6/15/2007

And Verizon says - Oops!

Filed under: — menk @ 10:21 am

With the Apple iPhone ship date just 2 weeks away it is clear that AT&T will be snatching customers from the other wireless carriers just due to the fact that they have the iPhone. With over 18M people expressing considerable interest in having an iPhone even if it means switching wireless carrier the product will be a huge success and AT&T will be the primary beneficiary.

Verizon was initially approached by Apple to be the carrier for the phone. They declined based on Apple’s demands that they change certain aspects of their service to benefit the iPhone users. At this point however Verizon has to be bracing themselves for the rush of customers towards the door when iPhone launches. “Can You Hear me now?”

I personally know of dozens of current Verizon customers who will be acquiring an iPhone within days of launch despite the fact they will need to move their service to AT&T. It was foolish for the carriers (in particular Verizon) to believe that people actually value the carrier as opposed to the functionality of the device they choose to access the service. For a clear example of how network doesn’t matter just look at Internet Access. People care about their system (Mac, PC, etc.) not the way they access the network. This has resulted in cutthroat competition to somehow acquire customers for Comcast, Verizon, Earthlink and others because the network doesn’t matter. If it works one carrier is as good as another.

Keep watching as the realization dawns on Verizon that they have made a huge blunder. I predict that they will be paying a large sum to AT&T in a couple of years to remove the exclusivity clause from Apple’s contract just to get iPhone available to users that would prefer their network for one reason or other but not enough to use a lesser device on the Verizon network.

Is iPhone AT&T’s Magic Bullet? - WSJ.com

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