Iphone Market Expands to Fargo

It’s hard to beat discussions of the weather in this area, but this week opened with the announcement that AT&T would purchase 79 new markets from Verizon that included North and South Dakota and more importantly, Fargo.

As soon as the news of expanding AT&T coverage in rural areas was released, iPhone became the word of the day. Apple’s flagship mobile product has been noticeably absent in this region except for a few Minnesota based handsets. Although the demand in this area seems to be present, as usual, infrastructure does not keep pace with more major metropolitan communities. AT&T’s entrance promises to bring us laggards up to speed. But, is it too late?

The iPhone handset works exclusively on GSM networks. AT&T and T-Mobile are the only US companies to offer GSM. Verizon, the nation’s largest carrier, uses CDMA technology as does Sprint and most other players. As AT&T moves in to town, they must build out a new GSM network in order to service the millions of new subscribers they just purchased. AT&T seems to think they cam make this happen within 12 months. Let’s add a couple three months for good measure.

So, great! let’s all buy iPhones from AT&T this Christmas right? Well, there seems to be a small catch in all this that may give the consumer additional options, so you might want to hold on just a while longer. In 2010, the exclusivity agreement between Apple and AT&T will expire. Sure, both companies will continue to work together, but at that point, Apple will have an opportunity to expand. It is rumored that discussions have re-started between Apple and Verizon. If Apple were to release a CDMA version of the iPhone (or one that does both), it could expand both domestically and internationally on the Verizon network.

As we wait for all this positioning to work itself out, we will see the release of several new Android smartphones; building off the success of the T-Mobile G1. We will also experience the much anticipated (and very bold) release of Palm’s new smartphone, the Palm Pre. The Pre will run on the Sprint network and should be ready to go in just a few months.