“Then you’re [sic] $200 iPhone would run $600 and forget ‘free phone’offers……they lock the handsets to networks and require contracts because they are supplementing the purchase price of the handset”

The makers of $600 phones would find themselves selling many fewer phones, I’d think.

It’s the old razor/video game/ink jet printer model……Sell the initial product at or below cost and make money on the recurring purchases……..

Either way, the industry is overdue for a shakeup, one far more substantial than that which resulted from the introduction of the iPhone.

How would it hurt AT&T? The customers of the rural small carriers want iPhones and BB’s, but can’t get them because the big carriers have them locked up with exclusive deals, and don’t serve these rural areas. The reduction to 6 mo. in the exclusive period would result in more iPhone and BB sales in these areas. AT&T would not be affected, since they don’t serve them. The only way AT&T would be affected is if the Feds forced the major carriers to end exclusivity completely (after say 6 mo.). Then Verizon could get the iPhone.

TimB is correct, not you. LTE is part of 3GPP, which GSM is also part of, but it is not GSM, nor is it compatible in any way with existing GSM networks. Also, as Tim points out, LTE is data only. Verizon’s move to LTE will not enable any GSM handsets to function on their networks. So, even the LTE iPhone that eventually comes out will require GSM for voice and thus will still not work with Verizon, who will continue to use CDMA for voice.