'Fortune' Adds Its Voice to Verizon iPhone Confirmations

[MacRumors]

Earlier this month, The Wall Street Journal and The New York Times made headlines as the first flagship news publications to confirm that a Verizon iPhone is set to launch early next year.

In a lengthy profile of Verizon CEO Ivan Seidenberg published today, Fortune adds its voice to the chorus of confirmations and takes a look at the relationship between Apple and Verizon.

The next step, the iPhone, remains shrouded in secrecy, and neither company will discuss it. But people familiar with its development say it is a fait accompli. Verizon, sources say, will sell its own version of the iPhone 4, which will work on Verizon's CDMA-based 3G network. Unfortunately for globe trotters, the first version of the phone likely won't be built to work outside the U.S. -- it probably won't carry a special chip that can turn it into a "world phone."

The profile of Seidenberg reviews how Verizon turned down the opportunity to be the exclusive iPhone carrier in the United States back in 2005, fearing the level of control insisted upon by Apple and the demands for revenue sharing from monthly customer fees that were a feature of Apple's initial arrangement with AT&T. Once Apple decided to go with AT&T for the original iPhone, conversations between Verizon and Apple ceased until early 2007, after the iPhone had been introduced but before it had reached the market.

Seidenberg broke the silence. In the spring of 2007, months before the iPhone launch, he secured an audience with Jobs at Apple headquarters in Cupertino, Calif., and asked, "Why are we in your doghouse here?" It turns out that for all of Verizon's concerns about ceding control and sharing fees, Apple was wary of building a device for Verizon's CDMA network because it didn't use technology that allowed a phone to seamlessly operate around the world, as AT&T's network does.

Meetings between Seidenberg and Jobs continued in the following months, and Apple reportedly began to come around in late 2007 just as AT&T began receiving criticism for its network performance under the load of the iPhone. While it has taken nearly three additional years for discussions to progress to the point where the companies have a business relationship with Verizon offering the iPad in its retail stores, the much-anticipated Verizon iPhone appears set to follow close behind.

Article Link: 'Fortune' Adds Its Voice to Verizon iPhone Confirmations

 

[bbplayer5]

Hope lots jump ship and free up my bandwidth!

 

[Boston007]

I will never go back to Verizon

After Verizon's recent settlement for it's YEARS of charging users "MYSTERY" fees which they accounted to a "clerical" error, I will never go back to them.

The settlement is a complete joke and if one looks deeper, it's fairly obvious Verizon hid even more.

PATHETIC

I don't care if they have the best coverage on the east coast. I will never go back to Verizon. They are scumbags.

 

[lazyrighteye]

And to think discussions began in '05...

I know I'm in the minority here, but F VZW.
http://www.mobilemarketer.com/cms/news/legal-privacy/7935.html

Good to see them finally held accountable. This is exactly why I left VZW for the original iPhone launch. Receiving bills that averaged $400 more than they should have been, on several occasions, that each took several months, headaches and countless hours on the phone with customer service to remedy, has made my AT&T/iPhone experience pretty refreshing.

Ha! Couldn't agree more, Boston007.
I once had a $1,200 monthly bill (should have been $90) and took 3 months to remedy. PITA.

 

[Consultant]

Keep guessing every few months and someone will get lucky eventually, when Verizon can handle both voice and data at the same time (they can't right now).

 

[Boston007]

And to think discussions began in '05...

I know I'm in the minority here, but F VZW.
http://www.mobilemarketer.com/cms/news/legal-privacy/7935.html

Good to see them finally held accountable. This is exactly why I left VZW for the original iPhone launch. Receiving bills that averaged $400 more than they should have been, on several occasions, that each took several months, headaches and countless hours on the phone with customer service to remedy, has made my AT&T/iPhone experience pretty refreshing.

I agree with you 100%. Look into the details further and one can EASILY see Verizon hid MUCH more that they made off these mystery fees!

SCUMBAGS

 

[dwd3885]

I agree with you 100%. Look into the details further and one can EASILY see Verizon hid MUCH more that they made off these mystery fees!

SCUMBAGS

Verizon is the WORST. I don't trust them at all. Sure all carriers are morons, but Verizon was awful while I was there. ATT was fine, but their call quality and service was crappy. T-Mobile coverage is awful but service is good. That's why I chose Sprint. Best mix between coverage and service.

