Rumor: Apple May Switch From AT&T to Verizon as Official iPhone Carrier

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Date: Wednesday, October 28th, 2009, 08:51
Category: iPhone, News, Rumor

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Should Apple end its exclusive carrier agreement with AT&T next year, it will likely mark the end of its estimated US$450 carrier subsidy for the iPhone, a new analysis has forecast.

Per AppleInsider, analyst Brian Marshall with Broadpoint.AmTech said that the “sweetheart” carrier subsidy provided by AT&T for the iPhone would not be attainable with Verizon. According to Marshall’s note to investors, the analyst believes that the iPhone will be added to the Verizon network in the second half of 2010, but not without consequences.

A non-exclusive iPhone, Marshall forecast, would command roughly a US$300 carrier subsidy. But he believes that any losses would be made up in volume, as Verizon is predicted to sell roughly 14 million iPhones in the 2011 calendar year. With an average selling price of around US$500, which would account for another US$7 billion in revenue for Apple.

“While AAPL started off with exclusive arrangements in 2007 with the original iPhone launch, the company has since migrated towards multiple carriers per region,” the note said. “In our view, diverse carrier support is a key element to driving global penetration of the iPhone (from ~3% share today of the total handset market). Therefore, we believe the chances are high the iPhone will find its way onto the VZ network in 2H10.”

Marshall’s assumption of 14 million Verizon iPhones is based on the performance Apple has had on AT&T’s network. Within six quarters of the iPhone’s launch, the handset has become 4% of AT&T’s postpaid subscriber base.

In the September quarter, the iPhone was said to represent more than 90% of AT&T’s total postpaid additions — an increase from 57% from a year earlier, and 33% in September 2007. It is based on the strength of the iPhone that AT&T has posted subscriber gains on market leader Verizon, adding 2 million customers last quarter to Verizon’s 1.2 million.

AT&T activated a record 3.2 million iPhones last quarter, of which nearly 40% were customers new to the wireless carrier. But CEO Ralph de la Vega also predicted that the iPhone will not remain exclusive to AT&T forever, though he believes his company’s portfolio will remain strong after the device jumps to other carriers.

T-Mobile, Orange May be Arranging to Sell iPhones to UK Marketplace

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Date: Tuesday, July 14th, 2009, 04:56
Category: News

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Across the pond, wireless carrier O2′s exclusivity deal within the UK marketplace may be coming to an end within the next few months. According to MacNN, competitor T-Mobile stated that it’s already in negotiation with Apple and could begin carrying the iPhone 3G within a matter of months. The iPhone 3GS has not been mentioned by T-Mobile so far, nor is it said to have been brought up by Orange, also rumored to be pushing for UK sales.

Like the United States, the UK has had only one official iPhone carrier since 2007, in spite of an increasing number of foreign countries hosting multiple carriers. The existence of competitive iPhone providers is thought to be beneficial to both Apple and the public, driving down prices and forcing carriers to bend to Apple’s restrictions. For carriers however the open market can hurt profit margins, and invalidate millions in currency paid to secure exclusive rights.

Multiple US carriers may not arrive until at least 2011, when LTE (4G) networks are slated to go live through AT&T and Verizon.

Rumor: Apple Could be Developing iPhone Lite, “Media Pad” for Summer Release

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Date: Wednesday, April 29th, 2009, 08:18
Category: Rumor

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It came from the very depths of Rumorville, but it’s interesting stuff.
Per BusinessWeek, two anonymous sources have stated that Apple and Verizon may release two new Verizon-exclusive iPhone-like products as early as this summer.
The rumors go hand-in-hand with recent talk that the iPhone is coming to Verizon, and that Apple has new devices up its sleeve for the summer.
The first device has been described as an iPhone nano of sorts and may function as a smaller, less expensive iPhone handset. The “iPhone Lite”, as it’s been coined, is smaller and thinner than the existing iPhone and will come cheaper because it “relies on a so-called system on a chip, which incorporates many types of chips and drives down the cost of silicon in such devices.”
The other device is a “media pad” which features the same functionality as an iPod Touch – music, games, photos – but with HD video and calling ability via a Wi-Fi connection.
The sources told Business Week that the device will be smaller than Amazon’s Kindle 2 ebook reader, but feature a larger touchscreen, paving the way for more speculation about Apple entering the eBook market.
“The media pad category might go to Verizon,” a witness told Business Week. “We are talking about a device where people will say, ‘Damn, why didn’t we do this?’ Apple is probably going to define the damn category.”

Rumor: Apple, Verizon in Talks for 2010 iPhone

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Date: Monday, April 27th, 2009, 08:34
Category: Rumor

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Despite its exclusive contract with carrier AT&T, Apple is now claimed to be in discussions with Apple for its own version of the iPhone in 2010.
According to USA Today, anonymous sources familiar with the negotiations stated that Verizon reportedly entered serious talks before Steve Jobs’ hiatus and has been continuing those talks even with Jobs temporarily sidelined for medical reasons.
Other than a 2010 target release window, little else has been divulged by the apparent insiders.
Though not explicitly stated, the article infers that the phone would be a CDMA device compatible with Verizon’s existing network and therefore using EVDO for its 3G Internet access. Such a move would give the phone broad coverage but directly contradicts Apple COO Tim Cook’s own dismissal of CDMA last week. During a previous speech regarding iPhone expansion plans, the executive justified the absence of a CDMA model by arguing that a single, GSM phone model is easier to produce than building a separate version for a relatively small batch of customers. Cook also sharply criticized CDMA by asserting that it has no future, as most CDMA carriers plan to phase out the calling technology in favor of the same 4G standard that will be used on GSM networks.
A direct leap to a 4G seems more liekly and Verizon chief executive Ivan Seidenberg recently explained that a deal is more likely for a phone with the advanced networking technology as it would let Apple continue making one phone but still service North American carriers that are for now off limits.
Verizon has stated that it plans to officially launch its commercial 4G network in early 2010 and would therefore have at least some of its network ready for an iPhone by the time AT&T’s exclusivity term ends, which is likely for the same year.

