Why the Verizon iPhone Doesn’t Spell Disaster for AT&T

Could it be true? Is Verizon REALLY fianally getting the iPhone this time… really? According to Mashable.com, even if they do, it won’t mean the end for AT&T. Some customers won’t be able to afford to jump ship and others may not want to do so. As for me, I’m not getting out of my contract until AT&T gets the iPhone 5 and launches their 4G network! If they make it worth my while and one has to assume that a Verizon competition will do just that, I could come out ahead. Oh, and if AT&T gets their 4G network right, it’s a wrap for me… I’m staying put. All eyes are on this new deal… let’s see what happens.

Amplify’d from mashable.com

Verizon is about to deliver a blow to AT&T when it ends the network’s exclusive hold on the iPhone, but it definitely won’t be the end of the world for the second largest carrier in the U.S.

Earlier this week, Verizon announced a press event next Tuesday in New York City. All signs indicate that Verizon will introduce the iPhone on its network and launch it in the next few weeks. At this point, nobody should be surprised: it’s Apple’s worst-kept secret.

Since the news broke about Verizon’s event, there has been no shortage of media reports about the potential negative impact of the Verizon iPhone on AT&T. Some of it has devolved into (justifiable) AT&T bashing, and some predict that it’ll be a major or even mortal blow to the nation’s second largest network.

Let’s take a step back and keep some objective perspective, though. While the Verizon iPhone will have a negative impact on AT&T, it’s not going to break AT&T’s back. The network has been preparing itself for the loss of its iPhone exclusivity contract for a long time. It’s ready to do battle with Verizon.


Huge Switching Fees


While a group of early adopters are likely to burn their contracts and switch to Verizon on day one, the vast majority of people will not. The reason is that the switching costs are simply too high.

AT&T made a smart business decision last year: they bumped up the iPhone’s early termination fee. If consumers want to switch, the first fee they will have to pay is the ETF, giving AT&T even more money to pad its profits.

The second fee is the cost of the Verizon iPhone. The AT&T iPhone 4 is based on UMTS 3G technology, while the Verizon iPhone will be based on Verizon’s CDMA 3G tech. The result is that consumers will have to buy a new iPhone and a new contract. While they can sell their AT&T iPhones, it won’t offset the cost of a new contract and it definitely won’t offset the cost of that early termination fee.

While some consumers can afford to switch, the vast majority don’t have that kind of money and are on family plans that they won’t abandon immediately.

There is at least one more switching fee for AT&T users who want to jump to Verizon: the switch from UMTS to CDMA. UMTS is a more prevalent 3G standard for a simple reason: it’s a better technology. AT&T actually does have the fastest 3G network in the U.S. and it does have the advantage of being able to send and receive data and voice at the same time, while the Verizon iPhone will not be able to do data while on a phone call.


We May Hate AT&T, but It Has a Response Plan


Of course, people will rightly point out that a faster 3G network means nothing if you can’t even connect to 3G in the first place.

Verizon has a lot of advantages over AT&T. It has the largest 3G network coverage in the U.S. More importantly, it doesn’t have the distinction of being the nation’s most despised wireless carrier. I basically gave up on my iPhone at CES in Las Vegas this week and relied on my Verizon Droid 2 instead. It’s utterly embarrassing that AT&T still has these kinds of problems over three years since the iPhone’s debut.

Oh, and the Verizon iPhone will reportedly offer unlimited data as a slap in AT&T’s fast.

That’s not enough to take down AT&T though, and the carrier is ready to fight back against the Verizon iPhone threat. When the iPhone 5 rolls out sometime this summer, both networks will pull out all the stops in order to get consumers. Price cuts, heavy advertising and incentive offerings will be plentiful later this year. Verizon is going to take some AT&T customers, but it won’t get them without a fight.

At the same time, AT&T is stocking up on some powerful phones to complement the iPhone. Motorola debuted the ATRIX 4G at CES last week, a 1GHz dual-core processing beast that sports a 960×540 qHD screen, a 1,930mAH battery and a full GB of RAM. It even has a dock that lets you use your Android phone and a full version of Firefox on the same screen.

It was the best phone to debut at CES, and it is exclusive to AT&T.

The carrier will try to pull away happy Android phone users from Verizon and other networks with competitive contracts and a new line of ridiculously powerful phones. With phones like the ATRIX, Verizon won’t be having all the Android fun.


The Bottom Line


The bottom line is that AT&T isn’t going to be hemorrhaging users on Verizon iPhone launch day due to switching costs, and AT&T has strong profits and a strong line of phones coming to market this year that will keep it competitive, including the iPhone.

