AT&T outbid Verizon with cheaper Apple iPad data plans - rumor

Posted:
in Current Mac Hardware edited January 2014
While talk of a Verizon-capable iPad incorrectly persisted for months, it was AT&T's willingness to offer inexpensive no-contract data plans that sealed the deal with Apple, a new report claims.



Clayton Morris of FoxNews.com offered Wednesday what he called a "behind the scenes" look at talks between Apple and Verizon over the iPad and a potential CDMA-capable iPhone. Morris alleged that both companies are "still talking," despite the fact that Apple went out of its way to defend AT&T last week, and also introduced the wireless carrier as the sole 3G partner for the iPad in the U.S.



Morris has reported a number of Apple-related rumors in the last few months, but his level of accuracy thus far has been far from perfect.



Last month, Morris incorrectly reported that iPhone OS 4.0 and iLife 2010 were "confirmed" for Apple's iPad unveiling event. Apple instead introduced a multi-touch version of iWork for the iPad, and the device runs the unreleased iPhone OS 3.2.



Morris also previously alleged, in a separate report, that both Verizon and AT&T were engaged in last-minute talks to offer 3G data plans for the iPad. He claimed sources said Apple would release two versions of its touchscreen tablet: one CDMA and one GSM, to offer compatibility with both wireless providers.



Morris is an anchor on the program "Fox & Friends" on Fox News Channel. His personal Web site refers to him as a "self-described casual geek" and a "Mac junkie."



His latest column acknowledges that he reported Verizon "appeared to be on board" before Apple's iPad introduction. He added that sources at Verizon told him the nation's largest wireless provider is "more interested in the lucrative iPhone contracts."



Morris also noted that the two companies remain in talks to bring both the iPhone and iPad to the Verizon network this year, when the exclusive contract between Apple and AT&T expires. Morris said at this point he remains skeptical that a deal will happen.



"Of course 'still talking' doesn't mean anything," he wrote. "It would be ridiculous to think these companies aren't still talking: that's what big companies do. To be fair, these talks are very much in keeping with reports from Wall Street analysts who expect some Apple/Verizon partnership announcement this year. But I'll believe it when I see it."



Last week, when Apple introduced the iPad, it also announced no-contract data plans from AT&T, running $15 per month for 250MB of data, or $30 per month for unlimited access. The plans will also offer free access to AT&T's nationwide hotspots. Typically, cell phone companies charge $60 per month for their mobile data-only plans.



As a contract-free purchase, users can buy a 3G-enabled version of the iPad starting at $629. The AT&T network access can be purchased -- or canceled -- at any time directly from the iPad. Though the device ships unlocked, due to hardware limitations it will only have access to AT&T's 3G data network in the U.S.



Prior to last week's iPad unveiling, Apple Chief Operating Officer Tim Cook defended AT&T in his company's quarterly earnings conference call. He called AT&T a "great partner," and said most customers have had a positive experience with the carrier.



Cook also downplayed speculation that the iPhone would inevitably be offered on multiple carriers in all countries. He said so far Apple has selected nations where they believe a multi-carrier system would happen anyhow.



"I don't want to imply that would happen in every market or that we are headed that way in every market," Cook said.
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Comments

  • Reply 1 of 85
    foo2foo2 Posts: 1,077member
    Verizon is the "nation's largest wireless provider" just like there's a fungus in Oregon that's perhaps the world's largest living organism.
  • Reply 2 of 85
    What good is cheap data if the network is too clogged with traffic to use it?
  • Reply 3 of 85
    Good for us that Apple made this deal? most people look at the iPad wireless data plan and don't get how cheap it is in comparison to other wireless carriers...
  • Reply 3 of 85
    blastdoorblastdoor Posts: 1,858member
    I think Verizon must have ticked off Jobs. We might not see the iPhone on Verizon for years.
  • Reply 5 of 85
    mactelmactel Posts: 1,275member
    You know it would be much easier for Apple to bring on T-Mobile than Verizon. T-Mobile's network is GSM. I liked T-Mobile when I was with them. I only left since my phone was issued by my employer and they use Verizon.
  • Reply 6 of 85
    Rumors are rumors.



