Verizon Executive Calls CDMA iPhone Inevitable - Mobile and Wireless from eWeek

Verizon Executive Calls CDMA iPhone Inevitable - Mobile and Wireless from eWeek

News Analysis: Michael Maiorana, a Verizon Wireless regional president, tells eWEEK the introduction of a CDMA Apple iPhone for the Verizon network is a matter of when, not if. While Apple didn't announce a Verizon iPhone at the Worldwide Developers Conference in June as was widely predicted, rumors continue to circulate from a number of sources that such a mobile device is in the works. Other rumors say T-Mobile will soon make a deal with Apple to sell the iPhone in the United States.

Verizon Executive Calls CDMA iPhone Inevitable WASHINGTON—The introduction of a version of the Apple iPhone for the Verizon Wireless network is not only possible, it is "inevitable," according to a Verizon regional president. In an interview with eWEEK at the National Press Club on June 14, Michael Maiorana, Verizon president for the Washington-Baltimore-Virginia region, said it was a matter of when, not if, Apple would release a version of the iPhone for the Verizon network. However, Maiorana declined to predict when a CDMA (Code Division Multiple Access) version of the iPhone suitable for the Verizon network would be ready for the market, saying he didn't want such speculation to hurt Motorola Droid sales during the summer. Maiorana's comments come as rumors continue to arrive from sources far afield that the companies that manufacture the subassemblies for Apple iPhones are acquiring the chips and other support hardware required to create a CDMA version of the iPhone. Some of these rumors indicate that a CDMA iPhone will be ready for shipment in November. However, Maiorana declined to confirm or deny that November was a target release date. While most of these rumors are third- and fourth-hand, there are enough of them that they can't be ignored. If these stories are true, and if they mean what they seem to mean, Verizon Wireless could be getting its own version of the iPhone in a few months. Meanwhile, there are analysts, such as Shaw Wu from Kaufman Bros., who suggest that T-Mobile could bring the iPhone to market this year or in early 2011. It could easily be that both T-Mobile and Verizon will carry iPhones. In fact, T-Mobile could bring the iPhone to the United States in a matter of weeks, assuming that an agreement could be reached with Apple.  The reason T-Mobile could move so quickly is that the company already sells the iPhone, just not in the United States. You can buy a T-Mobile iPhone in Europe easily, and it'll work just fine in the United States. In fact, calls to T-Mobile tech support managers have confirmed that the company will happily provision your European iPhone for U.S. use, and include all of the various features and applications that you'd normally get from any other T-Mobile phone in service here. T-Mobile will also provision your AT&T iPhone to run on T-Mobile as well, but that's another story.  News Analysis: Michael Maiorana, a Verizon Wireless regional president, tells eWEEK the introduction of a CDMA Apple iPhone for the Verizon network is a matter of when, not if. While Apple didn't announce a Verizon iPhone at the Worldwide Developers Conference in June as was widely predicted, rumors continue to circulate from a number of sources that such a mobile device is in the works. Other rumors say T-Mobile will soon make a deal with Apple to sell the iPhone in the United States. With Verizon, the process is more complex. There currently are no CDMA versions of the iPhone, so there's some necessary engineering that's involved. There will need to be FCC filings, tests, leaks to the media. And there needs to be time to make sure that the Verizon network will support the iPhone's voracious appetite for bandwidth. Adding to the complexity is the relatively limited availability of CDMA networks worldwide. A Verizon iPhone might not be able to take advantage of the other existing CDMA networks out there, primarily in Iraq, South America and southern India. Furthermore, 3G coverage is also not a given in those areas.  So why would Apple consider expanding to other carriers after tenaciously maintaining an exclusive deal with AT&T? Mostly because Android phones are starting to eat up market share that Apple wants. The Android phones might not have exactly the same coolness factor that the iPhone has (although some people would say they're cooler), but there's no question that these devices offer capabilities that the iPhone simply can't deliver. Worse, they're selling by the gazillion. This must be driving Apple nuts.  Adding to the exclusivity problem is that AT&T doesn't have the best reputation as a carrier. Despite the AT&T commercials claiming more 3G coverage than Verizon, the fact is, Verizon still has a substantially larger 3G network. In addition, there's also a belief among some iPhone users that AT&T's service isn't up to par, and iPhone users have long been plagued by dropped calls and poor signal quality. While much of this may not be AT&T's fault, that doesn't matter to users.  Ultimately, bandwidth is what matters to iPhone buyers. Now that AT&T has imposed bandwidth limits on iPhone users with new accounts, there's a significant disincentive for would-be buyers. Why saddle yourself with an extra hundred bucks or so of broadband fees just to use the device in the manner in which it was intended? Neither Verizon, which has widespread, but not very fast, 3G nor T-Mobile, which has 3G that's as fast as or faster than Sprint's 4G, but which isn't as widespread, have usage limits. In addition, Verizon is well along with its LTE (Long Term Evolution) implementation, which could bring broadband speeds triple those of Sprint's network. But really, could it happen? Yes. And it could happen before the end of the year. This is especially true for T-Mobile, where all that's required is an agreement with Apple. T-Mobile, after all, is really just a trade name for Deutsche Telekom, the German carrier that's far larger than either AT&T or Verizon, has a global presence and already carries the iPhone. It would be very difficult for Apple to say no.  And Verizon has both the reach and the existing bandwidth in the United States to give the iPhone room to grow, something that AT&T really doesn't have now. In addition, both T-Mobile and Verizon are hotbeds of Android activity. Where better to put an iPhone?

Between the Lines from ZDNet.com: AT&T's Really Bad Week (and I Still Can't Have an iPhone with Verizon Wireless.)

