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Fortune: Verizon To Sell CDMA-Based iPhone 4 From Early 2011

October 30th, 2010 10:33 admin Leave a comment Go to comments

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With two major publications – Wall Street Journal and New York Times already reporting about the arrival of the CDMA iPhone on Verizon's network, rumors regarding its arrival on Verizon had gained considerable credence. A week later, it is the turn of yet another publication to talk about Verizon, Apple, the iPad's arrival on Verizon and of course, the CDMA iPhone.

Fortune has described the complex relationship that Apple and Verizon shared back in 2005  - it also discusses the kind of role Verizon CEO Ivan Seidenberg had to play in bringing the two back to the negotiation table – a good two years after their first run-in.

The origins of the relationship between Apple and Verizon dates back to 2005 when both the companies kicked off talks about the prospects of Apple bringing its (then) forthcoming iPhone to the US on Verizon's network. Post the talks however, Verizon turned down the offer because at that time, it was uncomfortable with prospect of it giving Apple considerable amount of control over the  entire tie-up. Another issue was the monthly revenue sharing agreement that Apple insisted upon. These conditions were not acceptable to Verizon – eventually leading to the deal never going through. 

These terms were however acceptable to AT&T, which quickly lapped on to the prospect of being an exclusive carrier to Apple's first mobile phone – and the rest, as they say, is history. With Apple getting busy with AT&T soon after, Verizon and Apple distanced from each other and wouldn't talk until 2007 when Apple was on the verge of announcing the first generation iPhone.

Verizon CEO Seidenberg was the one who initiated the talks for the second time and then learned that as much as Verizon was wary about Apple's control, the latter was also worried about launching iPhone on the Verizon's CDMA network. 

According to Fortune, Lowell McAdam who will be succeeding Seidenberg as Verizon's CEO contacted Steve Jobs after the iPhone was launched and AT&T's network in some areas crumbled under the pressure of the burgeoning demands of iPhone users:

He called Jobs in December 2007 and told him, "We really ought to talk about how we do business together. We weren't able to [reach an agreement] a couple of years before, but it's probably worth having another discussion to make sure we're not missing something." Jobs, according to McAdam, replied, "Yeah, you're probably right. We have missed something."

Fortune reports that a considerable number of AT&T users might shift loyalties to Verizon:

"Verizon's network –billed as the "nation's most reliable" — will be assaulted by millions of data-hungry users downloading apps, watching videos, and yes, even making phone calls. First in line to buy will be many long-suffering Verizon subscribers, who probably feel a little like Cubs fans in a crowd of Yankee supporters whenever they're around their iPhone-wielding friends.

Some 18% of AT&T iPhone users surveyed by Credit Suisse said they'd consider switching carriers if Verizon got an iPhone. Says current iPhone user David Geffen: "I can't wait to get the iPhone with Verizon."

With the recent arrival of the iPad in Verizon's retail stores for sale, 2011 surely seems to be the year when Apple and Verizon join hands – a good six years after their first tryst with each other.

However, according to Fortune's source, Apple will offer a CDMA version of iPhone 4 on Verizon's network:

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."

Are you waiting for Verizon to offer iPhone on its network? Is it your dream phone? Let us know your thoughts in the comments below.

[Via CNN Money]

Source: Fortune: Verizon To Sell CDMA-Based iPhone 4 From Early 2011

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