More Verizon talk from the NYTimes

Seth Weintraub
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April 24, 2009
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People want this Verizon thing to happen so badly that the story just won't die.  Today, it is the NYTimes' turn.

We're not sure if the NYTimes understands the complexity involved in building a CDMA iPhone.  We can't exactly tell the time frame of this statement but they seem to think Verizon's CEO can waltz into Cupertino with a wad of cash and get the iPhone. 

So expect Mr. Seidenberg to come to Cupertino, checkbook in hand, to see what sort of deal he can make.

All things being equal, Apple has a modest incentive to expand the distribution of the iPhone as much as possible. The greatest number of users means the greatest number of customers for its iPhone Apps store. Moreover, the iPhone brings new people into the Apple ecosystem and makes them more likely to buy a Mac, an Apple TV or an iPod.

If they mean in 2011 when the LTE rollouts will start to pick up steam, perhaps.  Probably even. But for the next two years, it would seem Verizon is out of the picture.

Here's our little suggestion: Apple creates a CDMA data iPod Touch.  Limited run, maybe 1 million units.  Allow Verizon and Sprint to sell it on their network with Data-only plan.  $60/month, reasonable data caps with tethering.  With Skype/Vonage/Truphone or whatever for voice.  Verizon and Sprint could even create their own little VoIP app upsell if they wanted to try to compete. 

We'd jump on board in a heartbeat.

Will never happen of course.  Verizon's open access plan was never meant to be that open.

 

Comments (15)

powers | April 24, 2009 - 8:33am

Yeah, that article is definitely a huge croc.

9to5Mac Noob (not verified) | April 24, 2009 - 8:50am

You would know that making just a million of anything doesn't even come close to making any sense.

123 Fake Street (not verified) | April 24, 2009 - 9:54am

I can't tell you how terrible the AT&T service is in New York (a big market, obviously, and a place worth getting it right).

The internet service is even ok on the AT&T platform here, but the phone service is constantly interrupted.

Apple would pick up a big share of the market here if they opened it up to more reliable options like Verizon.

9to5Mac Noob (not verified) | April 24, 2009 - 11:31am

I can see this kind of thing hurting Apple. a lot can happen in two years. the market could and probably will completely change. weather or not that is in favor of Apple no one will know till then. But this is truly a wasted opportunity to grab market share and establish themselves As if i have to wait two years for the iPhone to come to Verizon. even know i am a loyal mac user. i will become loyle to another brand!

9to5Mac Noob (not verified) | April 24, 2009 - 11:42am

Making a CDMA version of any phone is not as difficult/costly as you might think. There is real possibility that there will be a CDMA iPhone in the future since Verizon is the single largest carrier in the US (80M+ customers) and their CDMA network will be around for at least another 6-10 years. Verizon will not switch to 2G GSM (TDMA based garbage). They are upgrading to a network that will consist of CDMA2000(2G,3G) and LTE(4G).

To get access to Verizon's 80M+ customers Apple will need to make a CDMA200 ev-do/LTE phone. Plus, remember, Apple talked Verizon first and Verizon has probably learned their lesson.

9to5Mac Noob (not verified) | April 24, 2009 - 12:27pm

I have been talking with AT&T today about how the heck I can get better reception. I live in the Atlanta, GA city limits, but at my house the reception is 1 bar at best, often "NO SERVICE". AT&T advises switching to 2G (they claim the towers near me are great for 2G but not 3G). It's crazy! I love my iPhone but AT&T is a joke.

9to5Mac Noob (not verified) | April 24, 2009 - 12:28pm

I have been talking with AT&T today about how the heck I can get better reception. I live in the Atlanta, GA city limits, but at my house the reception is 1 bar at best, often "NO SERVICE". AT&T advises switching to 2G (they claim the towers near me are great for 2G but not 3G). It's crazy! I love my iPhone but AT&T is a joke.

9to5Mac Noob (not verified) | April 24, 2009 - 12:30pm

The "they approached Verizon first" seems to be turning out to have simply been Apple's ploy to get AT&T to agree to their terms. Which makes sense. I've read Alcatel-Lucent has developed a technology to enable CDMA and LTE to work together on the same network. Here's a couple links from UnStrung referencing it: http://www.unstrung.com/document.asp?doc_id=174489

http://www.unstrung.com/document.asp?doc_id=174571&f_src=unstrung_sitede...

Perhaps 2011 at best for us Verizon'ers. I'll wait.

9to5Mac Noob (not verified) | April 24, 2009 - 12:44pm

I remember a year or so ago Apple had a job posting for a CDMA engineer, but I guess they must've scrapped those plans

ddTaylor | April 24, 2009 - 1:10pm

The article makes sense from a business stand-point, hence the reason Apple will not do it.  They went with the WORST service provider in ATT for domestic iPhone sales - and the ability to sell overseas, which I understand (by way of GSM - a more universal standard).  What I do NOT understand is how other cell phone menufactures can produce both a CDMA and GSM version of phones and smart-phones while Apple is drastically reducing their marketshare here in the United States.  I do not understand why Apple does the things it does - but what ever they do, it keeps on working.  I wish they had a little more respect for the customer, of whome I am one of...not just with a couple of iPhones but a MBP, MB, iMac and PowerMac for my office. 

 

In the end, the consumer may get an easier buyer experience through one cell provider hence less confusion over the packages offered with multiple companies - but the consumer is the one who truly gets it without choice.  Make no mistake, I enjoy using my Apple products and do not own a single non-Apple computer related product - but I feel they could offer the consumer more choice without diminishing their high-standards and service.

 

D

I am a HAM - and it is COOL, not antiquated.

Peruchito (not verified) | April 24, 2009 - 10:13pm

didn't they say the same thing last year?

9to5Mac Noob (not verified) | April 25, 2009 - 4:30am

CDMA is dead-end technology. Can't see Apple being interested. More networks need to move forward in USA - to full 3G and 4G networks. However, some of the networks don't want to move forward as more capable data links will mean the end of the voice "monopolies" the teleocs have enjoyed and from which they have extracted much profit. Mobile data enables mobile VOIP - leveling the playing field on comms across the world.

9to5Mac Noob (not verified) | April 25, 2009 - 8:05am

ev-do is 3G (for CDMA) and it often beats out HSDPA in real world applications (in the US, europe uses a faster version of HSDPA).

9to5Mac Noob (not verified) | April 25, 2009 - 7:08am

It's pretty easy to calculate out the gross losses to Verizon due to AT&T's exclusive iPhone deal.

We know the market share of Verizon. We know AT&T's conversion rate. We know the number of AT&T iPhone subscribers. We know the baseline monthly bill. So I think we can fairly predict the deal's value to AT&T.

Calculating all this out seems to me that AT&T is grossing roughly $1.9 billion more a year from customers that were formerly Verizon customers. And obviously, that means Verizon is no longer bringing in any money from those former customers. No wonder Verizon is in an absolute panic. If this market continues to grow for AT&T, Verizon is going to see a substantial negative line item in its earning report called "losses due to iPhone".

9to5Mac Noob (not verified) | April 26, 2009 - 5:24am

When does the "exclusive" part of ATT contract with Mac end? The guys at Apple are pretty smart, so my guess is that they have been working to be ready to take advantage of their new found freedom. I also want to see a very slick 10 inch micro laptop (hopefully with a real keyboard) to talk with the iphone for business AND education.