The Verizon iPhone isn’t likely to change the fate of either company. Instead, the future of both carriers will depend on the speed and strength of their 4G network rollouts. Verizon has started its 4G rollout and AT&T will begin its 4G launch later this year. AT&T’s past sins could be forgiven if it succeeds in rolling out a reliable 4G network, but failure could cement its rather poor reputation.

Yes, the Verizon iPhone will negatively impact AT&T. However, to say that it will put AT&T on the ropes is just silly. The intense battle between these two carriers is going to play out for years to come, and both have tricks up their sleeves that will continually change the rules of engagement.

Read more at mashable.com

 

Move over Apple, you may not be the sexiest phone afterall!

As the smartphone wars continue, it looks like the iPhone (my preference for it’s integration into all my other Apple products) is getting some stiffer competition. Will Apple’s culture hurt the iPhone?

Amplify’d from www.nytimes.com

If you want a smartphone powered by Google’s Android software, you could get Motorola’s Droid 2 or its cousin, the Droid X. Then there is the Droid Incredible from HTC, the Fascinate from Samsung and the Ally from LG.

Paul Sakuma/Associated Press -Steven P. Jobs, in 1984, presented the new Macintosh personal computer.

 

That’s just on Verizon Wireless. An additional 20 or so phones running Android are available in the United States, and there are about 90 worldwide.

But if your preference is an Apple-powered phone, you can buy — an iPhone.

That very short list explains in part why, for all its success in the phone business, Apple suddenly has a real fight on its hands.

Americans now are buying more Android phones than iPhones. If that trend continues, analysts say that in little more than a year, Android will have erased the iPhone’s once enormous lead in the high end of the smartphone market.

But this is not the first time Apple has found itself in this kind of fight, where its flagship product is under siege from a loose alliance of rivals selling dozens of competing gadgets.

In the early 1980s, the Macintosh faced an onslaught of competition from an army of PC makers whose products ran Microsoft software. The fight did not end well for Apple. In a few years, Microsoft all but sidelined Apple, and the company almost went out of business.

Can Apple, which insists on tight control of its devices, win in an intensely competitive market against rivals that are openly licensing their software to scores of companies? It faces that challenge not only in phones, but also in the market for tablet computers, where the iPad is about to take on a similar set of rivals.

“This is a really big strategic question,” said Toni Sacconaghi, an analyst with Sanford C. Bernstein and Company. “No one knows whether openness will ultimately prevail as it did on the PC.”

Apple declined to comment on the issue.

By some measures, the competition Apple faces this time is even more formidable than it was in PCs. In addition to the Android family, Apple already competes with Research In Motion, maker of the BlackBerry.

And the iPhone will soon have one more powerful, and familiar, foe: Microsoft. That company’s well-reviewed Windows Phone 7 software will appear in as many as nine new smartphones beginning next month. Others like Nokia cannot be counted out.

Read more at www.nytimes.com

Verizon iPhone 4 March 2011 debut stales Verizon iPhone 5 launch date

I am gonna need the arrival of the Verizon iPhone 4 (which I’ll believe when it actually arrives in the store) to NOT stop the roll out of the iPhone 5 on Verizon, AT&T or anywhere else.

It could be Apple is waiting for the roll out of the 4G network on both carriers. Then of course there are rumors that Verizon will be the only carrier to have the iPhone 5. Let’s not even talk about how unhappy that little rumor will make me should it come to fruition. I only came back to AT&T to get the iPhone 3Gs. Either way, can we please move past the iPhone 4? The bigger, better iPhone 5 is right around the corner and I WANT IT!

Amplify’d from www.beatweek.com

The Verizon iPhone 4’s early 2011 arrival, which many had interpreted to mean January 2011, is now being pegged as March 2011 by at least one analyst. This new date, if accurate, raises questions about the future of the iPhone roadmap. Apple has historically released a new iPhone model each June or July, going back to 2007. If that pattern holds, the iPhone 5 will arrive in June or July of 2011. In such a case, a Verizon iPhone 4 in January makes sense, as it would allow Apple to begin selling the iPhone to Verizon customers a good six months earlier than if it simply waited for the arrival for the iPhone 5 to do so. But a March arrival date for the Verizon iPhone would raise the question of whether the iPhone 5 is indeed on track for early summer release.

Sure, Apple wants to stop the rise of Verizon’s Droid platform in its tracks sooner rather than later, particularly seeing as how many of those Droid buyers freely admit that they actually want an iPhone but aren’t willing to leave Verizon. But the idea that Apple would take the trouble to put a Verizon-compatible iPhone 4 on the market for a mere three months, particularly with so much of the public aware that Apple releases new-generation iPhones in the summer, would border on overreaction.

Unless, of course, the iPhone 5 isn’t coming this summer after all.

