With iPad, Apple Still Has a Fatal Attraction for AT&amp;T

When Steve Jobs said Apple’s new iPad tablet would have 3G data service from AT&T during Wednesday’s press conference, sighs of disgust could be heard from the audience, presumably from disgruntled iPhone customers.

Prior to the unveiling of the 9.7-inch device Wednesday, a few vague rumors suggested Verizon would carry the tablet. Instead, Jobs announced two versions of the iPad: a Wi-Fi only model and an unlocked, Wi-Fi + 3G model for use on GSM networks. The Verizon network operates on the CDMA standard, meaning Verizon won’t be able to support the iPad.

Why not Verizon? Apple must be keenly aware of the incessant AT&T bashing from iPhone owners. And yet AT&T will be the primary U.S. carrier for the tablet, just as it is for the iPhone.

However, the tablet’s situation is different from the iPhone’s, analysts told Wired.com. First of all, this isn’t a phone. The iPad is a data-driven, media-rich device that you’ll primarily be using in your living room. Second, the tablet does not require committing to a contract for 3G. You can prepay a month ($15 for 250 MB or $30 for unlimited) for when you’re traveling, for example, and then cancel the 3G and just use the Wi-Fi.

But why not Verizon? Surely, Apple must have at least thought twice about sticking with AT&T as its official U.S. partner for the iPad. Dissatisfaction with AT&T did, after all, incite a consumer protest attempting to bring down its network with digital sabotage.

“What is this fatal attraction between Apple and AT&T?” wondered MKM Partners analyst Tero Kuittinen. “Pretty much everybody I talked to really expected Verizon.”

Kuittinen said Apple may have stuck with AT&T to retain a cordial relationship, because telecom analysts expect the iPhone’s exclusivity contract with AT&T to end in the next year, which could invite a Verizon iPhone.

“If they’re planning an iPhone Verizon launch maybe they’ll want to throw a bone at AT&T,” he said.

Ross Rubin, an NPD analyst, said it’s unlikely Apply purposely left Verizon out. The tablet is compatible with new GSM micro SIMs, which supports international carriers, so Apple likely made this decision to simplify its offerings.

AT&T said it plans to continue improving its network to help support Apple’s new device. AT&T iPad customers will have free access to 20,000 hot spots nationwide, an AT&T spokesman said.

“We have a great relationship with Apple,” an AT&T spokesman said. “Today we offer the nation’s fastest network and will continue to increase network speeds throughout 2010 and 11 in advance of 4G networks and devices being widely available which further sets us apart from the competition of the mobile broadband leader.”

Photo: Jon Snyder/Wired.com