Verizon Prepared for the iPhone; Network Capable of Handling Extra Traffic

Verizon attacks AT&T 3G once again in ads

In an interview with BusinessWeek, Verizon Wireless' Chief Technology Officer, Anthony Melone said that his company is prepared for the iPhone.

Melone said: "We have put things in place already. We are prepared to support that traffic."

Does that mean iPhone will be coming to Verizon soon? We have heard conflicting reports.

Shaw Wu, an analyst with Kaufman Bros. sees Verizon's aspirations to be incompatible with Apple's very own business aspirations that  could eventually be the reason why the two companies will not come together to sell the iPhone in the near future.

Thomas Weisel analyst, Doug Reid predicts that given the recent spate of promotional attacks unleashed by Verizon against the iPhone as well as its growing proximity to Google, Apple's next carrier partner might not be Verizon after all. Doug claims that the AT&T exclusivity could be ended with a partnership with Deutsche Telekom's T-Mobile instead. 

But there are some analysts who believe that there are high chances that the iPhone will come to Verizon. Not only has the carrier expressed its interest in partnering Apple, but also there have been reports about Apple building a UMTS/CDMA hybrid iPhonewhich is due to be launched next year. Besides, it is already known that Verizon is building a next gen LTE network due to be deployed by late next year or 2011. Also, being the largest wireless carrier with 71 million subscribers, it makes business sense for Apple to expand their market by partnering with Verizon.

Melone supports his claims with some numbers. Verizon has invested $19 billion in upgrading its wireless network over the last three years or about $6.3 billion a year. He says: "It comes down to backing that process with money. We've been more consistent than any carrier in the last 10 years investing year over year."

He also believes that Verizon will not have problems that AT&T has faced due to surge in traffic, which has increased 4000% in just over the past one year or so.

He says: "We will handle it if we ever get it". It is the last thing Ralph de la Vega, CEO of AT&T Mobility probably wanted to hear, especially since he recently conceded that the Bay area along with New York were still areas where their network was performing at levels below AT&T's standards

What do you think?

[via BusinessWeek]

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