The Big Red is pushing along with there fibre optic network putting Verizon years ahead of all the other US carriers, and with the iPhone eventually hitting the Verizon network at some stage, the Big Blue is beginning to pale in comparison reports the street.

Richard Dineen, an analyst for HSBC downgraded AT&T shares to neutral on Tuesday, and Dineen stated “there’s really no single crushing development,” as he cut his target price for the Big Blue down to $27 from $34.

In his report, Dineen cited “continued weakness” in AT&T’s wrieline operation along with concern over the wireless business will lose altitude when AT&T finally loses exclusivity over the iPhone; although it is believed AT&T will gain an extension to their iPhone exclusivity which would mean Verizon wouldn’t see the iPhone until sometime next year.

Dineen set his target price for the Big Red up to $38 per share from $36. AT&T shares fell 1 percent to $24.85 while Verizon shares dropped less than a percent to $28.94.