Analyst makes case for T-Mobile iPhone.

imageMost people familiar with the iPhone and its realtionship with service provider AT&T expect that if Apple were to due away with that exclusive arrangement, Verizon would be next in line to distribute the device.

The Verizon wireless network serves the most subscribers in the United States with 71 million customers and currently generates the most revenue of any domestic carrier.

However, TheStreet.com reports that Doug Reid, analyst for San Francisco-based investment banking firm Thomas Weisel, sees T-Mobile as a likley provider for the iPhone when Apple’s contract with AT&T ends this summer.

 

Reid predicts that Verizon would be more interested in selling a new Apple product such as the fabled “iTablet” or the iPhone 4G rather that putting their name on existing technology.

Mr. Reid notes that Verizon initially refused Apple’s offer to carry the iPhone three years ago because of “control issues” and since than has partnered with Google and Motorola to compete as fiercely as possible with the Apple/AT&T duo.

Unlike Verizon, T-Mobile operates the same UMTS type of network that AT&T uses, which is compatible with the iPhone. Offering the current models of the device would not require a network overhaul by T-Mobile or the proposed “worldmode” Apple iPhone with a hybrid chip from Qualcomm.

Apple would need to produce a handset compatible with T-Mobile’s 3G frequency.

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