Verizon Wireless Said to Start Offering IPhone in January

By Amy Thomson - Jun 29, 2010
From: http://www.bloomberg.com/

Verizon Communications CEO Ivan Seidenberg speaks to the Economic Club of Washington. Photographer: Brendan Hoffman/Bloomberg

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June 29 (Bloomberg) -- Ashok Kumar, senior technology analyst at Rodman & Renshaw, speaks about Verizon Wireless offering Apple Inc.'s iPhone in January 2011. Verizon, the largest U.S. mobile-phone company, will start selling Apple's iPhone next year, ending AT&T Inc.’s exclusive hold on the smartphone in the U.S., two people familiar with the plans said. Kumar talks with Matt Miller, Carol Massar and Cris Valerio on Bloomberg Television's "Street Smart." (Source: Bloomberg)

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June 29 (Bloomberg) -- Brian Marshall, an analyst with Gleacher & Co., and Chandan Sarkar, analyst at Auriga Securities, speak about the outlook for AT&T Inc. Verizon Wireless, the largest U.S. mobile-phone company, will start selling Apple Inc.’s iPhone next year, ending AT&T’s exclusive hold on the smartphone in the U.S., two people familiar with the plans said. They talk with Pimm Fox on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

Verizon Wireless, the largest U.S. mobile-phone company, will start selling Apple Inc.’s iPhone next year, ending AT&T Inc.’s exclusive hold on the smartphone in the U.S., two people familiar with the plans said.

The device will be available to customers in January, according to the people, who declined to be named because the information isn’t public. Natalie Kerris, an Apple spokeswoman, and Jeffrey Nelson, a Verizon Wireless spokesman, declined to comment.

The iPhone, which has been the sole domain of rival AT&T in the U.S. since June 2007, will give Verizon a boost in its competition for smartphone customers, UBS AG analyst John Hodulik said in an interview. Verizon customers, who numbered 92.8 million at the end of the first quarter, may buy 3 million iPhones a quarter, he estimates.

“Apple is going to dramatically increase the number of devices it sells in the U.S. when exclusivity at AT&T ends,” said Hodulik, who is based in New York and rates Verizon shares “neutral.” “It’s hard to ignore the quality issues that AT&T has faced.”

Verizon Wireless, which is building a high-speed fourth- generation network, plans to unveil several devices that will run on the new technology in January at the Consumer Electronics Show, Chief Executive Officer Lowell McAdam has said.

IPhone Gains

Verizon Communications Inc., which co-owns the wireless company with Vodafone Group Plc, slid 9 cents to $28.62 in New York Stock Exchange composite trading at 4 p.m. AT&T fell 49 cents to $24.46. Apple, based in Cupertino, California, dropped $12.13 to $256.17 on the Nasdaq Stock Market.

Peter Thonis, a spokesman for Verizon Communications, and Mark Siegel, an AT&T spokesman, declined to comment. Tenille Kennedy, a spokeswoman for Research in Motion Ltd., didn’t return a call seeking comment.

The iPhone has helped AT&T add subscribers even as the U.S. mobile-phone market nears saturation. There are enough wireless devices for more than nine out of 10 people, according to the CTIA wireless industry association.

In the first three months of this year, about a third of AT&T’s iPhone activations came from customers who were new to the carrier. Without those 900,000 new subscribers, the company may have posted a loss in contract customers that quarter, analysts said.

Still, Dallas-based AT&T has battled customer complaints about its wireless service, especially in New York and San Francisco, and dedicated an extra $2 billion to upgrading its network this year.

BlackBerry, Android

For Apple, a partnership with Basking Ridge, New Jersey- based Verizon Wireless is a victory over rivals such as RIM and Motorola Inc., whose smartphones are currently promoted by the carrier.

“For Apple it means a larger addressable market,” said Andy Hargreaves, an analyst at Pacific Crest Securities in Portland, Oregon. “It’s also good news for Apple in that it will spread the load on the wireless data networks, which will be good for their customers.”

