WSJ article on Verizon's Iphone?!?

[tedrodgerscpa]

Not everyone here is a subscriber to the WSJ, so I thought I'd pop up this article.

Seems like all of the iPhone haters (me) that really want an iPhone (me) will finally be able to make calls on an iPhone...

Take it with a grain of salt. I know that the internet has been abuzz with Verizon iPhone rumors, but we may be getting closer.

New iPhone Could End AT&T's U.S. Monopoly

By YUKARI IWATANI KANE, TING-I TSAI And NIRAJ SHETH

Apple Inc. plans to begin producing this year a new iPhone that could allow U.S. phone carriers other than AT&T Inc. to sell the iconic gadget, said people briefed by the company.

The new iPhone would work on a type of wireless network called CDMA, these people said. CDMA is used by Verizon Wireless, AT&T's main competitor, as well as Sprint Nextel Corp. and a handful of cellular operators in countries including South Korea and Japan. The vast majority of carriers world-wide, including AT&T, use another technology called GSM.

With Apple developing a phone with CDMA capability, its exclusive U.S. arrangement with AT&T dating to 2007 appears set to end.

Verizon Wireless, owned by Verizon Communications Inc. and Vodafone Group PLC, declined to comment. An AT&T spokesman said: "There has been lots of incorrect speculation on CDMA iPhones for a long time. We haven't seen one yet and only Apple knows when that might occur." Apple declined to comment.

Separately, Apple plans to release a new version of its current iPhone this summer, continuing its practice of annual upgrades at about the same time of year, said people briefed on the matter. The model is likely to be thinner and have a faster processor, two people familiar with the device said.

For AT&T, the Apple relationship has been crucial, helping to make the carrier the U.S. leader in lucrative smart-phone market share. According to comScore Inc., AT&T has over 43% of all U.S. smart-phone customers, compared with 23% for Verizon. These customers are especially attractive because they generally pay higher monthly rates for data plans.

For several quarters, AT&T's growth has come almost single-handedly from the iPhone. In the fourth quarter of 2009, the carrier said it activated 3.1 million new iPhones. In comparison, it counted only a net total of 2.7 million new subscribers as some customers moved from other phones to iPhones.

"You're not going to lose the iPhone [exclusivity] and make up growth somewhere else without bearing the cost," said Sanford C. Bernstein & Co. research analyst Craig Moffett.

The people briefed on the matter said the upgraded GSM iPhone is being made by Taiwanese contract manufacturer Hon Hai Precision Industry Co., which produced Apple's previous iPhones. The CDMA iPhone model is being made by Pegatron Technology Corp., the contract manufacturing subsidiary of Taiwan's ASUSTeK Computer Inc., said these people.

One person familiar with the situation said Pegatron is scheduled to start mass producing CDMA iPhones in September. Other people said, however, that the schedule could change and the phone may not be available to consumers immediately after production begins.

Representatives of Pegatron and Hon Hai declined to comment.

Verizon has publicly stated its interest in the iPhone, but people familiar with the situation said Apple originally decided against developing a phone for Verizon to keep its development process simple, since the technologies are incompatible.

Verizon also is upgrading its network to a higher-speed technology, so Apple has said it believed CDMA was a short-term technology. Apple later changed its mind as it realized Verizon's upgrade would take longer than expected, said people familiar with the situation.

Making the iPhone available through Verizon, which has over 91 million customers, as well as potentially other CDMA carriers could open up a significant new market. In 2009, iPhone sales globally rose 83% to 25.1 million, far outpacing the 20% to 25% growth in smart phones sales overall, according to Bernstein. But since Apple already dominates smart-phone sales through existing partners, "sooner rather than later, Apple is going to have to look to find incremental distribution," said Bernstein analyst Toni Sacconaghi. He estimates Verizon could help Apple nearly double the number of iPhone users in the U.S.

AT&T's relationship with Apple, a lucrative deal arranged by Apple Chief Executive Steve Jobs, shows how such a partnership with other carriers could present challenges.

Analysts estimate AT&T pays Apple more than $600 per phone, but sells most of them for $199 or less. Heavy iPhone users have also put an enormous load on AT&T's wireless network, pushing the carrier to a breaking point in some markets such as New York and San Francisco.

Qualcomm Inc., which holds patent rights to CDMA, is the dominant designer of CDMA chips.

[MiamiE]

Verizon is way to expensive for me!

[Blueface]

I have never understood the loyalty to Verizon in certain markets.
I am sure there are places that AT&T just won't work but I happen to have AT&T for my iPhone and for my business cell phone (Motorola).
I have traveled many corners of this country of ours.
Both work the same.
Both are effective.
Neither has left me longing for coverage.

My wife has Verizon.
Reason is that she talks more to my daughter and grandson then me.
As such, I figured I would save my daughter money by having both on the same network.

The very same way my wife uses her Verizon phone, I get coverage with my iPhone and business cell.

Maybe it's me but I just don't get it.
If one wants an iPhone, who cares who the carrier is (for the most part, understanding some markets may not have good reception)?

[cort]

Originally Posted by Blueface

I have never understood the loyalty to Verizon in certain markets.
I am sure there are places that AT&T just won't work but I happen to have AT&T for my iPhone and for my business cell phone (Motorola).
I have traveled many corners of this country of ours.
Both work the same.
Both are effective.
Neither has left me longing for coverage.

My wife has Verizon.
Reason is that she talks more to my daughter and grandson then me.
As such, I figured I would save my daughter money by having both on the same network.

The very same way my wife uses her Verizon phone, I get coverage with my iPhone and business cell.

Maybe it's me but I just don't get it.
If one wants an iPhone, who cares who the carrier is (for the most part, understanding some markets may not have good reception)?

