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]