What could be the holdup? The most obvious candidate would be the impending arrival of the 4G network on both Verizon and AT&T. If Apple plans to build the iPhone 5 to be 4G-compatible, then it could hold the iPhone 5’s release until the 4G network has been built out sufficiently on both carriers. Or Apple could opt to release the iPhone 5 at separate times on separate carriers, depending on each carrier’s 4G progress. In other words, the arrival of a Verizon iPhone 4 in March, followed by the arrival of the AT&T iPhone 5 in say, June, and then the arrival of a Verizon iPhone 5 sometime after that, is entirely possible. Apple has never rolled out an iPhone in that manner before. But then again, Apple has never previously had the iPhone available on multiple U.S. carriers.

Read more at www.beatweek.com

Facebook Enters the Google-Verizon Net Neutrality Debate

I appreciate Facbook getting into the Google-Verizon net neutrality argument but why aren’t SMALL businesses up in arms? Facebook is protecting it’s interest and probably hot they aren’t at the “we’re mega companies taking over the broadband world” table. Where are small businesses in this debate? Oh well, the saga continues.

Amplify’d from mashable.com

Facebook has entered the net neutrality debate with a statement critical of the key provisions of Google and Verizon’s net neutrality proposal.

Ever since we found out Google and Verizon were in talks over net neutrality’s future, the web has been awash with an endless stream of opinions, most of them expressing outrage. The Federal Communications Commission (FCC) is not happy, and neither is the Electronic Frontier Foundation (EFF).

Facebook, it seems, isn’t a fan of the Google-Verizon proposal as it’s currently written. Here is the company’s statement (emphasis ours):

“Facebook continues to support principles of net neutrality for both landline and wireless networks. Preserving an open Internet that is accessible to innovators — regardless of their size or wealth — will promote a vibrant and competitive marketplace where consumers have ultimate control over the content and services delivered through their Internet connections.”

There are several sections of the proposal that trouble a lot of people, but the biggest sticking point is the exclusion of wireless networks from net neutrality regulations. Verizon and Google exclude it from their proposal for wired connections because “imposition of too many rules up front would not allow us to optimize this network in a fashion that would supercharge the growth we’ve seen in the past.” Critics say that Google and Verizon are trying to protect their own interests, especially their highly profitable Android partnership.

Read more at mashable.com

Google is back in the world domination game! The Google, Verizon deal could change net neutrality

In a move that would give the mega giant tech company a major lead over… well… everybody… there is a deal on the table between Google and Verizon Communications regarding so-called network neutrality rules. The rules dictate how broadband providers treat Internet traffic flowing over their lines. If this deal goes through, it would give Google a major push to the head of the class, speeding of delivery of their content to customers at a faster rate.

It is not the specific Google/Verizon deal that could cause the problem. Instead, it’s the fact that if the deal goes through, it would grant privilege to other big, powerful, giant companies to pay to have their content show up at a faster rate on the Internet. The offerings of small businesses would get lost and now the integrity of free enterprise on the Internet will be challenged.

According the the Associated Press, a deal could be announced within days.

Google, Verizon deal could change net neutrality

Laptop displays Google logo Laptop displays Google logo

(Frederic J. Brown/AFP/Getty Images)

A deal between Google and Verizon could set the stage for big companies to pay for the privilege of speeding up delivery of their own content to consumers.

An interview with Marketplace’s Mitchell Hartman on the impact of “net neutrality.”

Listen to this Story

TEXT OF INTERVIEW

Bill Radke: There’s a deal reportedly in the works between Google and Verizon that could upset the apple cart of what’s known as “net neutrality.” This is the idea that all Internet content- from YouTube videos to eBay listings to this show’s podcast get treated the same by Internet Service Providers. These are the telephone and cable companies that control the pipelines of the Web. The agreement between Google and Verizon could set the stage for big companies to pay for the privilege of speeding up delivery of their own content to consumers. Marketplace’s Mitchell Hartman is here to help us bushwhack through the weeds of “net neutrality.” Good morning, Mitchell.

Mitchell Hartman: Good morning, Bill.

Radke: What might a deal between Verizon and Google mean?

Hartman: Well right now, the cable and telephone companies don’t speed up or slow down the flow of information to our computers, depending on what website it’s coming from. But think about it: someone who downloads tons of TV shows or YouTube videos, that uses up a lot of bandwidth. Companies like Verizon would like to charge more for that — let Google, for instance, which owns YouTube, pay to give priority to YouTube videos priority getting to our computers. And we might end up paying part of that bill with tiered pricing for Internet just like we now have for premium cable. Reports are sketchy on this deal — reports in Bloomberg and the New York Times — neither company is commenting, and we don’t know how it might affect smart phones.