I WANT an iPhone. I DON'T want AT&T. I had an iPhone when they were first released. I actually returned it. Yes, me, the Apple pusher, the Mac manic, the one who would never turn away an Apple product actually returned an iPhone — because it was useless to me without my wireless provider.

June 12th, 2009

AT&T's really bad week: The network reputation hits keep coming

Posted by Larry Dignan @ 3:42 am

It’s safe to say AT&T is ready for the weekend. The telecom giant has had a horrid week with a backlash against iPhone 3G S and complaints about the network. The latter item may create the most lasting damage.
For now, much of the focus is on AT&T’s upgrade pricing for the iPhone 3G S. Simply put, if you want the new iPhone and you’re still under contract you won’t get it for $199. You’re on the hook for $399. Apple iPhone fans, the types who are used to upgrading when a new device is available, are pushing a Twitter petition. AT&T informs folks that it is listening to the complaints.

Lost in this hubbub are the anecdotal signs that the reputation of AT&T’s network is taking a hit. When the Apple-AT&T exclusive iPhone deal ends we may learn that AT&T emerged with its reputation in tatters. A bad reliability reputation will last well beyond the iPhone exclusive. Let’s recap the signs that AT&T’s network is becoming a punch line:

• As reported by Sam Diaz, WWDC attendees chuckled when AT&T was mentioned at the iPhone 3G S launch. Apple was laughed at when it was mentioned that AT&T would support MMS. AT&T wasn’t mentioned in the same sentence with tethering. And you know that “S” is a joke waiting to happen. Speed? Try slow.

• AT&T promises a significantly faster network. That’s good news for iPhone users. The bad news: It’s an admission that AT&T can’t handle the iPhone traffic and is slow about upgrading its network.


• Verizon Wireless is deftly taking advantage of AT&T’s network troubles. Last month, Verizon Wireless chief Lowell McAdam said that AT&T’s “ceiling for their network will be the floor for our network.” McAdam called AT&T’s announcement on its network upgrade old news—about a year old. He also noted AT&T’s promises to upgrade speed are spin.


• Even Howard Stern, who chose a BlackBerry Bold over the Palm Pre, notes that he can’t make calls on AT&T’s network without being dropped repeatedly. Stern’s sidekick Artie Lange—and others on staff—mention that Verizon Wireless is flawless. Verizon Wireless usually has to pay for a commercial like that.

And the hits just keep coming. Don’t be surprised if Jay Leno and David Letterman start knocking AT&T in monologues. It’s not immediately clear how AT&T can counter the perception that its network can’t hang with heavy data usage, but it better figure out something quick.
It’s nice that AT&T is listening to the iPhone pricing backlash, but it may be focusing on the wrong problem.

Larry Dignan is Editor in Chief of ZDNet and Editorial Director of ZDNet sister site TechRepublic. See his full profile and disclosure of his industry affiliations.

Email Larry Dignan

meh.

Sad News from Apple Regarding iPhone and Their Wireless Service.

Oh Apple, WHY, WHY…why couldn't you add Verizon Wireless on in 2010?

Now me and my Palm Treo are stuck together until it dies. After that, I'll have to get another Verizon product. I can't switch to AT&T, Apple. I don't know a damn person on the network. All my family and friends use Verzon, so my calls are all free. Why would I switch and pay? Because I love your iPhone? Yes, that's a valid reason, IF I COULD AFFORD IT.

I've had everything Apple but an iPhone. Wait, that's a lie. I had an iPhone for a week or so. I returned it because I refused to switch to AT&T.

Reading this entry below from WIRED's blog made me want to scream. Last week, there was a glimmer of hope. It's gone now.

Apple: We're Sticking With AT&T for the iPhone

By Brian X. Chen April 22, 2009 | 5:18:04 PMCategories: Apple, IPhone  

Apple on Wednesday said it has no plans to discontinue AT&T's exclusive rights to carry the iPhone in the United States.

Apple chief operating officer Tim Cook expressed confidence in AT&T as its exclusive U.S. partner, despite Piper Jaffray analyst Gene Munster's suggestion that the No. 1 reason consumers resist buying an iPhone is because of AT&T.

"We believe they're the best wireless provider in the U.S.," Cook said of AT&T during Apple's quarter-two conference call. "They put the full force and weight of their company behind it. We're very happy with the relationship we have and do not have a plan to change it."

Though the terms of Apple's contract with AT&T remain a secret, many sources have said AT&T's exclusivity over the iPhone expires in 2010. Excited by this rumor, many consumers have been discussing the possibility of the iPhone being available for the Verizon network. Verizon CEO Ivan Seidenberg last week speculated that a deal with Apple will be more likely when Verizon rolls out its 4G network next year.

However, Cook on Wednesday suggested it was unlikely for Apple to work with Verizon anytime soon. He explained Verizon's network is on the CDMA standard was limited, and AT&T was a better choice because it utilizes the widely used GSM network.

"We chose from the beginning of the iPhone to focus on one phone for the whole world," Cook said. "CDMA doesn't really have a life to it after a point in time."

This news will undoubtedly disappoint some Verizon customers who are itching for the iPhone but refuse to switch to AT&T.

"I would buy two iPhones in an instant if they were available on Verizon," commented reader "MikeE" in a recent Gadget Lab story. "I will never change to AT&T. I have been using Apple products since 1984 but the iPhone is missing."

For more on Apple's second-quarter earnings report, read Epicenter's report.

See Also:

• 4 Reasons Apple Should Share the iPhone With Verizon
• AT&T Seeks to Extend iPhone Deal to 2011: Report
• AT&T Beefs Up 3-G Network Ahead of Next-Gen iPhone Launch ...