    Talks are talks and can change or not realize a thing.



    Until it's realized, it's just speculation.



    But it makes good press and hit traffic.





    Will this thread go untouched by the "Fox haters" remains to be seen.
  • Reply 7 of 85
    Just checked my usage. On average over the last 2 years I used 133 MB per month on my iPhone. Wish I could reduce my iPhone plan by 15 per month. I use my phone quite a bit. I'm wasn't thinking about getting a 3G iPad but now...



    I hate Fox but why hijack a thread.
  • Reply 8 of 85
    It's this simple... Apple will never support CDMA.
  • Reply 9 of 85
    Quote:
    Originally Posted by Bregalad View Post


    What good is cheap data if the network is too clogged with traffic to use it?



    I am pretty sure that if the iPhone was on Verizon's network they would have similar issues... Currently most countries don't have wireless networks are robust enough to handle the added data traffic from iPhones (includes US)... AT&T actually provides a superior service to Verizon's but to find that you need to look at the data and compare apples to apples... Making the comparison is difficult unless both companies are upfront or a 3rd party does a real analysis... In the past AT&T has won the overall most reliable service award when non-affiliated 3rd parties analyze the major wireless networks...
  • Reply 10 of 85
    wigginwiggin Posts: 2,258member
    Quote:
    Originally Posted by dxdragon View Post


    Good for us that Apple made this deal? most people look at the iPad wireless data plan and don't get how cheap it is in comparison to other wireless carriers...



    You can't really make that comparison and other carriers don't have an iPad data plan option. You are comparing ATT's iPad data plan with "other carriers" mobile broadband plans. As an example, Verizon's is $60/month. But guess what, ATT's mobile broadband plans are also $60/month.



    These plans are intended to be used with laptop's and netbooks, which could be used for far more data-intenstive online activities than an iPhone or iPad might typically be. But when you compare similar devices, the data plans between ATT and Verizon are the same price.



    But I do think that ATT offering $30/month is a great deal because it's for a data-only access. The iPhone data plan is the same price, but they have the additional revenue of coupling it with a required voice plan.



    It remains to be seen whether ATT is chasing margetshare at the expense of quality. Will they have enough revenue to continue upgrading it's network to handle the additoinal load these devices will add? Or will the quality suffer?
  • Reply 11 of 85
    Quote:
    Originally Posted by der passant View Post


    Just checked my usage. On average over the last 2 years I used 133 MB per month on my iPhone. Wish I could reduce my iPhone plan by 15 per month. I use my phone quite a bit. I'm wasn't thinking about getting a 3G iPad but now...)



    Not owning an iPhone and looking at the iPad with the 250MB data plan for $15.00... what all do you get accomplished when using 133MB per month?! In other words, are you able to get much done? thanks...
  • Reply 12 of 85
    This is evidenced by all the bad press at&t has received???





    Quote:
    Originally Posted by dxdragon View Post


    I am pretty sure that if the iPhone was on Verizon's network they would have similar issues... Currently most countries don't have wireless networks are robust enough to handle the added data traffic from iPhones (includes US)... AT&T actually provides a superior service to Verizon's but to find that you need to look at the data and compare apples to apples... Making the comparison is difficult unless both companies are upfront or a 3rd party does a real analysis... In the past AT&T has won the overall most reliable service award when non-affiliated 3rd parties analyze the major wireless networks...



  • Reply 13 of 85
    Quote:
    Originally Posted by Blastdoor View Post


    I think Verizon must have ticked off Jobs. We might not see the iPhone on Verizon for years.



    Since the article mentions "ongoing talks" between Verizon and Apple, your assumption is likely incorrect.



    The reason why iPhone/iPad isn't on the Verizon network is probably just a business decision based on Verizon not willing to A.) give Apple full control over the iTunes Store/App Store and/or B.) not offer plan pricing that Apple finds competitive.



