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Leak: AT&T outbid Verizon for iPad deal

updated 11:15 am EST, Wed February 3, 2010

Verizon still wants iPad, iPhone in 2010

Clayton Morris today colored in the details behind his claims of ongoing Verizon iPad talks with word of why the carrier was absent from the launch and its future plans. The Fox News reporter claims that AT&T simply "outbid" other carriers by agreeing to the $30 unlimited and $15 250MB data plans. It's not evident what might have led Verizon to miss out on the deal, though it's allegedly much more concerned with getting an iPhone deal than a 3G-only device like the iPad.

Verizon may also have balked at the comparatively large gap between what it normally charges for data and what Apple was able to land. Much like AT&T, Verizon would normally charge about twice as much for similar amounts of bandwidth for a modem or a netbook.

The company is nonetheless purported to still be in talks with Apple, as it may have been since 2006, but may also be much more committed than it has been in the past. It allegedly hopes to have iPhone and iPad deals sometime in 2010. Many expect it to get more clout once it has an active 4G network and can use a cellular standard that will be shared with AT&T and other carriers.

Verizon representative Jeff Nelson said only that his employer had "no comment" on the talks. AT&T also wouldn't provide details but did say it was content to be the "main carrier partner" for the iPad's 3G.



By Electronista Staff
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  1. ff11

    Fresh-Faced Recruit

    Joined: Apr 2004

    +12

    Analysts: Apple devices are killing AT&T

    AT&T accountants seem to think otherwise.

  1. Bobfozz

    Fresh-Faced Recruit

    Joined: Jul 2008

    +13

    cheap

    I am sure Verizon, once again, was caught flat-footed by the AT&T bid. Each time they try to outsmart Apple they lose money. Whoever is running this "division" reminds me of the companies who turned down the Harry Potter book, much to their unending chagrin.

    Verizon wants what it wants, Apple wants what it wants, AT&T makes money too. And, it doesn't help Verizon's case when their leadership has gone out of its way to insult Apple.

  1. Raman

    Mac Elite

    Joined: Mar 2001

    -1

    Doubt this..

    The iPhone and iPad use GSM, not CDMA. It's more likely that AAPL were in talks with AT&T and T-Mobile (in the US) with regards to iPad data plans.

    In order to use Verizon (or Sprint), the iPad would have to use CDMA technology. I'm not saying that a CDMA module can't be stuffed into the iPad instead of the GSM module (if they are "modules" but since ALL other iPhones run on GSM and ALL carriers that the iPhone runs on in the rest of the world are GSM it makes little sense for Apple to create this 1 exception for the US for their product to work off CDMA.

    AT&T 3G service can be better but what do you think would happen to ANY carrier if they had this many iPhones thrown at it? I'm sure as Android devices gain in use on T-Mobile, Verizon, Sprint in the US, we'll see problems with their network capacity as well.

    Lastly, lets not forget that Google is now a competitor to AAPL. I'm sure they have some influence on carriers. As manufacturers (not the Carriers) impose exclusivity to a given Carrier for their hot new phone, the Carriers will have to play ball with several handset manufacturers.

    In the end, it's better for the consumer because we can let Apple, Google (and other Android manufacturers) have price wars with carriers for us hopefully leading to lower data plans. Voice will be dead as they allow VOIP over xG.

  1. DanielSw

    Fresh-Faced Recruit

    Joined: Aug 2009

    +7

    The iPad is going to explode on the market

    AT&T knows it still has a sweet deal with the iPad, despite any concessions it may have made with Apple.

    They've most likely been frantically upgrading their system, not only to handle the load from the iPhone/iPod Touch, but now are bracing for another barrage from the iPad.

    I'm guessing, once the upgrades go online, that most all of their traffic load problems will taper off significantly.

    I think they'll be able to weather the storm.

  1. Feathers

    Grizzled Veteran

    Joined: Oct 1999

    +5

    Vodafone

    Reminds me of information I heard in relation to Vodafone and the iPhone in the UK and Ireland. They almost laughed at what Apple were demanding and pretty much told O2 they were welcome to it. Two years later and everybody's getting the iPhone and getting better deals too. Exclusivity is for idiots.

  1. testudo

    Forum Regular

    Joined: Aug 2001

    -8

    Re: The iPad is going to explode

    They've most likely been frantically upgrading their system, not only to handle the load from the iPhone/iPod Touch, but now are bracing for another barrage from the iPad.

    I'm guessing, once the upgrades go online, that most all of their traffic load problems will taper off significantly.

    I think they'll be able to weather the storm.


    OMG, that was so funny! They've been working frantically! Load problems will taper off!

    Damn, man, you should be a comedian!

    What in the history of ATT (esp. since the iPhone's release) gives anyone reason to believe they have the desire or capability to address the problem? Esp. if you look at their actual 3G map, they've barely made a dent in where they've deployed that. Yet they're going to 'fix' their problems in a few months?

  1. testudo

    Forum Regular

    Joined: Aug 2001

    -6

    Re: Analysts

    Analysts: Apple devices are killing AT&T

    AT&T accountants seem to think otherwise.


    ATT's accountants have nothing to say about this deal. Accountants keep track of the money. The uppity-ups in management are the ones who make decisions, including this one.

    And this might be a "This will be great for us!" decision, or just as likely a "We need to keep this out of the hands of our competitors at any cost!" decision.

  1. jonboy

    Fresh-Faced Recruit

    Joined: Jan 2008

    -2

    This Sucks Big Time

    I can't believe Apple are still peddling this exclusivity c***. What is it Steve is so fond of saying "We genuinely care, we want to give our users the best experience", bullsh!t, if you want to give your users the best experience you wouldn't tie them to AT&T. In the UK we can now get the iPhone on almost all major network providers. It lets you use the best provider for your area and increases exposure and market share. What's wrong with that idea??!!

  1. iphonerulez

    Fresh-Faced Recruit

    Joined: Nov 2008

    -7

    I think that AT&T is just greedy...

    and so is Apple. Maybe Apple just figures it isn't worth the extra effort to put in a CDMA chip in the iPad. AT&T definitely sees $ signs in adding new subscribers. I'll bet that 250 MB plan is just gravy for AT&T to lick up without any effort. People will probably run over that amount so AT&T can really penalize users.

    I'm surprised that Verizon didn't win this one. They probably think the iPad won't sell in large enough numbers for them to get a worthwhile return. They probably thought the same way about the iPhone, too.

  1. Paul Huang

    Mac Enthusiast

    Joined: Sep 1999

    +8

    Verizon is a blood-sucking company

    Verizon is only slightly better than AT&T. What does that mean? Just about equally bad. For the amount of $$$ they charge, we shouldn't get third-world quality coverage and connection.

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