In my neck of the woods AT&T's coverage sucks. I use Verizon because I get a signal everywhere I go. I guess it just depends on your location?

[tedrodgerscpa]

In many areas of the country where populations aren't dense (read: NYC, Atlanta, Miami, Chicago, Houston, LA), AT&T's coverage is abysmal. Horrible. I mean really really really bad.

I longingly look at other people's iPhones, but I have loaned out my cell phone when they need to call someone.

[Blueface]

Originally Posted by Cort

In my neck of the woods AT&T's coverage sucks. I use Verizon because I get a signal everywhere I go. I guess it just depends on your location?

I trust you and clearly have no reason to doubt what you say BUT:
I have been to the following places with overall excellent AT&T coverage:
Sacramento
Diamond Bar
Orange County, CA
Chicago
Milwaukee
Phoenix
Ft. Worth
South Florida
NJ
NYC
Long Island
Charlotte
Savannah
Atlanta
Pensacola
Tampa
Orlando
Mobile
Indianapolis
Seattle
Las Vegas
Portland
Austin
Houston
New Orleans
Nashville
Pittsburgh
Maine
New Hampshire
Boston
Even in Traverse City, MI of all places, practically in Canada.

I probably have left half of the actual list off as I am too freaking old to remember.

Again,
I am sure some folks have bad pockets as you do (I have never been to Southern Cal) but I have yet to find myself anywhere that I have been regretful about my cell service.

[tedrodgerscpa]

http://popup.lala.com/popup/504684693668965658

I'm glad to hear your positive experiences. I live a good distance (20 miles) outside of Columbia, SC, which ain't the world's busiest metropolis.

I'm not a Verizon fanboy, and I really hate the size of my bill.

[GreekGodX]

There are only certain places in my house the AT&T actually works. When I say, "certain" I mean it. You have to sit down in the same position at the kitchen table to get service, one move and your call is dropped. Verizon works everywhere in the house. The service for me is the #1 reason why I don't have the iphone.
If Apple makes one for Verizon, I'd consider it. Only problem is my contract is up in April and I'm most likely getting a Android phone. So if indeed apple brings the iphone over, it will be almost 2 years before I get one on Verizon.

[jmsremax]

Originally Posted by Cort

In my neck of the woods AT&T's coverage sucks. I use Verizon because I get a signal everywhere I go. I guess it just depends on your location?

Plus with a family share plan I only spend $35 a month. I had AT&T and kept dropping calls and wouldn't receive texts. I will never go back to AT&T no matter how bad I want an iPhone. Traveling internationally I hear AT&T works well and Verizon not so much.

[shilala]

If Verizon was the last cell provider on earth, I'd drag along a roll of string and some cans. I'd practice my shouting, too.

[MiamiE]

I just hope ATT keeps selling the iPhone as well.

[cbsmokin]

Sounds like they are pushing for a Christmas release.

[E.J.]

Not a fan of AT&T. Coverage sucks in the IM West. Sure, if you are in SLC or VEGAS or Denver, you get coverage....but drive from SLC to Vegas and see how good of coverage you get.

I dumped AT&T for Verizon years ago and have been VERY pleased. I came close to jumping ship back to AT&T for th iPhone but remembered my poor service....both coverage and customer and said no phone was worth that.

When/if Verizon gets the iPhone, we will have 2....maybe 3....

[jkim05]

Originally Posted by jmsremax

Plus with a family share plan I only spend $35 a month. I had AT&T and kept dropping calls and wouldn't receive texts. I will never go back to AT&T no matter how bad I want an iPhone. Traveling internationally I hear AT&T works well and Verizon not so much.

Internationally it's not Verizon or ATT that doesn't work properly, but rather the cellular technology. Almost all of the world operates on the GSM network like ATT and not on CDMA like Verizon.

I can say for myself, I have ATT and no complaints and I like my iPhone so I don't see myself switching anytime soon. ATT has significantly increased their coverage over the past year as well.

[kgoings]

Droid

[MikeyC]

Originally Posted by tedrodgerscpa

In many areas of the country where populations aren't dense (read: NYC, Atlanta, Miami, Chicago, Houston, LA), AT&T's coverage is abysmal. Horrible. I mean really really really bad.

I longingly look at other people's iPhones, but I have loaned out my cell phone when they need to call someone.

I live just outside of Boston and there are HUGE AT&T dead zones around where I live. I wish I never bought an iPhone. When my contract is up in about a year I'm going back to Verizon.

[kgoings]

Originally Posted by MikeyC

I live just outside of Boston and there are HUGE AT&T dead zones around where I live. I wish I never bought an iPhone. When my contract is up in about a year I'm going back to Verizon.

There are huge AT&T deadzones everywhere. It is hard to free yourself from the AT&T/Apple brainwashing, congratulations and consider yourself lucky!

I have been with Verizon for 11 years now...no plans on ever switching to another carrier, because I like having phone coverage EVERYWHERE....
I will also never buy an iPhone...I hate Apple..more so, I hate Steve Jobs...

I love my BlackBerry...

[kenstogie]

I think typically anytime there's competition that's good for the consumer. Personally I use Googlevoice and route all my phonecalls to my work cell (Verizon) and don't pay for a cell plan. Coverage in rural areas I hear is not so good with other carriers but have no experience with them.

[shilala]

It's odd how coverage runs.
I live in the sticks. My iphone gets way better reception than any of my previous Verizon phones. Even the worst dead spots with Verizon are gone. I don't have any areas locally where I don't have reception.
My biggest fear with Verizon getting the iphone is that they'll cripple the OS and screw up a wonderful thing so they can nickel dime everyone to death. I know the rumor has been hanging out there for a long time, I just can't see Verizon agreeing to NOT screw up the phone's OS to serve their own business model.
Time will tell, I suppose...