Verizon may pay Apple to keep iPhone away from T-Mobile, Sprint
With the launch of the Verizon iPhone widely expected in early 2011, the wireless carrier may pay Apple to keep its smartphone off of rival networks Sprint and T-Mobile.
Analyst Shaw Wu with Kaufman Bros. said in a note to investors on Monday that he has heard from sources that Verizon is now more willing to accept Apple's terms in order to have access to the iPhone. In fact, Verizon may pay Apple even more to ensure that the iPhone remains exclusive to it and AT&T.
"We are hearing that (Verizon) does not want iPhone, the hottest selling smartphone, available on T-Mobile USA and/or Sprint and may be willing to pay for exclusivity to itself and AT&T," Wu wrote. "For these reasons, (Verizon) could be more willing to give in to Apple's terms."
He said that Apple's record-setting iPhone sales, which reached 14.1 million last quarter, have placed Apple in the "driver's seat" when it comes to negotiations. Wu also asserted that Google's Android operating system has begun to "lose some of its luster" at Verizon.
Sources also indicated to Wu that Verizon does not have high hopes for the upcoming BlackBerry 6 OS, which will introduce multi-touch gestures like on the iPhone. Verizon reportedly believes Research in Motion's upcoming mobile operating system will not have a "material impact."
Verizon is the largest wireless carrier in the U.S., with 93 million subscribers, while AT&T is just behind it. Sprint is the third-largest carrier, with 49 million, while T-Mobile is the smallest of the "big four" with 34 million subscribers.
Rumors of a Verizon-compatible iPhone have persisted since Apple's handset first launched in 2007. Since its introduction, it has been exclusive to AT&T in the U.S., though Apple has expanded to more carriers in many other countries around the world.
Numerous mainstream media outlets have reported that Apple will launch a Verizon-compatible CDMA iPhone in early 2011. Externally, the device is expected to look the same as the iPhone 4, but inside it will feature a CDMA chip from Qualcomm, as the current iPhone uses UMTS/HSPA+ technology that is not compatible with Verizon.
Those rumors gained even more credibility when Apple and Verizon partnered to sell the iPad through the carrier bundled with a MiFi 2200 Intelligent Mobile Hotspot, starting in October. The 3G iPad, however, is not compatible with Verizon's network, so the carrier sells the Wi-Fi model bundled with a portable modem.
Analyst Shaw Wu with Kaufman Bros. said in a note to investors on Monday that he has heard from sources that Verizon is now more willing to accept Apple's terms in order to have access to the iPhone. In fact, Verizon may pay Apple even more to ensure that the iPhone remains exclusive to it and AT&T.
"We are hearing that (Verizon) does not want iPhone, the hottest selling smartphone, available on T-Mobile USA and/or Sprint and may be willing to pay for exclusivity to itself and AT&T," Wu wrote. "For these reasons, (Verizon) could be more willing to give in to Apple's terms."
He said that Apple's record-setting iPhone sales, which reached 14.1 million last quarter, have placed Apple in the "driver's seat" when it comes to negotiations. Wu also asserted that Google's Android operating system has begun to "lose some of its luster" at Verizon.
Sources also indicated to Wu that Verizon does not have high hopes for the upcoming BlackBerry 6 OS, which will introduce multi-touch gestures like on the iPhone. Verizon reportedly believes Research in Motion's upcoming mobile operating system will not have a "material impact."
Verizon is the largest wireless carrier in the U.S., with 93 million subscribers, while AT&T is just behind it. Sprint is the third-largest carrier, with 49 million, while T-Mobile is the smallest of the "big four" with 34 million subscribers.
Rumors of a Verizon-compatible iPhone have persisted since Apple's handset first launched in 2007. Since its introduction, it has been exclusive to AT&T in the U.S., though Apple has expanded to more carriers in many other countries around the world.
Numerous mainstream media outlets have reported that Apple will launch a Verizon-compatible CDMA iPhone in early 2011. Externally, the device is expected to look the same as the iPhone 4, but inside it will feature a CDMA chip from Qualcomm, as the current iPhone uses UMTS/HSPA+ technology that is not compatible with Verizon.
Those rumors gained even more credibility when Apple and Verizon partnered to sell the iPad through the carrier bundled with a MiFi 2200 Intelligent Mobile Hotspot, starting in October. The 3G iPad, however, is not compatible with Verizon's network, so the carrier sells the Wi-Fi model bundled with a portable modem.
