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Rumor: Verizon to Carry the iPhone

TMCnews Featured Article


April 27, 2009

Rumor: Verizon to Carry the iPhone

By Michael Dinan, TMCnet Editor


Rumors that IT industry experts say should frighten AT&T terribly are emerging, as talk resurfaces that Verizon could emerge as a carrier for Apple Inc.’s iPhone.

 
Citing unnamed sources, Leslie Cauley of USA Today reports that as early as next year, AT&T (News - Alert) may no longer serve as the sole carrier for the landmark touch screen device in the United States. Right now, AT&T’s GSM technology supports the iPhone. If the rumors are true, Apple likely would produce a new model so the iPhone could operate on Verizon’s (News - Alert) CDMA wireless network, Cauley reports.
 
“The New York-based telecom (Verizon) entered into ‘high-level’ discussions with Apple management a few months ago, when CEO Steve Jobs (News - Alert) was overseeing day-to-day business, (people familiar with the situation) say,” Cauley reports. “They declined to be named because they aren’t authorized to speak publicly.”
 
Dallas-based AT&T is said to have exclusive U.S. distribution rights to the iPhone (News - Alert) into 2010, following a 2006 deal, when the device was in its early stages of development.
 
No one knows if the rumors are true, but a Verizon-supported iPhone could spell disaster for AT&T.
 
As TMC President Rich Tehrani (News - Alert) writes, AT&T’s recent earnings report reveals how heavily the company relies on its iPhone business.
 
“Oh, and here is an interesting thought – remember I mentioned AT&T may have to embrace Skype if it loses its lock on the iPhone?” Tehrani writes. “Well, the time to start embracing Skype may be today as Verizon Wireless already allows Skype use on its network regardless of device.”
 
The rumors, which have circulated for months, have a ring of truth to them and help make sense of AT&T’s recently disclosed plan to double the capacity of its 3G networks.
 
AT&T Mobility’s vice president of technology realization, Scott McElroy, reportedly said that the company is increasing the downlink capacity on its high-speed packet access from 3.6 megabits per second to 7.2 Mb/s through software upgrades at its base station.
 
iPhone users are craving that kind of upgrade. As Tehrani, who regularly writes about the device on his blog, says, a Verizon-supported iPhone could have the advantage of offering not only better access and coverage, but also the ability to use VoIP.
 
“Then again, Verizon may have to pay so much money to have access to the iPhone that they may change their policy about VoIP calls as well,” he writes.
 
TMCnet is following this story closely. Check back in for developments.
 

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Michael Dinan is a contributing editor for TMCnet, covering news in the IP communications, call center and customer relationship management industries. To read more of Michael's articles, please visit his columnist page.

Edited by Michael Dinan