Motorola, which makes Droid phones that use Google Inc.’s Android operating system, fell 27 cents, or 3.8 percent, to $6.80 on the New York Stock Exchange. Google dropped $17.82, or 3.8 percent, to $454.26 on the Nasdaq. RIM, maker of the BlackBerry, declined $3.22, or 6.1 percent, to $49.75.

Apple has sold more than 50 million iPhones since the phone’s introduction in 2007. The latest version, iPhone 4, sold more than 1.7 million units in the first three days after its June 24 debut, a record for the product. Chief Executive Officer Steve Jobs said the company didn’t have enough supply to meet demand. Many stores, including retailer Best Buy Co., sold out.

A release at Verizon in the first quarter will help Apple’s sales in the U.S. grow to at least 15 million units next year from 11 million in 2010, Barclays Capital analysts said in a note today. The company’s suppliers have been ramping up production of components for a phone on Verizon’s CDMA network, according to the research report.

To contact the reporter on this story: Amy Thomson in New York at athomson6@bloomberg.net

Verizon Wireless to carry Palm Pre, Storm 2 "in about six months"

by Darren Murph

Think you'll have to wait until June 6th for all the Pre surprises to emerge? Think again. A breaking Reuters report has just dropped one of the biggest cellular bombshells of the year: Verizon Wireless, America's largest mobile operator, will soon be carrying Palm's Pre. Oh, that's not enough? No worries -- it'll also be selling a "new version of the touchscreen BlackBerry Storm," which is obviously the Storm 2 that we've been toying around with. The report makes clear that both phones would be cleared for shipment in around six months, which certainly jibes with whispers we've heard about Sprint's mighty short exclusivity period. The news came from the company's Lowell McAdam, the top executive for the venture of Verizon Communications and Vodafone. To quote: "Over the next six months or so you will see devices like Palm Pre and a second generation Storm." First Sprint, then AT&T, and now Verizon? T-Mobile, where you at?

AT&T stores now offering early upgrade pricing on iPhone 3G

By Kasper Jade

Published: 11:00 AM EST

In the latest move aimed at helping Apple clear inventory of iPhone 3Gs ahead of new models anticipated this spring, AT&T retail stores are now offering some customers early upgrades to the Apple handset at subsidized pricing.

The silent offer, which began this week, is being extended to customers on a case-by-case basis. Typically, the carrier would only offer non-iPhone customers the option to upgrade from their non-Apple phone to an iPhone 3G at the $199 (8GB) and $299 (16GB) subsidized price points after their 24-month contract had run its course.

However, AT&T representatives have confirmed to AppleInsider that as of this week the company is waiving the upgrade clause for customers who are approximately 14 months into their two-year contract.

The waiver isn't bound to strict terms, however, meaning that retail employees are free to grant upgrade pricing for customers who may not be quite as far into their 2-year contract, but that determination is to be made by the employee after accessing and reviewing the customer's account history. Other factors like long-term loyalty to AT&T may play into the decisions.

The move follows similar initiatives by both Apple and AT&T to rid their stores of lingering iPhone 3G inventory. Both companies on Thursday began offering the handset at a "no commit" price of $599 for the 8GB version or $699 for the 16GB model.

AT&T is extending the offer only to existing subscribers and is limiting sales to just one iPhone. Apple, however, is willing to sell the phones to anyone who walks into its stores and isn't limiting the number they can purchase.

Apple is widely expected to unveil new iPhone models at its June Worldwide Developers Conference.

Giz Explains: How Cell Towers Work

By Wilson Rothman

I recently visited a cell site shared by Clearwire and two other unnamed carriers—without frying my nuts. We've all driven past them so many times, but have you ever actually wondered how they work?

How They Work
Whether it's handling simple phone calls or 12Mbps WiMax data, cell sites are organized with more or less the same flow:

• A cellphone or modem radios the nearest towers, saying, basically, "I'm here!" When you make a call or logon, your phone then sends a message via radio that's picked up by the antenna array.

• A wire or fiberoptic line carries the call down to the wireless access point, connected to a multi-port switch.

