Earlier this week, Google and Verizon got together to announce the launch a strategic partnership between the two companies to bring Android based handsets powered by Verizon Wireless network to the market. According to the analysts at IDC, this could well signal the end of any possibility of a partnership between Verizon and Apple to sell the iPhone through their network.
According to IDC, the partnership seems to be closed from both the ends. Although iPhone users have expressed their displeasure over AT&T's coverage time and again, Apple does not seem to be in any hurry to open the iPhones to another carrier. A recent report by iSuppli Corp in fact predicts an extension of the exclusive partnership beyond 2010.
On the other hand, Verizon has a lot of reasons to sit pretty. With the partnership with Google in place, IDC claims that Verizon in the near-term future shall solely be focused on bringing Android handsets to the users. A recent Gartner study predicts a surge in the sales of Android handsets in the next few years that could make Android the platform with the second highest market share, ahead of the iPhone, by 2012.
Another factor that could make Verizon choosy in its partnership is its superior network. In a bid to position itself as a superior network over other carriers like AT&T, IDC's Scott Ellison predicts Verizon to push its data rates up by next year. The message, he says, is for the users to either pay more for superior network or suffer poor connectivity with cheaper carriers like AT&T. This could also help keep data usage low thus strengthening its claim to be a superior network. Verizon is unlikely to convert to an LTE network anytime inside the next two years that will make it capable to carry the GSM-oriented iPhone.
AT&T's plan to build additional capacity with the construction of an HSPA 7.2 network in 25 cities is likely to be completed only by the end of 2010 and so it is going to be one more year before iPhone users in the US can expect improved network services. With Verizon mulling over an increase in data rates, and the AT&T Mobility CEO hinting at rationing of data usage, we wonder which is the lesser of the two evils. Which one would you choose? Please let us know in the comments.
[via ComputerWorld]
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The iphone is a goliath not the carriers. The problem with the iphone is that it holds over 50% of the smartphone (across carrier) market share. If Verizon gets the iPhone, it will no longer have the "superior" network.
ATT's network got smashed exponentially due to the high usage of the iPhone and they now have the experience and solution. Expect Verizon to suffer the same problems when they get enough data usage on their network at the level that ATT does today.
Personally, I don't have problems on ATT and I won't be switching anytime soon unless there's real good reasons to do so.
I as well do not have problems with the AT&T network. i have an iPhone and a sierra wireless usb internet card. it is RARE that i dont have service, and i work offshore with plenty of other guys that have Verizon, Sprint, Boost, ect. They ask to borrow my phone because theirs doesnt work… not once have i asked to borrow theirs. also, where are all these claims of dropped calls?? I talk a good mit on my phone and i might drop a call, say once a month? why do they say that Verizon's network is superior? My toolpushers Verizon air card reaches speed of 175kb/s peak on their 3g coverage, where my AT&T aircard sees >200kb/s quite often. Even with the great load put on the network with the iPhone, they are doing well, i feel.
iPhone is 40%, android is 7%, webOS is 4%. info from iPhone buzz
Feb 5, 2008 iPhone had 28% of market
Dec 2, 2008 iPhone had 30% of market
Where do you get your info? i try to keep up, maybe i have missed somthing???
Blackra1n is out! Check it out… http://iphonejtag.blogspot.com/
This is not a good thing either way. Both networks are working towards data limitations. In the end we (the users) suffer.
We need a full scale data infrastructure that can handle the iPhone and beyond.
The fact is that current service providers are afraid to have the iPhone.
Data usage is on the rise and will increase as time goes on. Trying to limit and control it is useless. Monthly bills are at the limit for most consumers. So what can a phone company do? Limit usage.
Verizon is holding onto old habits, keeping manufactures at bay, holding back on basic features. It will be interesting when they roll out the new 'Google' devices and have the same 'strain' on their network as ATT did with iPhone.
Verizon may think they have the upper hand, but users of these devices are bandwidth hogs.
I bet Verizon is just as encumbered as ATT after the rollout. I'll go further and say that Apple will eventually win. They have the better interface and design. Goggle is not real competition for Apple.
Verizon, like ATT is bitting off more than it can chew, in an effort to compete.
Just my two cents.
I agree with Ray here. I was an AT&T customer long before the iPhone 3G was out (2G was out, but clearly there were not nearly as many of those sold) and I never had voice or data issues. Of course I was using a WAP browser on an EDGE network.
I am no huge fan of AT$T. Their "customer service" is legendary in how BAD it is.
However, I have really never had any network problems. The 3GS slows down sometimes but I dom't drop calls ever. And EDGE is almost 100% reliable, though slow.
Verizon may suffer from my Charlemagne in life: Careful what you ask for.
Att is doing the best they can. I rarely have problems. By the way– VERIZON SUCKS! They have 0 bars in my town; att has 5. I have a tower outside my kitchen window.
I am an X ATT user… i switched to verizon because theres much better service at my office, however since switching I have been trying to make due with the blackberry storm… I HATE IT… I am going to pay the early cancelation fee next month n go back to my beloved iphone… The verizon netowrk is alot better, but who cares because theres no phones on their netowrk that can fully utilize the awesomeness of the carries
Welcome back to the iPhone world Payne. Good decision!
- I love iPhone.. I wish that ATT comes with a proper plan and improve their network so that it can be scaled to any level.. and not just satisfying the current need. It looks like the need for data is never going to end and the need will only keep increasing..
- Well I am not convinced having 4-5 bars on iphone means good connectivity.. while typing this i just checked my bars which said 4 bars.. and i called to my office and the call got dropped.. i went into Airplane mode and back.. and now it shows 3 bars.. !!