Apple to give AT&T the exclusive boot?

[Raiden]

The tablet might not be the only announcement Apple makes on Wednesday.

Apple (AAPL) is ready to say so long to AT&T (T) as its exclusive service provider for the iPhone.



Applephiles are eagerly awaiting the company's latest product announcement, which will take place Wednesday, and while many are banking on the introduction of the company's tablet PC, others believe Apple will also announce the end of its exclusive distribution deal with AT&T, according to a report by HotHardware.com.



AT&T has been slammed in recent weeks for problems associated with the iPhone and the telecom giant is "tired of taking the heat" for poor reception from iPhone users, the report said.



Because AT&T is the only company to carry the iPhone and because it's such a data hog, it's largely to blame for AT&T's network troubles, HotHardware said. "The iPhone itself doesn't really handle the switch from 3G to EDGE very well, so calls that are in-progress tend to fail whenever the 3G bands aren't optimal," the report said.



AT&T officials believe the iPhone is hurting the company's image, and they are no longer interested in having exclusive access to Apple's handset, according to the report.



Verizon (VZ) is expected to be the newest Apple partner, but Apple has not yet made an iPhone that is compatible with Verizon's network.



Shares of Apple, which will report its quarterly results after today's closing bell, were up $4.85, or 2.5%, $202.60. AT&T shares rose 14 cents to $25.53. Verizon stock was up 13 cents to $30.47.



Apple's event is scheduled for 10 a.m. PT Wednesday. Apple could also introduce the latest update to the iPhone software, OS 4.0.