AT&T has halted online sales of Apple iPhone to residents of New York City and surrounding areas like Westchester County and northern New Jersey. If a customer orders an iPhone using any zip code of New York City or surrounding areas they get the message “Sorry this Package is not available in your area”.

When journalist Laura Northrup of Consumerist contacted AT&T customer service to buy the iPhone online. One of the representatives named Daphne told her that iPhone is not available in New York City area “because New York is not ready for the iPhone.” Daphne added that AT&T doesn’t have enough towers to handle the phone.

However, AT&T is now trying to give alternative explanations for this problem. AT&T Spokesman Fletcher Cook wrote in an email to several publications “We periodically modify our promotions and distribution channels.” AT&T is also saying that they have stopped selling iPhone online in New York area because of increased fraudulent activity.

AT&T should have known that they don’t have enough towers in New York City for more than a year now, as New Yorkers have been suffering because of AT&T network since iPhone 3G was launched in 2008. Also people doing fraudulent activity could use other zip codes (they don’t need New York zip code), then why stop selling iPhone online only in New York City areas.

According to AT&T, if you are in New York City and still want an iPhone you can get it via Apple Stores or AT&T retail outlets.