Verizon CEO Seidenberg on iPhone, cord cutting, tiered pricing

Verizon CEO Seidenberg on iPhone, cord cutting, tiered pricing

Summary: Verizon CEO Ivan Seidenberg on Thursday held court on multiple topics. In a nutshell, Seidenberg isn't in a rush to get Apple's iPhone, says cable companies are delusional on cord cutting and hinted that tiered pricing is around the corner.

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Verizon CEO Ivan Seidenberg on Thursday held court on multiple topics. In a nutshell, Seidenberg isn't in a rush to get Apple's iPhone, says cable companies are delusional on cord cutting and hinted that tiered pricing is around the corner.

The comments from this morning from a Goldman Sachs investment conference were notable on many fronts and raised a bit of a ruckus. Let's roll the transcript.

Also: Apple's iPhone going to Sprint?

On his desire to land the iPhone for Verizon:

This is like the Knicks getting Carmelo Anthony, you know. Like it would be really good if the Knicks got Carmelo Anthony but they have to play the game to get him. Right? So here is kind of like the way I would look at that. We have worked hard to make our network a destination for all the suppliers to develop devices and equipment. Because we think we have the best value proposition to attract customers. So that is our view.

So the iPhone, AT&T has done a wonderful job with it, Apple obviously has done a wonderful job with it. We were not in the game because it was GSM-based, it was global standard, really not there. We have worked hard at building a franchise out of Droid which proves that if there is an alternative, an acceptable alternative to the iPhone, and a great network and a great distribution channel, the market will go that direction.

I'm hoping that the success we have had with the Droid will lead us to the place where Apple, Samsung, Motorola, Huawei even, will want to build 4G devices and accelerate the ecosystem development so that the number of devices that will be available on 4G will be extraordinary. And our view would be we would want to carry them all.

I can't speak for Apple but my view is there is a lot of momentum in the industry for people to move on the 4G issues quicker. Now there was a fear that we build a network and that the devices wouldn't be there. Well, we are going to have a tablet. We have already announced one. There will be other tablets coming out. We have got a device lineup that would include some 4G capability starting in the first quarter.

We don't feel like we have an iPhone deficit. We would love to carry it when we get there but we have to earn it. And I think what we need to do is show all the suppliers that we have equal treatment and we have the best network for people to put all their equipment on. So the answer to your question is I am believing that 4G will accelerate the process and any other decisions that Apple makes would be fine with us and I think we are running our business to make ourselves the destination for all of the key tablets and devices and hopefully at some point, Apple will get with the program.

On cable cord cutting, something Comcast pooh poohed on Wednesday, Seidenberg said:

Listen, they (cable companies) are doing well and they have to play their cards. My only comment is they don't know what they don't know. And I think I have all of the bruises of sort of playing out the same strength. We never thought anybody would cut the cord on telco, right? We have got 30% of our customers cutting the cord. Young people are pretty smart. They're not going to pay for something they don't have to pay for. So you've got to watch the market, over the top there is going to be a pretty big issue for cable.

And on tiered pricing and 4G, Seidenberg said:

When we layer in 4G, the experience is going to be very good. When you think about 4G, if I may make a comment about it, we think about it this way. So we have actually had the 4G network in the 30 markets or so we are going to introduce. It has been up and running since around the middle of June. So some of you may be running around on your devices actually have been experiencing the 4G speed and you will probably say what happened? But it is probably not that noticeable because you don't think about it.

So we have been tweaking, tuning, trying to get everything all lined up. So when we cut over on our network, we will have cut over about 30 markets and about 50 airports and all the airports are in the same market as the 30. So the issue is you will get a pretty good nationwide experience right from the get-go...

Getting back to your question on pricing, I think we are going to feather in our pricing over the next couple of months as we introduce new services, new products and try to get that value proposition to fit the added excitement and added capabilities that we are going to offer into the marketplace. So I don't think we want to match our pricing to what we think is going on today because we think we are not sure it is the right experience nor is it the right value proposition.

But we do agree with tier pricing and we do think we have to monetize the investments we make and you will us do that over the next four to six months.

Topics: iPhone, Apple, Hardware, Mobility, Networking, Verizon, Wi-Fi

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26 comments
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  • Smart for all new hw to skip CDMA and go right to LTE

    Bringing a new CDMA phone out now would be wasted resources. Probably a few suckers would buy it but seriously, you shouldnt focus any efforts on such a short term thing...
    Johnny Vegas
    • RE: Verizon CEO Seidenberg on iPhone, cord cutting, tiered pricing

      @Johnny Vegas
      And there is the problem. I'm due for a new phone with Verizon but don't want to get one yet because of the 4G/LTE roll out, but that won't happen until next year.
      Loverock Davidson
      • RE: Verizon CEO Seidenberg on iPhone, cord cutting, tiered pricing

        Hopefully we can put the iPhone rumor stories to bed now...Everyone knows that Jobs doesn't like anyone stealing his thunder, and if Verizon wants the iPhone, they have to play ball with Jobs and Apple, so the CEO isn't going to say anything BUT what he said, or Jobs will kill the deal. I'm not saying there is a deal, but if there is, Jobs is the one that will announce it, nobody else.
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        Amanda123456
    • cant skip CDMA just yet

      @Johnny Vegas

      Any phone that comes out for the next few years will have to support both LTE and EVDO/cdma as it will take a couple of years to get 100% LTE coverage, thus you will sometimes still need the legacy evdo and cdma networks.
      otaddy
    • RE: Verizon CEO Seidenberg on iPhone, cord cutting, tiered pricing

