That is right. The MSM6500 (EV-DO) chipsets do not support AMPS (analog) so it will not work in some remote places where there are no digital coverage. It doesn't effect majority of the people living in big cities, but only in very remote areas.
However, having the analog service can sometimes backfire as it will use a lot of battery and you don't even know it when you are in analog only area. The digital only phones will simply go to "sleep", while the analog enabled phone will try to stay up and wait for phone calls, but that uses up quite a lot of battery power to do so in analog mode.
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