RSSWhy a Verizon iPhone wouldn't work (for Verizon)
By Tim Conneally | Published October 9, 2009, 2:48 PM
One of the most common remarks you'll see in iPhone-related discussion is the "If iPhone were on Verizon Wireless" comment. Though phrased differently, they're usually the same sentiment...discussing how much better the iPhone experience would be on Verizon, and about how many more people would become satisfied iPhone users.
Most people seem to agree that Verizon Wireless' data network is better.
When Google and Verizon officially announced their partnership this week, Google CEO Eric Schmidt practically gushed at the quality of Verizon's network, saying it's "absolutely a fact that Verizon's data network is the best in the US by far."
Despite this, we've heard from experts for quite some time that the iPhone is not going to land on Verizon Wireless. It has, after all, not proven detrimental to Verizon's subscriber base, and appears to be only causing difficulty for the AT&T network itself.
At the CTIA Wireless conference yesterday, AT&T CTO John Donovan said his network's data traffic has grown by 4.932% in the two-and-one-half years that it has been the sole US supplier of Apple's iPhone, while voice traffic has grown only by a factor of two. The company has devoted a considerable amount of energy to keeping up with this deluge of traffic.
Comments from AT&T CEO Ralph de la Vega yesterday fueled rumors that the company may charge more for heavy data consumers, or even begin throttling them.
De la Vega's worrisome statement yesterday was this: "We have to manage the network to make sure that the few cannot crowd out the many" -- an allusion to research that said that 3% of all of AT&T's customers consume 40% of the bandwidth.
It's the sort of ratio commonly heard when providers argue in favor of throttling, but historically it's been used to speak out against P2P file sharing, and not simple smartphone users. So the statement could be referring to 3G modems or subsidized 3G netbooks, and not necessarily the iPhone.
But the public is now fully aware of AT&T's data burden because of the iPhone, so Verizon Wireless has jumped at the chance. This week, the carrier leveraged the perceived shortcomings of AT&T's network for a new set of television ads claiming that its 3G coverage is five times better than AT&T's. Verizon Wireless spokesman Jeffrey Nelson said yesterday, "It's worth noting that by the time they finish their 3G network buildout in 2011, which Mr. Donovan noted in his keynote this morning, we'll already have launched at least 25-30 markets with 4G LTE."
IDC Analyst Scott Ellison predicted this week that Verizon isn't just going to use the changing public opinion of AT&T as a marketing platform, but also as the basis of a rate hike. It would be the sort of situation where customers feel their higher rates are justified by better service.
If Verizon had the iPhone clogging up its network, it couldn't necessarily promise better quality service for all its users. That could be one big reason why Verizon won't be getting the iPhone any time soon.
"It would be the sort of situation where customers feel their higher rates are justified by better service."
If it helps them build out more, faster, better coverage? Go for it.
If they end up not doing any of the above? People will switch.
*shrug*
"That could be one big reason why Verizon won't be getting the iPhone any time soon."
Motorola Schulz/Sholes/Tao/(w/e) should be out by the end of the year. Android, Marketplace, GPS, better hardware... Wouldn't be so quick to make any predictions, Tim.
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|Realistically, this thing is a buggy data hawg that is seriously turning into an ATT albatross! Everyone else (Verizon, et al) is happy to watch ATT struggle.
Hell, the damn thing wouldn't work for any provider. The genius' at Apple just admitted that s/w ver 3.1 was loaded with bugs. Oops, mayhaps they should be called 'Homers' because they just issued a big 'DOH' (s/w 3.2 and, the bugs are still popping up).
But, this is not the iPhone/Apple/ATT slam forum. (I think)
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|I think the article assumes too much.
While the iphone certainly has the capability to use more bandwidth then other options when first introduced, it is now not the only phone that can consume large amounts of bandwidth. The blackberry has made vast improvements since the iphone's introduction and now can be just as much of a bandwidth hog as the iphone can be.
I think its inaccurate to assume the iphone is the only cause of the "burden" to AT&T.
Furthermore, I think given the right circumstances, Verizon would adopt the iPhone. It's a great phone and has undoubtedly brought users from Verizon to AT&T. I know of many people that made the switch just for this reason and don't know of any that have gone from AT&T to Verizon.
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|I left Verizon because I wanted a phone that easily worked with my Mac without jumping through hoops to use 3rd party software or deal with a phone whose capabilities had been crippled. Yes Verizon is a great company but they weren't giving me what I wanted.
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|Verizon was offered the iPhone before Apple offered it to AT&T, but refused because of Apple's demand to have absolute control over the device, applications, and profit! Verizon's share of the potential profit for selling the iPhone was simply not worth it, in the opinion of Verizon executives, who want to remain in control of Verizon Wireless...not giving up that control to an outside party. Can you blame them for making that business decision? Sure...I have an iPod Touch...which I love because of the Apps...and wish Verizon Wireless, my carrier, sold the iPhone...but I understand business decisions, too...and support VzW's reasons for turning down Apple's offer. I expect that with all the complaints about AT&T's poor performance in supporting the iPhone...that Verizon is now in a much better position to work a deal with Apple...but I wouldn't expect to see an iPhone on the Verizon network until 4G, which will begin full rollout in 2010!