Radke: And what is the problem with letting the Internet evolve in that direction?

Hartman: Well, you know if some big company, Google or Amazon or eBay, gets to buy access to the fast lane, somebody else’s content is going to be left in the slow lane. Somebody who isn’t paying millions of dollars to Verizon or AT&T or Comcast — a library, struggling online magazines, whatever. So to consumer and open-Internet advocates, these kinds of deals are basically the death knell of “net neutrality.” Now the FCC is trying to work out regulations to keep the playing field of the Internet somewhat level going forward, but it probably doesn’t have the legal authority to do that right now.

Radke: OK, Marketplace’s Mitchell Hartman. Mitchell, thanks.

Hartman: You’re welcome.

Links

  • FCC to vote on regulating broadband
    The Federal Communication Commission is likely to vote today to go ahead and seek public comment on three different plans to regulate broadband. Steve Chiotakis learns more about net neutrality from analyst Rob Enderle.
  • FCC votes for net neutrality rules
    Today the Federal Communications Commission voted to stop Internet service providers like Verizon and AT&T from tampering with Web traffic and picking favorites. Steve Henn reports.

Read more at marketplace.publicradio.org

 

 

Google is back in the world domination game! The Google, Verizon deal could change net neutrality

In a move that would give the mega giant tech company a major lead over… well… everybody… there is a deal on the table between Google and Verizon Communications regarding so-called network neutrality rules. The rules dictate how broadband providers treat Internet traffic flowing over their lines. If this deal goes through, it would give Google a major push to the head of the class, speeding of delivery of their content to customers at a faster rate.

It is not the specific Google/Verizon deal that could cause the problem. Instead, it’s the fact that if the deal goes through, it would grant privilege to other big, powerful, giant companies to pay to have their content show up at a faster rate on the Internet. The offerings of small businesses would get lost and now the integrity of free enterprise on the Internet will be challenged.

According the the Associated Press, a deal could be announced within days.

Google, Verizon deal could change net neutrality

Laptop displays Google logo

A deal between Google and Verizon could set the stage for big companies to pay for the privilege of speeding up delivery of their own content to consumers.

Laptop displays Google logo
(Frederic J. Brown/AFP/Getty Images)

More on
Internet

Links

  • FCC to vote on regulating broadband
    The Federal Communication Commission is likely to vote today to go ahead and seek public comment on three different plans to regulate broadband. Steve Chiotakis learns more about net neutrality from analyst Rob Enderle.
  • FCC votes for net neutrality rules
    Today the Federal Communications Commission voted to stop Internet service providers like Verizon and AT&T from tampering with Web traffic and picking favorites. Steve Henn reports.

TEXT OF INTERVIEW

Bill Radke: There’s a deal reportedly in the works between Google and Verizon that could upset the apple cart of what’s known as “net neutrality.” This is the idea that all Internet content- from YouTube videos to eBay listings to this show’s podcast get treated the same by Internet Service Providers. These are the telephone and cable companies that control the pipelines of the Web. The agreement between Google and Verizon could set the stage for big companies to pay for the privilege of speeding up delivery of their own content to consumers. Marketplace’s Mitchell Hartman is here to help us bushwhack through the weeds of “net neutrality.” Good morning, Mitchell.

Mitchell Hartman: Good morning, Bill.

Radke: What might a deal between Verizon and Google mean?

Hartman: Well right now, the cable and telephone companies don’t speed up or slow down the flow of information to our computers, depending on what website it’s coming from. But think about it: someone who downloads tons of TV shows or YouTube videos, that uses up a lot of bandwidth. Companies like Verizon would like to charge more for that — let Google, for instance, which owns YouTube, pay to give priority to YouTube videos priority getting to our computers. And we might end up paying part of that bill with tiered pricing for Internet just like we now have for premium cable. Reports are sketchy on this deal — reports in Bloomberg and the New York Times — neither company is commenting, and we don’t know how it might affect smart phones.

Radke: And what is the problem with letting the Internet evolve in that direction?

Hartman: Well, you know if some big company, Google or Amazon or eBay, gets to buy access to the fast lane, somebody else’s content is going to be left in the slow lane. Somebody who isn’t paying millions of dollars to Verizon or AT&T or Comcast — a library, struggling online magazines, whatever. So to consumer and open-Internet advocates, these kinds of deals are basically the death knell of “net neutrality.” Now the FCC is trying to work out regulations to keep the playing field of the Internet somewhat level going forward, but it probably doesn’t have the legal authority to do that right now.

Radke: OK, Marketplace’s Mitchell Hartman. Mitchell, thanks.

Hartman: You’re welcome.

Read more at marketplace.publicradio.org