Can Apple hear Verizon now?

April 30, 2009, 8:30am PDT | Length: 00:01:43
ZDNet Senior Editor Sam Diaz talks about the rumors circulating that Apple is in negotiations with U.S. wireless providers other than the exclusive carrier of its iPhone, AT&T. Diaz says Apple can't ignore the money that could potentially come from Verizon Wireless' pool of roughly 86 million customers.

Transcript

Can Apple hear Verizon now?

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>> The Apple rumor mill is buzzing about talks that would bring the iPhone to the Verizon Wireless network which is great news in the U.S. for people like me who have iPhone envy but just aren't willing to make the switch to AT&T. With the exclusive AT&T deal set to expire next year Apple's in a good position to open negotiations with other carriers for a few reasons. First the numbers, Verizon has more than 86 million customers in the U.S. compared to the 78 million or so on AT&T. With analysts already predicting flat iPhone sales you can't help but wonder what the numbers might look like with the other big U.S. carrier on board. Second, the App Store continues to gain momentum for Apple. Beside for non AT&T customers who are using an iPod Touch to download apps there's a pretty large untapped market there. Finally there's the network Apple has said that it wanted to build a phone for the world and that's why it chose AT&T's GSM technology over Verizon's CDMA. But that argument falls apart when you consider how BlackBerry, which now offers an App's Store of its own developers devices for both technologies. Analysts see the iPhone as one of Apple's sweet spots for growth in the coming years and while AT&T is sure to dangle some money in front of Apple to extend the exclusive deal you can't ignore the money that could come from Verizon's pool of 86 million potential customers not just for the device but also for apps, music and more. Apple should open the iPhone to other carriers starting with Verizon. It's nothing personal against AT&T it's just smart business.

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Talkback Most Recent of 7 Talkback(s)

  • Verizon and IPhone
    I have been a Verizon customer for over 10 years (back to LA Cellular days). I have 4 cell phone accounts and do not want to change to AT&T. But I have been wanting an IPhone since the came out and have been hoping for this to happen. I will probably be one of the first customers to buy one as soon as an agreement with Verizon can be made! I know I am only one of many.
    ZDNet Gravatar
    MaryU@...
    1st May 2009
  • Same here
    Like I've been a customer of Verizon since The LA Cellular days as well and while I've been temped to switch to AT&T just to get an iPhone, I just couldn't bring myself to do it. I also have 4 phones (wife, son, daughter and myself) on Verizon. I know I would be one of the first to buy an iPhone if Verizon and Apple made a deal. It would be a dream come true. I knew that once the exclusivity contract with AT&T expired there was a chance it could be offered to other carriers and I'm hoping this happens with Verizon first. Yes, I've been patient, so I hope it happens!
    ZDNet Gravatar
    fabioq@...
    11th May 2009
  • RE: Can Apple hear Verizon now?
    This is a no brainer. I am also a Verizon customer. I've been
    holding onto an old phone, waiting for the iPhone to break
    free of AT&T. I too would buy an iPhone if I could use it on
    Verizon.

    I look forward to the day when American wireless providers
    have to compete like the ones in Europe, where you can by
    one phone and just swap cards to move from one provider to
    another.
    ZDNet Gravatar
    kathleen_Gresham@...
    8th May 2009
  • RE: Can Apple hear Verizon now?
    I wouldn't give two cents to Apple. They made the choice to be exclusive with AT&T. Most other cell phone manufacturers make devices for ALL the major cell providers.
    I'll stick with by Blackberry. It may not have all the apps but it does what I need it for.
    Apple picked a poor provider as I have seen a friend have no bars in a major metro area when I have three.
    ZDNet Gravatar
    jahoobob
    8th May 2009
  • Reason Why Apple Went w/ATT
    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.
    ZDNet Gravatar
    j-sun
    24th Jun 2009
  • RE: Can Apple hear Verizon now?
    y aren't people willing to change to AT&T??

    Verizon's technology isn't useful AROUND THE WORLD
    and even if Verizon is the largest in USA
    AT&T is the LARGEST AROUND THE WORLDD

    soo.. people should just switch to AT&T with over-roll
    and etc.
    it's a better deal
    ZDNet Gravatar
    HiLoTurtle
    28th Jun 2009
  • What ever happened to Tmobile?
    Thought I read that Apple signed Tmobile in Germany as the carrier of choice. Was hoping that meant that Tmobile here in the states was going to get it.

    DANG YOU APPLE!!!!
    ZDNet Gravatar
    mrewald
    27th Aug 2009

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