AT&T Halts iPhone Web Sales to NYC Rep cites shortage of towers, then claims fraudulent orders By Nick McMaster, Newser Staff Posted Dec 28, 2009 1:24 AM CST Updated Dec 28, 2009 5:39 AM CST 9 comments Comments A customer holds an iPhone 3GS at an Apple store. (AP Photo/Paul Sakuma, file) (Newser) – AT&T has stopped selling the iPhone online to customers in New York City. The first explanation, from an AT&T rep, is that the company's New York network couldn't handle any more data-hungry iPhones because the city doesn't have enough towers. New York "is not ready for the iPhone," the rep told the Consumerist. Then the story changed to a wave of fraudulent orders, according to the most recent company statement, leaving the real reason no clearer than AT&T reception.