      @Johnny Vegas It takes a larger entity for the smaller person to tap into, but I'm not surprised that the idea was turned down. If there's not immediate benefit, then the budget admins will say NO.<br><br>On the large scale, Google & Sprint are setting up their Fiber networks while everyone else is still upgrading hardware. Their goal is to be prepared for the next step in high-speed Internet. The downside is that you would have to signup for their service (Sprint), or be in an area that the ISP offers service (Google). But for now, we sit and wait for another decade. <a href="http://www.arabaoyunlarimiz.gen.tr/kiz-oyunlari/friv-3.html">friv</a> <a href="http://www.kraloyun.gen.tr/yeni-oyunlar/">yeni oyunlar</a>
      Csika
      • RE: Verizon CEO Seidenberg on iPhone, cord cutting, tiered pricing

        This is like the Knicks getting Carmelo Anthony, you know. Like it would be really good if the Knicks got Carmelo Anthony but they have to play the game to get him. Right? So here is kind of like the way I would look at that. We have worked hard to make our network a destination for all the suppliers to develop devices and equipment. Because we think we have the best value proposition to attract customers. So that is our view.<a href="http://www.barquinphotography.com">maternity photographer Miami</a>
        mustafizrana
    • RE: Verizon CEO Seidenberg on iPhone, cord cutting, tiered pricing

      @Johnny Vegas Yup! ... because another CEO of a trustworthy company has made another statement too.

      These guys know what they're doing too.. the one thing you said I agree with that the "rumors" need to get put to bed - because they are just that.. AND, there really is no need to know the future; we live in the now anyway<a href="http://www.autos-clever.com/" rel="dofollow">.</a> If the iPhone comes, it comes.. if it don't, it don't.

      People spend way too much time trying to pin point down the future, sometimes to the exact date, prices, policies, etc.. why? <a href="http://www.auto-ready.com/">.</a>. why when they don't exist in the now.

      If, and when<a href="http://www.kroatien-urlaub.com.hr/" rel="dofollow">,</a> the iPhone comes to ANOTHER CARRIER (there are more than just Verizon obviously) then maybe it would be the time to talk about it, if that's even necessary.

      But, one thing for sure, just because a CEO said it doesn't always mean they're telling the truth either.. sometimes they like to play mind games in the media to also keep their competitors in the guess too.. it USED to be that having information known in advance was a good thing and was done often.. now, no one wants anyone to know until the day is upon us as it takes the competition by surprise.

      But really, in short - who really cares.. if it happens, it happens.
      freako112
    • RE: Verizon CEO Seidenberg on iPhone, cord cutting, tiered pricing

      @Johnny Vegas I'd rather see Apple pick up the other carriers and leave Verizon out in the cold. Let them eat Android. <a href="http://www.kraloyun.gen.tr" title="kral oyun" target="_blank">kral oyun</a> <a href="http://www.mario.gen.tr" title="mario" target="_blank">mario</a>
      EkoLLL
  • RE: Verizon CEO Seidenberg on iPhone, cord cutting, tiered pricing

    The reason AT&T got the iPhone franchise in the first place is that attitude that "Apple will get with the program.." Verizon's controlling nature and business model is an antithesis to Apple's. Apple wants to control its own ecosystem. Verizon wants to control every aspect of a cell phone. AT&T acquiesced to Apple and is about as carrier neutral as possible. I used to have Verizon and never used most of the features of my cell phones because I had to go through Verizon's expensive and convoluted model to get anything on it. I'd rather see Apple pick up the other carriers and leave Verizon out in the cold. Let them eat Android.
    dheady@...
    • RE: Verizon CEO Seidenberg on iPhone, cord cutting, tiered pricing

      @dheady@... The reason AT&T got the iPhone franchise in the first place is that attitude that "Apple will get with the program.." Verizon's controlling nature and business model is an antithesis to Apple's. Apple wants to control its own ecosystem. Verizon wants to control every aspect of a cell phone. AT&T acquiesced to Apple and is about as carrier neutral as possible. I used to have Verizon and never used most of the features of my cell phones because I had to go through Verizon's expensive and convoluted model to get anything on it. I'd rather see Apple pick up the other carriers and leave Verizon out in the cold. Let them eat Android. <a href="http://www.arabaoyunlarimiz.gen.tr/"><b>araba oyunu</b></a> <a href="http://www.kraloyun.gen.tr/yeni-oyunlar/">yeni oyunlar</a>
      Csika
    • RE: Verizon CEO Seidenberg on iPhone, cord cutting, tiered pricing

      @dheady@...
      Like it or not AT&T is one of the biggest cellular operators in the world and they can get any franchise they want. Moreover giving them the franchise also proved to be beneficial for Apple.
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      broom87
      • RE: Verizon CEO Seidenberg on iPhone, cord cutting, tiered pricing

        Yes, I do agree that cable companies are delusional on cord cutting and hinted that tiered pricing is around the corner but what to do as they are doing something monopoly. <a href="http://www.discountkitchenfactory.co.uk">kitchen units</a>
        mustafizrana
      • RE: Verizon CEO Seidenberg on iPhone, cord cutting, tiered pricing

        @broom87 They may be the biggest, but their reception certainly proves that they are the worst. Verizon will surely improve on this, and that is something. <a href="http://www.legitimateworkfromhomeopportunities.info">legitimate work from home opportunities</a> | <a href="http://www.largewallmirrorsite.com/">Large Wall Mirrors</a>
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