Verizon dealt blow as AT&T gains iPad

Verizon was dealt a blow yesterday after Apple unveiled that its latest creation will use AT&T services rather than Verizon's.

The telecom company's stock fell over 2 percent yesterday as Apple chief Steve Jobs introduced the new iPad mobile tablet computer.

Analysts expect the device to sell upwards of 8 million units through 2010, marking a sharp blow to Verizon.

AT&T is going to get new customers that Verizon could have gotten had iPad been available on its network, said Piper Jaffray analyst Christopher Larsen.

The decision comes as a surprise given AT&T has been struggling to meet network demand for Apple's previous product, the iPhone.

Apple acknowledged the rising complaints surrounding AT&T in a conference call on Monday, but said that it reviewed the providers plans and had high confidence it could address them.

Ironically, Verizon could be locked out of many mass market targeting product launches because of its network technology.

Though offering superior performance and security, Verizon's CDMA network technology is not used in many markets outside the United States. Conversely, AT&T's network employs GSM, which is used virtually everywhere.

Verizon's chief financial officer, John Killian, said this week that devices like the iPad would be beneficial to wireless providers, helping to attract lucrative data customers.

AT&T's average revenue per user is $51.07, while Verizon's was $50.75 for the latest quarter.