Additionally, Verizon Wireless’ top executives, Lowell McAdam and Ivan Seidenberg, have seemingly given Fortune some details on the Verizon-Apple relationship. According to McAdam, Steve Jobs wanted to do business with Verizon both in 2005 and 2007, but he wanted too much control over how and where the devices would be sold, including a big cut of the monthly service fees.
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.”
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.”
Consumers will benefit by not having to switch to AT&T for the iPhone, Verizon will gain plenty of new subscribers, and Apple will finally be able to reach the customers of the number one carrier in the US. The year 2011 is surely going to be one to watch closely.
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