 

[jayducharme]

I do like AT&T's customer service much more than Verizon's. And overall I'm happy with how my iPhone functions. But coverage is so spotty in my area that it would be refreshing having some iPhone competition to encourage AT&T to improve its signal quality.

There must be some strong incentive (beyond selling more iPhones) for Apple to make a special phone just for Verizon. The costs involved can't be negligible.

 

[szekany]

Most interesting line in the article:

According to Seidenberg, Jobs told him during a December 2009 meeting, "Decisions you made [at Verizon] are decisions we would make at Apple." Adds Seidenberg: "I think he began to look at us as having a slightly bigger IQ."

I'd never really thought about just how much Apple and Verizon have in common. The description of a languishing company brought back to life by a singularly loyal CEO to grow an enormous customer base willing to tolerate draconian lock-down on their devices on the strength of the way the product "just works": it describes Verizon equally as well as Apple.

 

[jsoto]

I am holding out for Gen 2. If Gen 2 of iPad has facetime camera. I'm in. If it has dual facetime cameras. Then I'm in for 2. One for me & the other for the wife!

 

[Boston007]

Verizon is the WORST. I don't trust them at all. Sure all carriers are morons, but Verizon was awful while I was there. ATT was fine, but their call quality and service was crappy. T-Mobile coverage is awful but service is good. That's why I chose Sprint. Best mix between coverage and service.

I agree, I think none of the cell companies are the best, they all have drawbacks.

 

[Mister Snitch]

Seidenberg... asked, "Why are we in your doghouse here?"

Lessee... because you're just another visionless, overpaid corporate yahoo?

That answer works for me anyway....

I don't care if they have the best coverage on the east coast. I will never go back to Verizon. They are scumbags.

They truly are despicable. And I didn't just deal with them as a customer - I had to deal with one of the higher-ups in a business capacity. This guy was greasy and despicable, but he held his position because he knew how to intimidate people around him. That's all he had going for him though - he knew how to play the corporate game. For all the grumbling about dealing with Steve Jobs, Jobs has integrity, style and vision. (You could make a case, in fact, that Jobs does NOT know how to play corporate games, since he managed to get himself ousted from his own company.)

 

[Zepaw]

Yes please! Last month I moved from an area with full AT&T signal to one with none at all, but a very robust Verizon network all around me. I will jump on a Vz iPhone the day it comes out.

 

[LagunaSol]

It will be interesting to see how Android competes with iOS on a level playing field in the U.S.

Watch for "Buy One Get Six Free" Android device deals in 2011.

(Now how about an iPhone on Sprint and T-Mobile too?)

 

[Rocketman]

Verizon's reliance on less ubiquitous CDMA put it in a weak negotiating position. But Apple went to them first because they were "local". Had they gotten on board and ceeded to the revenue sharing on that small incremental business for them, they would be in the cat bird's seat now.

As it is, Apple made a deal with a far wider distribution firm with a network rollout plan WORLDWIDE that was about as aggressive as Verizon's in the USA.

Now AT&T has almost as many subscribers as Verizon, due in large part to Apple.

Crockodile tears ignored.

Rocketman

 

[dwd3885]

It will be interesting to see how Android competes with iOS on a level playing field in the U.S.

Watch for "Buy One Get Six Free" Android device deals in 2011.

(Now how about an iPhone on Sprint and T-Mobile too?)

personally, I don't think android will see much drop. Sure many people will get the Verizon iPhone, but android is not just for advanced phones anymore, there are lower priced phones initially and come in different shapes and sizes.

 

[nwcs]

I'm sticking with AT&T for now but I think this is great for the platform. I just hope I can write my first iOS application before it hits. That way it'll be ready and available for new customers!!

 

[kcmac]

Verizon guts features from phones and makes you pay extra to add them back in. Am anxious to see if they would let the iPhone operate completely as we know it or use their same bag of tricks and cripple it in some way.

 

[BJMRamage]

I think it would be a "hoot" to see Apple bring the iPhone to very carrier EXCEPT Verizon in the US. that would really make a laugh at all the rumors and make Verizon users possible jump ship once they see Verizon doesn't have the pull they'd like. Doing this, Apple would have more "possible" users for the iPhone.