Verizon CEO Claims iPhone Deal More Likely with 4G Network in Place

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Date: Friday, April 17th, 2009, 07:20
Category: iPhone

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Even though Verizon snubbed Apple when iPhone wireless carriers were initially being chosen, Verizon’s chief executive Ivan Seidenberg has now stated that the chances of an iPhone on the company’s network will be improved once 4G technology is in place.
The CEO explained to the Wall Street Journal on Thursday that Apple is ‘more likely’ to want to work with Verizon due to the wider distribution of the 4G standard it will use to supplement, and eventually replace, its 3G network.
Per Seidenberg, Apple was never likely to create an iPhone handset suitable to Verizon’s existing network due to the company’s choice of CDMA standards. While CDMA and its matching EVDO data format are very popular among carriers in North America and are shared with Alltel, Bell, Sprint and Telus (among others), the standards have very little reach outside of the continent. Choosing CDMA may have forced Apple to make a second iPhone model just to accommodate the rest of the world, which has settled on the more popular GSM and HSPA protocols.
This problem disappears with Verizon’s move towards Long Term Evolution (LTE) for 4G. Unlike the artificial split between North America and the rest of the world today, a large number of both domestic and international carriers plan to move to LTE within the next few years, including AT&T and T-Mobile USA.
Seidenberg has claimed that the network may or may not be the sticking point and the discussion remains up for debate. Verizon is believed to have snubbed Apple early on when the handset was initially being developed. Just after the introduction of the first iPhone, the carrier spun its apparent loss by claiming that Apple wanted too much control over sales and service. Observers have also speculated that Verizon objected to being denied a chance to customize the interface and choose which features to allow.

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AT&T Pushing for Exclusive iPhone Rights Through 2011

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Date: Wednesday, April 15th, 2009, 08:35
Category: iPhone

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After three years of holding exclusive rights to the iPhone, AT&T is looking to take one more shot at an exclusive deal for the Apple handset and may keep it away from competitors until 2011.
According to the Wall Street Journal, “people familiar with the matter” have stated that AT&T has a deal to keep the iPhone in its stable until 2010 and that negotiations are underway to have the device onboard for one more year.
Though there has been no specific commentary from AT&T regarding this, an Apple spokeswoman would only say that the two companies have a “great relationship.”
The commentary follows a report from last year that also said AT&T had struck a deal to keep the iPhone until 2010 and may provide insight into current talks. At the time, the cellular carrier reportedly agreed to allow iPhone 3G subsidies in exchange for a one-year extension of the iPhone’s US exclusivity. Although the cost of discounting those phones has been severe — as much as US$1.3 billion to date, according to an estimate — the agreement renewed interest in AT&T and gave it millions of users paying at least US$60 per month (on grandfathered plans) for service.
Should AT&T be allowed to keep exclusive rights to the iPhone, it would be able to help prevent customers from jumping ship to Verizon or an alternate carrier at a time when the market is saturated and customers are more likely to have switched than sign up for the first time. The company added 1.9 million iPhone users just in the fall 2008 quarter alone.

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Sprint to Deploy WiMAX Networks in 10 U.S. Cities Throughout 2009

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Date: Wednesday, March 25th, 2009, 14:00
Category: News

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Telecommunications giant Sprint has announced plans to deploy WiMAX services in 10 major cities throughout 2009, with at least five additional major markets due to get services in 2010.
According to Macworld, the company plans to deploy services to Atlanta, Charlotte, Chicago, Dallas, Fort Worth, Honolulu, Las Vegas, Philadelphia, Portland, and Seattle. The comapny also expects to launch WiMAX services in Boston, Houston, New York, San Francisco, and Washington, D.C. throughout 2010. Sprint’s WiMAX services are only available currently only available in Baltimore, where Sprint kicked off its nationwide WiMAX deployment last September. Comcast, one of Sprint’s partners in the Clearwire WiMAX coalition, recently announced that it planned to start reselling WiMAX services from Clearwire sometime this year.
Sprint’s WiMAX division, now referred to as “Sprint 4G”, has stated that it plans to release several new WiMAX devices in 2009 and 2010, such as a single-mode WiMAX data card, WiMAX-embedded laptops and a small-office WiMAX broadband modem. The company’s currently offer peak downlink speeds of 12Mbps and average downlink speeds between 2Mbps and 4Mbps.
Through the release of WiMAX services in major cities, Sprint is looking to stay ahead of rival carriers AT&T and Verizon, which each plan to launch their own 4G mobile data services based on Long Term Evolution (LTE) in roughly two years’ time. The LTE standard is the latest variation of Global Systems for Mobile Communications (GSM) technology and is seen as the natural progression of High-Speed Packet Access (HSPA), the GSM technology that is currently used by carriers such as AT&T to deliver 3G mobile data services.
If you’ve seen any Sprint WiMAX network prep work taking place in your city, let us know in the comments or forums.

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