AT&T Resumes New York iPhone Sales - TheStreet

DALLAS (TheStreet) -- AT&T (T) - Get Report resumed selling Apple's (AAPL) - Get Report iPhone to New York City-area customers through its Web site Monday after a weekend hiatus, but not before another ding to its notoriously sketchy wireless service.

On Sunday, blog

The Consumerist

reported that AT&T told one of its Brooklyn-based bloggers that the iPhone "is not offered to you because New York is not ready for the iPhone. You don't have enough towers to handle the phone." AT&T wouldn't comment on the report.

Up until about 2 p.m. EST Monday afternoon, buyers trying to purchase an iPhone at ATT.com using any New York City zip code were told that there "there are no packages and deals available at this time,"according to visits to the site by

TheStreet.com

and other reports.

TheStreet.com

found the iPhone available on ATT.com in the 2 p.m. hour.

AT&T continued to sell the iPhone in Manhattan Apple stores and at AT&T retail stores. In an email to

TheStreet,

an AT&T spokesperson said, "we periodically modify our promotions and distribution channels. The iPhone is available in our New York retail stores and those of our partners."

While the company didn't elaborate on why it stopped selling phones to New Yorkers, the blip in AT&T's iPhone availability is the most recent in a long line of service hurdles plaguing iPhone users. In a customer service survey issued earlier this year by consultant firm CFI Group, AT&T ranked last in overall provider satisfaction, lagging behind competitors like

Verizon

(VZ) - Get Report

.

"AT&T's exclusive iPhone arrangement with Apple has been a double-edged sword," said the report. "Half of iPhone respondents said they would like to defect to another provider."

While Apple's phone ranks among

TheStreet's

top smartphone picks of 2009

, its one drawback has always been the spotty service of its partner and service provider, AT&T. Next year, AT&T

will lose its exclusive iPhone agreement

, and while analysts speculate that the partnership may fall to Verizon, Apple has been mum on the deal.

-- Reported by Maggie Overfelt in New York