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|Given their recent announcement with Google, I don't see Verizon ever striking a deal with Apple. Android is quickly catching up in terms of hardware and software and Google's services that support Android work a lot better than Apple's/AT&T's services. Anyone remember the 3 week voice mail outage?
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|Verizon has maintained their market share without the iPhone. Verizon will not give their best customers to Apple for the picking – customers who value Verizon’s network above the cool features of the iPhone. Verizon will not create another Microsoft in the cell phone industry by helping Apple to become the next dominant company in this industry. Look at the iTunes industry and how Apple controlled pricing (because the music companies collectively handed their assets to Apple). With the Palm Pre and the Palm Pixi, Verizon will have the strongest iPhone competitor to emerge since the introduction of the iPhone about 3 years ago. The Palm Pre in many ways is it superior to the iPhone and is strong enough to keep Verizon’s customers happy. Most customers do not care about the brand of phone they are using, they care about the smart phone experience, and no other phone has met the iPhone challenge, than the Palm Pre. Verizon knows that they would have lost customers to Sprint when the Palm Pre was released, had they not promised the availability of the Palm Pre on their network.
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|The Pre is never coming to Verizon. I seriously doubt that Verizon was worried about losing too many customers to Sprint due to it's superiority over the Sprint network. Bottom line is people want service more than they want toys, which is why Verizon has nothing to worry about from either AT&T or Sprint.
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|It wasn't the cool features of the iphone that made me switch. It was the ease of compatibility with my computer. I gave up on PCs in 2005 after numerous crashes and switched to a mac. I can't speak to anyone else's experience but I like what my mac has done for me and wanted a phone that syncs easily for calendar and address book. ATT hasn't been bad for me and I'd switch back to verizon tomorrow if they had a phone that synced with my mac without me having to jump through hoops to do it.
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|Wasn't Verizon the company kicking clients off their networks for complaining too much?
Wait'll they get a load of these people..
db.
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|No, that was Nextel/ Sprint not Verizon.
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|The other potential problem with Verizon getting the iPhone from a customer's point of view is 'whose software is going to be on it?'
Verizon wants the iPhone to use the VCast store while Apple wants it to access the iTunes store (as do I).
Any iPhone with Verizon software on it would be completely ruining the iPhone in my opinion.
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|Apple did go to Verizon first, but obviously, Verizon weren't ready for a GSM/UMTS/HS*PA version and Apple weren't ready with a CDMA/EVDO version. Had they met in the middle, perhaps, AT&T wouldn't have to complain about iPhone users at all and iPhone users would be a whole lot happier in the U.S.A.
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|Apple and Verizon are both control freaks. It was never in the cards. Everyone knew they'd never be able to reach an agreement.
This is really the only thing that worries me about them coming out with a phone that contains similar functionality. What will they do to it, how will they limit it to keep their "control"... Could be the AppStore all over again.
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|Supposedly, part of the Google deal is that the Android Market stays intact as it is today. If that is indeed the case, we could be looking at a s*** of how Verizon maintains control. As it is right now, ANY Android phone can be rooted and made to do pretty much anything outside of the carrier's control (my phone, for instance, refuses any OTA update from T-Mobile). This simple fact alone made me raise my eyebrows at the Google/Verizon deal.
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|Don't get me wrong; I am looking forward to it.
Verizon's network is simply *better*. More coverage, more towers, more bandwidth. AT&T doesn't hold a candle to the coverage and speed you get with Verizon.
I'm hopeful, but not over-zealous. I know Verizon's***ory in regard to their control issues. We'll see.
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|agh...i'm waiting for verizon having iphone that would be soo much better, i love verizone because they have the best signal and 3 G wireless... cause i'v been using verizone for 4 years and my familly using AT&T and some area for AT&T they have bad signal even were in LA
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|Maybe it's just me, but "AT&T CTO John Donovan said his network's data traffic has grown by 4.932% in the two-and-one-half years that it has been the sole US supplier of Apple's iPhone" seems to indicate that if AT&T can't handle a less than 5% increase, they should rethink their strategy.
Although the next statement that the voice traffic has grown by a factor of two seems to indicate that Betanews has made a mistake in the data traffic figure. Is it 49%? 493%? 4,932%?
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|i'm 99.99% sure that the percentage mentioned should be 4,932%
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|I'm 99,99% sure that you don't know the fact that in Europe they use ',' as decimal, and '.' as separator while it is the opposite in the US.
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|blah blah blah... How is this even remotely related to what's BetaNews all about? Seems like random thoughts of someone who has heard something here, something there but has not done a market research on his own. Making a post out of this? Give me a break.. More posts like this and BetaNews site leaves my bookmarks folder.
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