    When Verizon is willing to accept Apple's terms, then you will see CDMA capable Apple devices.



    As the article notes, AT&T apparently got the nod for the iPad since they offered competitively priced no-contract data service.
  • Reply 14 of 85
    nebrienebrie Posts: 483member
    Verizon charges $40 just to tether the Pre (and it apparently sucks http://jkontherun.com/2010/02/03/pal...s-not-so-good/ )
  • Reply 15 of 85
    Quote:
    Originally Posted by Bregalad View Post


    What good is cheap data if the network is too clogged with traffic to use it?



    What good is NO DATA if the network is charging too much for the data plan in order to use it, so that the network doesn't get the iPad deal?
  • Reply 16 of 85
    pmzpmz Posts: 3,433member
    AI,



    Please stop reporting the ramblings of Clayton Morris, thank you
  • Reply 17 of 85
    wigginwiggin Posts: 2,258member
    Quote:
    Originally Posted by dxdragon View Post


    I am pretty sure that if the iPhone was on Verizon's network they would have similar issues... Currently most countries don't have wireless networks are robust enough to handle the added data traffic from iPhones (includes US)... AT&T actually provides a superior service to Verizon's but to find that you need to look at the data and compare apples to apples... Making the comparison is difficult unless both companies are upfront or a 3rd party does a real analysis... In the past AT&T has won the overall most reliable service award when non-affiliated 3rd parties analyze the major wireless networks...



    Care to provide any references for that claim? Consumer Reports (which is as "non-affiliated" as you can get) surveys of actual customer experience has consistently place Verizon at the top and ATT at/near the bottom. And this goes back to well before the iPhone was released, so you can't blame the iPhone for their problems. And CR only reports on users in the 15-ish top metropolitan areas, not backwoods middle-of-nowhere locations. So this is effectively a comparison of each company's 3G networks.



    Yes, technical "geek-level" analysis shows that ATT 3G is faster then Verizon 3G. But when it comes to reliability and customer satisfaction, Verizon has historically been shown to be more highly rated than ATT.
  • Reply 18 of 85
    Quote:
    Originally Posted by Rot'nApple View Post


    Not owning an iPhone and looking at the iPad with the 250MB data plan for $15.00... what all do you get accomplished when using 133MB per month?! In other words, are you able to get much done? thanks...



    I think it shows that the majority of data is used while you are on a wireless network...3G ties you over while you get to your destination. Wifi is everywhere...home, work, airports, train stations (and some trains), buses.



    I would find it pretty hard to use 250 MB of 3G on the iPad with the amount of hotspots I am near, but thats just me. 3G also has a limit for apps and podcasts downloads...you have to be hooked up to wireless for anything over 10MB I believe.
  • Reply 19 of 85
    dreyfus2dreyfus2 Posts: 1,063member
    Quote:
    Originally Posted by Wiggin View Post


    These plans are intended to be used with laptop's and netbooks, which could be used for far more data-intenstive online activities than an iPhone or iPad might typically be. But when you compare similar devices, the data plans between ATT and Verizon are the same price.



    Far more data-intensive than buying/renting 720p movies from the iTunes store? I don't think so. I easily download 1-2 GB worth of video podcasts on my iPhone... I do not see how data usage on the iPad will be the least bit lower than on the average netbook or laptop. We will have to see what "unlimited" means though... I am pretty sure there will be some kind of a "fair use" cap, most likely around 5GB/mth, which would still be attractive.



    The real killer here is the no-contract thing though... If you only need it while on vacation or very occasionally, you can save a fortune compared to a regular 24 months plan.
  • Reply 19 of 85
    Quote:
    Originally Posted by miniMoe View Post


    It's this simple... Apple will never support CDMA.



    Apple will release a CDMA phone when Verizon accepts Apple's terms. Since it will be years and years before LTE coverage approaches that of CDMA, it is likely that a future Verizon-compatible iPhone would be backwards compatible with CDMA.
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