Comments
You may not know this, but I can already use my iPhone with T-Mobile. Also, if Apple is stupid enough to release an iPhone with a CDMA chip, I'll be able to use it with Sprint, too.
Sincerely,
Everyone with an inkling of how to jailbreak/unlock.
Steve always likes to talk about Karma..., well Steve, that would be instant bad karma gonna get you (in honor of the Beatles on iTunes, I won't put up the rest of the lyrics to Lennon's Instant Karma song, but Steve, you get the point! I hope!!
Makes no sense for Apple. Android is like a Mac truck bearing down on the iPhone. Apple's gotta go to multiple carriers.
I don't think it's essential to add Sprint and t-mobile. Adding VZ to ATT will give Apple a considerable boost. And if a deal like the one rumored here allows them to increase sales while maintaining margins, then that's a winner.
I don't think it's essential to add Sprint and t-mobile. Adding VZ to ATT will give Apple a considerable boost. And if a deal like the one rumored here allows them to increase sales while maintaining margins, then that's a winner.
Of course it isn't essential. Apple will benefit regardless of if it goes with just AT&T and V, or if it also brings in the other carriers. The difference will be for the consumer. The more carriers you have competing for iPhone sales, especially the smaller, more aggressive carriers, the better it will be for the consumer.
Of course, this isn't always the case. In Canada, we have three carrier now carrying the iPhone (and two of their subsidiaries) and plans haven't improved much at all because of it. That is more a problem caused by those same three carriers essentially colluding for years. We have a few new players this year that are taking a bite by actually competing, but for there are many people that won't move to them unless the are compatible with the iPhone.
Makes no sense for Apple. Android is like a Mac truck bearing down on the iPhone. Apple's gotta go to multiple carriers.
I tend to agree with the last sentence.
Dear Verizon,
You may not know this, but I can already use my iPhone with T-Mobile. Also, if Apple is stupid enough to release an iPhone with a CDMA chip, I'll be able to use it with Sprint, too.
Sincerely,
Everyone with an inkling of how to jailbreak/unlock.
Umm... I don't think it's that easy to get a Verizon phone onto Sprint's network. I may be wrong, but I think you'll have to call Verizon for a code and I don't know how readily they'll give it to you. Considering that they subsidized the phone and wouldn't be too happy giving the bulk of their earnings (i.e. the plan) to a competing network.
Umm... I don't think it's that easy to get a Verizon phone onto Sprint's network. I may be wrong, but I think you'll have to call Verizon for a code and I don't know how readily they'll give it to you. Considering that they subsidized the phone and wouldn't be too happy giving the bulk of their earnings (i.e. the plan) to a competing network.
You missed the point.
I'm saying, "screw going through legitimate channels". If my phone is physically capable of running on T-Mobile, I get to use it on T-Mobile. If my phone is physically capable of running on Sprint, I get to run it on Sprint. I'll get this "code" myself by repackaging iOS. Pretty simple.
Dear Verizon,
You may not know this, but I can already use my iPhone with T-Mobile. Also, if Apple is stupid enough to release an iPhone with a CDMA chip, I'll be able to use it with Sprint, too.
Sincerely,
Everyone with an inkling of how to jailbreak/unlock.
And you're probably thinking that Apple must still support you even after jailbreaking your phone? You probably still think you deserve to install Apple software updates as well. Jailbreaking your phone breaks the EULA. You deserve no more support from Apple. You must write your own software updates. Fix your own bugs. You no longer qualify for Apple support.
And you're probably thinking that Apple must still support you even after jailbreaking your phone? You probably still think you deserve to install Apple software updates as well. Jailbreaking your phone breaks the EULA. You deserve no more support from Apple. You must write your own software updates. Fix your own bugs. You no longer qualify for Apple support.
Some people love the iPhone, but hate that Apple tells them what they can and can't install on it. There is absolutely nothing wrong with jailbreaking, and your comment just sums up what it is to be a mindless follower.
I would bet money that Steve Jobs has an unlocked iphone.
You missed the point.
I'm saying, "screw going through legitimate channels". If my phone is physically capable of running on T-Mobile, I get to use it on T-Mobile. If my phone is physically capable of running on Sprint, I get to run it on Sprint. I'll get this "code" myself by repackaging iOS. Pretty simple.
