
Apple
is more likely to bring the iPhone to Verizon once the cellular company
deploys its fourth-generation network, claims Verizon’s chief executive.
That’s
because Apple was never very interested in Verizon’s current CDMA
cellular standard, which is less popular among cellphone networks
outside North America, Verizon CEO Ivan Seidenberg told The
Wall Street Journal.
Therefore, Verizon’s upgrade to 4G
in 2010 should rectify the issue. Verizon will adopt a standard
called Long Term Evolution (LTE), which many domestic and international
carriers plan to use for their next-generation networks as well. For Apple, that should mean more potential iPhone customers and fewer troubles in terms of hardware production.
But wait. Didn’t Verizon say in 2007 that it rejected Apple’s iPhone,
rather than the other way around? Then, Verizon complained about
Apple’s control over distribution, which is a non-issue now that
iPhones are being sold in Wal-mart, Best Buy and AT&T stores.
Verizon also moaned about Apple’s desire to handle all the customer
care — but that shouldn’t be a problem anymore, either, since Apple is the big leader in the latest customer satisfaction survey.
Still,
Verizon spurned Apple. And Apple could lose face if it warms
up to Verizon so easily after such an emphatic rejection. We’re not satisfied that scoring
the iPhone will be so easy for Verizon, but we definitely think it would be
a wise, crucial move for Apple. Below is a list of reasons why we think a deal makes sense. If you agree, we encourage you to add your own reasons. If you disagree, well, we welcome those
comments, too.
Verizon’s Reputation for Its Superior Network
Let’s start with the obvious: Everyone will agree that Verizon generally has better call and data quality than AT&T. Surveys say so,
too. Many Verizon customers resist the iPhone because they don’t wish
to sacrifice reliable call reception and consistently zippy downloads.
We’re
not taking sides here, but AT&T has the opposite reputation. "Dropped calls" and "no signal" are phrases commonly heard when discussing AT&T’s service quality. By expanding to Verizon, Apple will
undoubtedly further its iPhone penetration in the United States.
Sharing Is Caring
AT&T will never, ever admit this, but its current 3G networks
are evidently overloaded, due in large part to the iPhone’s booming
success. In August, Wired.com conducted a global study showing that iPhone data speeds were suffering on the U.S.
AT&T network, when compared to Europe’s fine-tuned 3G networks. And
several iPhone customers have been so dissatisfied with network issues that they filed lawsuits accusing Apple of making false advertisements about the iPhone 3G’s performance.
Why
not share the responsibility of carrying the iPhone? It’ll amount to
less money for AT&T, but less trouble for Apple and less anguish
for customers. Better service equates to more satisfied customers and
fewer lawsuits. It’s your basic win-win.
Polygamy = More Control, Power
For manufacturers, working with multiple partners is strategically wiser than working with only one. Take the iPhone’s components,
for example. Apple doesn’t rely on a sole supplier for each part of the
iPhone; it buys from various suppliers so one doesn’t have too much
bargaining power. If one partner is asking for too much money, you
threaten to ditch it because you have multiple partners. Simple, right?
So
here’s where a ménage à trois with AT&T and Verizon would be great.
Apple could potentially ask for a bigger slice of the pie when it comes
to iPhone revenues, because it could threaten to leave either of them
for the other. Ultimately, this gives Apple more control over how it
handles the iPhone. And we all know how much Apple loves control.
Competition Is Good
Economics
101: Throw Verizon into the boxing ring with AT&T, and both
companies will likely reduce monthly costs for the iPhone for the sake
of competition. I’m tired of paying $80 a month for my minimal
iPhone plan, aren’t you? And, again, cheaper monthly plans
will attract more customers to the iPhone. Even the naysayers might be tempted.
We’re
going to leave you to continue this conversation. Do you think Apple
should work with Verizon to carry the iPhone? Whether it’s yes, no or
maybe so, add your thoughts in the comments below.
Photo: Seenya Rati/Flickr