• The call, along with many others, gets routed to a backhaul, usually down to an underground wired T1 or T3 line, but sometimes back up the mast to a powerful line-of-sight wireless microwave antenna. They resort to wireless either when they don't have a ground connection, or when the ground connection sucks.

• The incoming call or data comes back from the backhaul and up through the switch to the antenna, where it then hits your phone wirelessly, presuming your phone is still communicating with the same site. If you are moving, then there's a handoff—a new but more or less identical cell site transmits the data to your phone, once your phone checks in and says "I'm here."

All of this happens in the blink of an eye.

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The Gear
Clearwire, who gave me the tour of the cell site during my WiMax test run, is a new company, only just now deploying their network, one that is only focused on data, and not on voice calls. This means they don't have a bunch of sites already established like other carriers (though their recent acquisition by Sprint may change this). But it also means their cellular gear is modern and compact compared to the others.

For instance, the carrier whose name probably starts with A keeps its gear in a bunker like the Endor moon one that Han Solo & Co. were trying to bust into in Jedi. The backup batteries must be enormous, because there's a sign on the door that says, "Danger - Corrosive Liquids - Wear Protective Equipment."

Clearwire, by comparison, has a high-school locker for its gear—one that is built somewhere else and just trucked to the location. You attach it to the on-site power, run lines and antennas up the mast, and either bolt the sucker to a cement foundation or to the side of a steel post, and voila, you are done. It uses two car batteries for its backup power—enough juice to last six hours and they don't have to wear a hazmat suit to service it. (It can also run off of a portable generator.)

In this particular site, the carrier whose name may start with a V had a set of three larger lockers, not the huge bunker that its competitor had, but a serious array nonetheless. As you probably guessed, each carrier locks up its own facility, so I wasn't at liberty to fully inspect the other guys' gear—or even confirm their identities.

Clearwire also runs skinny fiberoptics up to the top of the tower, instead of the thick insulated copper cables that the old boys' networks run. Again, this has more to do with newness than simple common sense, but it may mean cell towers could be a little slimmer in the future.

So what happens up top?
The real demystification was the antenna array itself. I for one did not know a lot about how things were set up, and now I know a tiny bit more, which I will share:

• The huge antenna masts can have multiple carriers, each with its own triangular platform and antenna array.

• The reason the platforms are triangular is so the 360-degree coverage can be split into 120-degree pie pieces, which—if you look closely—can be subdivided again into 40-degree slices for increased, pinpointed coverage.

• If there's a white disk-shaped antenna among the array, it means that the carrier has a line-of-sight microwave backhaul. Clearwire's can handle 80Mbps at the moment, but must be directly in line with another microwave antenna. (Speaking of fried nuts, I wouldn't want to stand between two of those.)

Don't forget to read our exclusive uncapped WiMax road test—featuring blistering wireless speeds!

AT&T has announced that they are now offering free Wi-Fi access to iPhone subscribers across the U.S.

AT&T knows Wi-Fi is hot, and FREE Wi-Fi is even hotter. Which is why FREE AT&T Wi-Fi access is now available for Apple iPhone at thousands of hotspots nationwide, including Starbucks*. Users can relax and access music, email and web browsing services with their favorite blend in hand from the comfort of their nearest location. For information visit www.att.com/attwifi.

AT&T provided a number of early hints that the service would be coming. AT&T has also sent out an SMS message to iPhone users announcing the plan.

Customers can locate Wi-Fi spots through AT&T's online tool or can locate a Starbucks using this tool. In order to access AT&T Wi-Fi from your iPhone, you must follow these steps:

- Activate Wi-Fi from the settings icon on your iPhone
- Select "attwifi" from the list of available networks
- Enter your 10-digit mobile number and check the box to agree to the Acceptable Use Policy. Tap 'continue'
- You will receive a text message from AT&T with a secure link to the AT&T Wi-Fi hotspot. You will not be charged for the text message.
- The SMS link will only be valid for 24 hours at the location it was requested. Another request must be submitted when using another hotspot location.
- Open the text message and tap on the link for 24-hour access to the AT&T Wi-Fi hotspot