AT&T stops iPhone sales in NYC reports: You have a huge hit on your hands, a cellphone that sells as many handsets as you can shovel out the door. Better, you are an exclusive carrier, so all customers who want that phone must come to you. But you have a problem–the phone is so successful, and makes it so easy to use the internet that your network is starting to crumble in large metropolitan areas. What do you do to fix this? If you are AT&T, you stop selling the iPhone in New York City, and have your customer service people tell callers that "the phone is not offered to you because New York is not ready for the iPhone." Why? Because New York doesn’t "have enough towers to handle the phone." Consumerist reader Stephen tried to buy an iPhone from AT&T’s online store, but after entering his (Brooklyn) zip code he got a message that read "Sorry this Package is not available in your area" (try it yourself on the AT&T iPhone page). When he called the company, he got the above excuse.

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