However, with the iPad sold at Verizon stores I can see a vPhone sooner than later.

Every Cell company has crap service for me, the iPhone has been the best phone/carrier I have had....been on Vzw/att/Cing/att/tMob

 

[roland.g]

The only confirmation worth anything is a media event with Steve on stage.

 

[g4Fever]

I'm on Verizon.. it's the only cell service that works everywhere I go.

AT&T.. T-Mobile.. Sprint.. simply doesn't work where I live.

I'm using a Palm Pre and it works great. Use it as a mobile hot spot with my PowerBook G4.. Palms WebOS, in my opinion, is far superior to Android.

Android feels like a clunky Linux distro.

I'm looking forward to the iPhone coming to Verizon and will definitely be picking one up.

 

[Geckotek]

Keep guessing every few months and someone will get lucky eventually, when Verizon can handle both voice and data at the same time (they can't right now).

They can. Look up SVDO and VoRA.

Verizon's reliance on less ubiquitous CDMA put it in a weak negotiating position. But Apple went to them first because they were "local". Had they gotten on board and ceeded to the revenue sharing on that small incremental business for them, they would be in the cat bird's seat now.

What's a "cat bird's seat"?

As it is, Apple made a deal with a far wider distribution firm with a network rollout plan WORLDWIDE that was about as aggressive as Verizon's in the USA.

What distribution firm is that?

The only confirmation worth anything is a media event with Steve on stage.

Some people prefer to remain ignorant until the last minute, some of us like to follow rumors in search of the truth a bit earlier than the general public. That would be why this site exists...am I right?

Verizon guts features from phones and makes you pay extra to add them back in. Am anxious to see if they would let the iPhone operate completely as we know it or use their same bag of tricks and cripple it in some way.

Take a look at an Android phone. They've already cut back on their evil ways.


Interestingly enough, I never had the billing issues several on here have experienced. Also, Verizon CS was very very good to me. It may be because I was managing a corporate account that spent 10's of thousands of dollars a month.

 

[goobot]

have any of the sources actually have sources? in the past they just made up stuff/copied off of other rumors. and in this case those rumors had 0 info compaired to the others in the last 3 years. untill we have good reliable sources or a leak there is no cmda iphone.

 

[ten-oak-druid]

I feel confident there will be a Verizon iphone in 2012. Not in 2011 though. I think Verizon will have the next generation network (LTE) built up more and ready to go with a better iphone than you would have rushing it with CDMA.

These things take time so if the Verizon iphone rumors are starting to sound more credible, it doesn't mean its happening next week, month or year.

The timing would be perfect since Apple's contract with ATT goes through 2012. It was revealed in a court case against apple and all the stories since about a contract being reworked are hopeful speculation.

For those hoping for a Verizon iphone, 2012 is better than 2011. The phone you would get would be better. I am a verizon customer thinking of getting an iphone now. I've pretty much decided to take the leap and do it expecting that when the contract ends, the Verizon iphone would be relatively new and I would have an option to return to Verizon if I wish.

If I am wrong, and I doubt that I am, and a 2011 Verizon iphone appears, it sounds like I would want to wait until the next generation anyway. As much as I have been happy with verizon for having better coverage in specific areas I need it, it looks like the iphone on CDMA would be limited based on comments I have read on this forum. So if I were willing to accept a slight decrease in coverage for my needs in exchange for the perks of an iphone, why would I want the more limited iphone option?

I would hope that when ATT loses the exclusive contract that Apple expands to more additional networks than just Verizon. I think the iphone is a big enough hit that Apple can expand to all US carriers and negotiate good terms.

In the long run, I hope that Apple gets into the business of building wifi towers and sets up its own network. You could hear Steve Jobs take a shot at the cell phone carriers when introducing the new ipod touch. He said something along the lines of it "being a cell phone without the contract". To me that sounded like he was thinking of breaking free from cell phones in the future. The iphone/ipod touch has better options and performance with wifi anyway (facetime, better video streaming). Picture being able to get onto an Apple wifi network anywhere you go for a monthly fee and using skype or some future Apple application to make phone calls from the device. As Steve said "a cell phone without the contract".

 

[skeep5]

yeah the whole mystery charges settlement thing is pretty scary, even thought their coverage is better I like my data/voice simultaneous thing i got goin on. Good luck verizon bandwagoners!