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Reason Why Apple Went w/ATT

j-sun 24th Jun 2009

I was told from several Verizon insiders this...Apple had originally 1st proposed going with Verizon all along, but Apple tried to dictact how much profit they kept from the apps that get downloaded: 75% for Apple. Verizon told them noway they would only receive 25% of the profits as it was going to cost a lot of $$ to maintain and update the network, as well as the bottlenecks it creates from all the bandwidth it goggles up (and not at the expense of hurting business data customers). Apple went to ATT instead, not considering long term the effects it would have since the ATT data network is nowhere as fast and bigger nationwide than Verizons. There lies the problem people have...the ATT network can't handle it and since they aren't making much money on it, it's actually costing them $$ with network maintenance. Don't expect the iPhone on Verizon unless Apple is more flexible around the negotiating table.