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Apple to dictate terms to Verizon for iPhone?

updated 07:10 am EDT, Mon July 20, 2009

Apple dictates iPhone term

Apple could dictate its own terms should it switch to Verizon Wireless, says TechCrunch . The website suggests that AT&T has numerous shortcomings, such as recent problems with the carriers visual voicemail service, that could cost it the iPhone when its contract expires next year. AT&T is currently attempting to press Apple for a contract extension, but TechCrunch points out that a contract renewal could be an unwise decision that would cause users to drop AT&T and the iPhone associated with it.

AT&T has had numerous problems related to its handling of the iPhone including activation problems following both the release of the iPhone 3G and subsequent 3GS as well as an inability to support MMS and tethering despite many other carriers, such as Rogers in Canada, enabling both on day one.

In a related article, ZDNet suggests a Verizon iPhone deal is a possibility, but an Apple-dictated deal is deemed questionable due to the incidental benefits for Verizon; the CDMA carrier has been able to capitalize on the slowdowns and other flaws with AT&T's services to pick up certain customers. Supporting the iPhone would potentially create strain on its own network.

How likely it is that Apple will add or switch to the Verizon network is unclear. Verizon was offered exclusivity when the original iPhone was launched but declined. Growth in the spring quarter also indicates that Verizon can sustain itself without the iPhone. However, the network has reportedly been contemplating an iPhone deal, and the saturation of the phone market has left companies fighting more to attract customers from other rivals rather than completely new customers.



By Electronista Staff
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Comments

  1. chefpastry

    Mac Enthusiast

    Joined: Nov 2005

    +7

    Again?

    I guess tech writers are never going to stop writing about POSSIBLE Verizon/iPhone deals until it happens...

  1. itguy05

    Forum Regular

    Joined: Apr 2005

    -3

    Who cares?

    AT&T is fine. Verizon is NOT, I REPEAT NOT BETTER.

    Verizon has a great brainwashing department though but the service is the same as AT&T.

  1. sammaffei

    Fresh-Faced Recruit

    Joined: Sep 2004

    -3

    Bargaining chip

    Apple should agree to an extension if AT&T allows tethering (and enables MMS).

  1. MacDan2004

    Fresh-Faced Recruit

    Joined: Dec 2004

    +5

    They All Stink...

    All cell phone carriers stink. Better to stick with the devil we know. People are not going to drop the iPhone because of AT&T. AT&T is going to improve its support. I personally don't care about MMS or tethering.

  1. bjojade

    Fresh-Faced Recruit

    Joined: Jun 2007

    +3

    Depends on your area

    AT&T may be fine for you in your area, but the coverage around here is pretty much non existent. In that case, Verizon is far better. Having a choice of carriers would mean MORE iPhone sales. AT&T would lose customers, Verizon would gain, and Apple wins. I don't understand how Apple benefits from an exclusive agreement.

  1. TheSnarkmeister

    Fresh-Faced Recruit

    Joined: Jun 2007

    -5

    One less iPhone user unti

    Apple's iPhone ranks will be shy this one Mac loyalist until it either removes exclusivity with AT&T or provides a pay-as-go option. I will not sign a contact with a company that has such a well established reputation for lousy service and exploiting its customers. Even now, in order to better support the iPhone, AT&T is stealing bandwidth from its non-GSM network, making rural (typically poorer) customers pay more for less, in order to better subsidize (typically wealthier) data-intensive (often corporate) users. In short they continue, right to the present, to view customers as an exploitable resource to be milked for short-term profits, rather than as partners in expanding a technology that benefits, and enriches us all in the long run.

  1. ClevelandAdv

    Fresh-Faced Recruit

    Joined: Jul 2004

    +5

    Dictate Terms

    AT&T has seen huge gains from iPhone switchers. These were mostly at the expense of smaller carriers such as Sprint/Nextel and Alltell. This influx of subscribers has given AT&T the capital to upgrade its network - to the benefit of all device users.

    If Apple is going to switch to Verizon it will be on Apples terms, or they will stick with AT&T as the latter is not going to let the iPhone deal slip away easily. The PR from the iPhone deal alone is worth the price even if AT&T loses money in the short-term on iPhone sales.

  1. kaisdaddy

    Fresh-Faced Recruit

    Joined: Apr 2005

    +1

    Apple is not going to...

    ...build a CDMA phone. Therefore, a deal with Verizon is HIGHLY unlikely unless Verizon suddenly rolls out a GSM network that they haven't been telling anyone about.

    The only (relatively) major industry player who could immediately take the iPhone and run with it would be T-Mobile. This is not to say that they are necessarily better or worse than other carriers, it's just that they have an existing GSM network in place.

    It would be nice for US iPhone customers to have a choice between at least two carriers...

  1. arkstfan

    Fresh-Faced Recruit

    Joined: Jul 2009

    +5

    The problem with ATT

    Is that it seems their weakest coverage lines up nicely with where the bulk of the media, especially tech media are located. I hear the constant horror stories of their coverage but can't replicate it except for one bizarre quirk. There is a particular highway interchange where it consistently drops me handing off between towers. Outside of that I've worked in buildings where no one could get a signal except ATT customers. I've traveled to conferences where no one but ATT customers could complete a call.

    If ATT would beef up their infrastructure in NY, LA, and the Bay Area we wouldn't get these articles.

  1. bleee

    Mac Enthusiast

    Joined: Mar 2002

    +6

    Teathering and MMS

    "such as Rogers in Canada, enabling both on day one."

    Yes and it's fantastic!

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