2010 iPhone: Can you hear me now?

On January 9, 2007, Apple announced the iPhone.  Unfortunately, they also announced a two year exclusive carrier deal with AT&T.  One year later, due to the massive success of the product, that contract was extended into 2010.  Now, that new deal is also nearing its end.  AT&T is doing its best to extend the contract once again, but likely will not be successful.  Recently, Apple has been in quiet discussions with a number of major wireless carriers.  The rumor mill has been favoring Verizon, the same company that originally turned down the opportunity to carry the iPhone.  However, legitimate evidence has emerged that places Verizon ahead of the pack.  Sources close to both companies told USA Today that Apple and Verizon are in "high-level" negotiations about a Verizon iPhone in 2010.  The deal would require the iPhone to be tweaked for the CDMA network that is used by Verizon, as opposed to GSM, the structure used by most other carriers.

If Apple made the decision to produce a Verizon iPhone, it would give them access to nearly 87 million subscribers, as opposed to 78 million on AT&T.  The negotiations could also be a ruse, intended to force AT&T to agree to a better deal.  However, Verizon recently acquired Alltel Wireless, which has made it the largest carrier in the United States, in terms of subscribers.  If Apple is looking to expand its network, Verizon would be the way to go.

-John Sherman

Y2K Digital

Comments

[Hutch]

If I were Apple, I wouldn't limit the exclusiveness to one provider. Why not have an iphone on AT&T AND Verizon?

[John Sherman]

The rights will be extended to include both carriers.