I don't think you understand things as well as you are trying to make us believe. iPhone as it is now works on T-Mobile EDGE because they and AT&T use the same frequencies. Sprint and Verizon do not. Yes, they are both CDMA, but without a radio capable of talking to specific frequencies, it is a moot point. Also, you can't just simply unlock a CDMA device, since there is no SIM card you can just swap into it. You literally HAVE to have a carrier activate the phone, so good luck with that process too, even if you did have compatible frequencies.
You missed the point.
I'm saying, "screw going through legitimate channels". If my phone is physically capable of running on T-Mobile, I get to use it on T-Mobile. If my phone is physically capable of running on Sprint, I get to run it on Sprint. I'll get this "code" myself by repackaging iOS. Pretty simple.
What do you sacrifice when you use an iPhone on an unsupported network? Wouldn't you lose visual voicemail and other features?
Umm... I don't think it's that easy to get a Verizon phone onto Sprint's network. I may be wrong, but I think you'll have to call Verizon for a code and I don't know how readily they'll give it to you. Considering that they subsidized the phone and wouldn't be too happy giving the bulk of their earnings (i.e. the plan) to a competing network.
It isn't. It used to be, but now you have to spoof some sort of internal ID number that exists on their systems. I'm pretty sure that's how Sprint does it at least. Each phone sold has a unique ID hard coded into the device, and that ID must match up with an ID on their system.
I remember with the touch pro, people could take a Sprint phone and get it working on Verizon's system. I never saw anyone do it the other way (not that anyone would want to since Verizon gimped the phone) but I distinctly remember when people had to stop doing it because of some change implemented by Verizon.
Don't think anything has changed with iphones on tmobile, but I could be wrong.
Some people love the iPhone, but hate that Apple tells them what they can and can't install on it. There is absolutely nothing wrong with jailbreaking, and your comment just sums up what it is to be a mindless follower.
I would bet money that Steve Jobs has an unlocked iphone.
I love my car too, but if I put on aftermarket parts that weren't from the manufacturer, how can I expect support from my car maker if anything goes wrong? It's on me at that point.
Go ahead and jailbreak your phone, more power to you, just don't expect Apple to bail you out if anything goes wrong because of something they didn't make.
And you're probably thinking that Apple must still support you even after jailbreaking your phone? You probably still think you deserve to install Apple software updates as well. Jailbreaking your phone breaks the EULA. You deserve no more support from Apple. You must write your own software updates. Fix your own bugs. You no longer qualify for Apple support.
HA HA HA HA HA HA HA HA
You certainly live up to your name. Yes, they'll support me when I take it in with stock firmware. I certainly must not "write my own software updates". I'm fixing my own bugs BY jailbreaking. The orientation to mute on the iPad was a bug. I fixed it.
I qualify for support as long as I'm under AppleCare, and afterwards as long as I can pay. Pretty simple.
I don't think you understand things as well as you are trying to make us believe. iPhone as it is now works on T-Mobile EDGE because they and AT&T use the same frequencies. Sprint and Verizon do not. Yes, they are both CDMA, but without a radio capable of talking to specific frequencies, it is a moot point. Also, you can't just simply unlock a CDMA device, since there is no SIM card you can just swap into it. You literally HAVE to have a carrier activate the phone, so good luck with that process too, even if you did have compatible frequencies.
Admittedly, even though I have a Verizon phone, I know little of CMDA frequencies. Does anyone even make CDMA chips that don't work on every frequency? That's why I said it would be idiotic of Apple to even include a CDMA chip; just make it GSM and LTE. WiMAX is pointless, anyway; I'm just illustrating the point that if one of my possessions works on someone else's network, I'll use it there.
Also, Verizon uses SIM cards with their LTE phones. It's a new era.
What do you sacrifice when you use an iPhone on an unsupported network? Wouldn't you lose visual voicemail and other features?
Yes. You also gain the ability to actually use the network of your choice. I'd rather not pay $70 a month for phone service when I can keep paying $20 and use Wi-Fi.
Dear Verizon,
You may not know this, but I can already use my iPhone with T-Mobile. Also, if Apple is stupid enough to release an iPhone with a CDMA chip, I'll be able to use it with Sprint, too.
Sincerely,
Everyone with an inkling of how to jailbreak/unlock.
Dear Tallest Skil,
The VAST majority of iPhone owners do not jailbreak their phones.
Sincerely,
Reality