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January 29, 2007

iphone

Verizon Wireless rebellion crushed by AT&T-Apple alliance

Posted Jan. 29, ’07, 8:10 AM PT by Dan Moren
Category | iPhone

AT&T, fully operationalI thought I might start out this post with a string of invective and name-calling leveled against Verizon, but the way I figure it, they’ll be enjoying the fruits of self-flagellation soon enough.

Turns out that what the former largest cell phone provider in the US can’t hear now is the sweet “cha-ching” of cash registers. About two years ago, Verizon apparently turned down its chance to be the exclusive partner for the iPhone, saying that they “just couldn’t reach a deal that was mutually beneficial.” I’m sorry: with the bundles of cash that are likely to result from this, you couldn’t find a way to divvy it up?

Of course Apple, with its typical flair, insisted on a large degree of control over how and where the iPhone was sold (in Apple Stores, but not Wal-Mart and Best Buy, for example), as well as determining whether broken iPhones should be replaced or repaired.

“They would have been stepping in between us and our customers to the point where we would have almost had to take a back seat … on hardware and service support,” [Verizon Wireless vice president Jim] Gerace says.
The story also suggests that the Cingular (aka AT&T) exclusivity deal is for five years, which kind of brings a sick feeling to my stomach.

In case you’ve missed the impact of this whole fiasco: I’m a Verizon customer. And my contract is in effect for another year. C’mon guys: I would have totally traded up to an iPhone if I could have stuck with Verizon. Meanwhile, Cingular is—no surprise—pleased as punch: “We think this is a win for Apple, and it is a win for Cingular.”

[via Macworld]


8 Comments

Jack said:

Verizon are control freaks. Basically they wanted to cripple Apple's phone I'll bet, and there's no way iTunes would be on there. I think Apple is gonna have there way with Cingular, and since it will be good for consumers, Verizon is gonna have to stop their B.S. as well eventually. There is already talk of Cingular giving free data plans with the iPhone with the effect of switching Verizon customers. I asked the Cingular guy we deal with at work, and he said however it works out, it looks like you'll get some kind of subsidy on the plan as opposed to the phone. A Cingular internet all you can eat plan is $20. The might give the first 18 months of a 2 year contract free which is like getting $360 subsidy. I'm just wondering if Verizon Customers are gonna get better deals than us Cingular Customers.

January 29, 2007 8:30 AM
Nick said:

I cannot understand Verizon and I cannot understand how they were allowed to unite again into the monopoly it is after being told it would not!

This company just doesn't care about its customers, hides truths and now we find out, loses a chance to have had the iPhone? I would have actually favored a Verizon networked iPhone instead of the other AT&T soon-to-become-again monopoly.

January 29, 2007 8:33 AM
ehren Author Profile Page said:

I'm not gonna say I'm not disappointed that I could've had a Verizon iPhone, but I can honestly say that the only way AT&T/Cingular could bring me over is to offer me a free iPhone with free lifetime service. in the meantime, I'll keep my RAZR, 99% flawless coverage and excellent customer service

January 29, 2007 8:44 AM
Walt Basil said:

I’m gladly switching over to whatever network is offering the iPhone. I currently use a RAZR, and I almost had to cancel my contract with T-Mobile and pay the cancellation fees, just to buy the RAZR and begin a new contract with – T-Mobile. They didn’t want to sell me a RAZR when they first became available as I was told they were only available for new customers. I was ready to pay the money because I wanted a RAZR that bad. Fortunately for me, I was able to get in touch with a nice rep who sold me one over the phone and had it shipped (at full price of course). Had she not done that, I would have paid the fees and opened another contract (I was gearing myself up to pay over $1000 to get the RAZR – phone, cancellation fees, new contract, etc). Just because I wanted *that* phone. Money was no object. And the RAZR was no cheap little $99 phone back then either. If I remember correctly, that phone was $199 with a contract. The same will apply for the iPhone. I’ll pay whatever it costs, and switch to whatever network will give it to me. I don’t even use that many minutes. Maybe 20 (low end) to 60 (max) minutes per month. Most of my iPhone use will be for iPod, calendar, email, texting, and browsing (wifi). I won’t change my calling habits any, I have no use for conference calls, and it may still be easier for me to use my recently called than to scroll through the address book most of the time. So I have no pressing need for the iPhone other than just wanting to have it.

January 29, 2007 9:17 AM
Jeremy McCullough said:

Well...from what I've heard about Verizon...the iPhone just doesn't fit in. They love to cripple phones, as earlier stated.

I don't see what would be wrong with Apple handling support for its own phone, or at least helping. If anything, that'd help. Cellular providers have awful support. Apple's is probably the best I've seen so far. How could it have been a bad thing?

January 29, 2007 9:41 AM
Will Parker said:

Good Ghod, what company in its right corporate mind would _insist_ on supporting some other company's hardware? Particularly when the OS for said hardware is nothing like the company has ever supported before.

January 29, 2007 10:46 AM
matthew said:

I'd take fewer features (read visual voicemail) in exchange for a carrier-free iPhone.

January 29, 2007 11:02 AM
Scott said:

Damn. 5 year exclusive? Double damn. No Cingular in my county. Getting same sick feeling in stomach.

Oh well, looks like U.S. Cellular gets a new contract.

January 29, 2007 11:35 AM

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