(BN) Apple Shuts Out Verizon on IPad as AT&T Feels Strain

[studangerous]

Bah... more cr@pness for the US.. not that I'm bothered as I have all three operators selling iPhones in my country and so we have great 3G connections and speeds in the city centres plus tethering and MMS etc. etc..

Apple Shuts Out Verizon on IPad as AT&T Feels Strain (Update1)
2010-01-28 14:54:35.744 GMT


(Updates share prices in 13th paragraph.)

By Amy Thomson
Jan. 28 (Bloomberg) -- Apple Inc. dealt Verizon Wireless investors and customers a blow by naming AT&T Inc. as the provider of wireless service for its tablet computer.
Verizon Communications Inc.’s stock fell as much as 2.2 percent yesterday after Apple said AT&T would sell wireless plans for versions of the iPad that work with phone networks.
The iPad may generate $100 million in earnings a year for AT&T, Piper Jaffray & Co. analyst Chris Larsen said.
The choice to leave out Verizon was a surprise, given that AT&T has faced complaints from consumers that its network is overloaded by the iPhone, said Allen Weiner, an analyst at Gartner Inc. IPhone users typically consume twice the bandwidth of other smartphone customers, which has strained AT&T’s network, according to Sanford C. Bernstein & Co.
“AT&T is going to need to make some sort of statement or some sort of acknowledgement that they’re up to the test of supporting this,” said Weiner, who is based in Scottsdale, Arizona. He said he was “shocked” that Verizon wasn’t chosen as the network provider.
AT&T uses a technology known as Global System for Mobile Communications, which may explain why Apple chose the network, said Piper Jaffray’s Larsen. GSM is used in large markets outside in the U.S., including Europe. Verizon may be shut out of devices similar to the iPad until it begins upgrading its networks to a global standard this year, he said.

‘Ship Everywhere’

“If you can pick one device that you can ship everywhere, you’re going to bring down your manufacturing costs, you’re going to bring down your shipping costs,” New York-based Larsen said in an interview. “Verizon is going to be at a disadvantage.”
Some customers expected Apple to announce a Verizon iPhone, Stifel Nicolaus analyst Christopher King said in an interview from Baltimore. Apple didn’t mention Verizon at its product introduction yesterday.
Brenda Raney, a spokeswoman for Basking Ridge, New Jersey- based Verizon Wireless, declined to comment. AT&T is proud to support the iPad, spokesman Mark Siegel said.
AT&T is planning to improve its systems, particularly in San Francisco and New York. Mobile chief Ralph de la Vega has said performance is below AT&T’s standards in those cities.
Apple Chief Operating Officer Tim Cook said this week that he has reviewed those plans and supports AT&T.
King said Verizon Wireless, co-owned by Verizon Communications and Vodafone Group Plc, probably will still get the iPhone eventually. iPhone customers spend about 80 percent more that subscribers without smartphones, according to AT&T.

Wireless Saturation

Verizon’s chief financial officer, John Killian, said this week that devices like Apple’s tablet computer will be beneficial to the industry, helping to attract data customers.
Both carriers are looking for new ways to grow as the market for wireless customers becomes saturated. The CTIA wireless industry association said there are enough mobile devices for almost 9 out of every 10 people in the U.S.
The new tablet has a touch-screen keyboard and 9.7-inch
(25-centimeter) display for viewing Web pages, online books and videos, Cupertino, California-based Apple said yesterday. AT&T will sell unlimited data plans for $29.99 a month when the 3G model goes on sale in the U.S. in April.

Improving Networks

Dallas-based AT&T fell 24 cents to $25.38 in New York Stock Exchange composite trading at 9:50 a.m. Verizon dropped 53 cents to $29.34. Apple declined $5.69 to $202.19 in Nasdaq Stock Market trading.
AT&T has an exclusive, multiyear agreement to offer service for the iPhone, which went on sale in June 2007. Neither Apple nor AT&T has disclosed the terms of that contract. Analysts have said that Apple may offer the iPhone through additional U.S.
mobile-phone carriers later this year.
AT&T will have to prove to customers that its network can handle the additional capacity crunch, said Piper Jaffray’s Larsen. The carrier ranked last among the top four in the U.S.
in customer-satisfaction ratings, according to a Consumer Reports survey released in December.
“The clock is ticking,” Larsen said. Apple executives must believe “AT&T really does have a plan to vastly improve their network, and we’re trusting that they’re going to do that in the next 90 days.”

[Jawcl]

Oh come on! No!!!

[Happyman7]

I think Apple choose AT&T because they know they are not *the best* service providers out there, and want to help. Apple could just make it so you could have GSM and Verizons' thingy.
I have Verizon and it is just wonderful, when I look over at iPhone users and other AT&T-ers I notice that they have not that many bars... (just sayin')

iPad would probably become much more successful if they use Verizon.

That is my opinion and if you don't like it, well I don't give 7 shits.

[Fenderboy]

oh pooh

[Tsubame]

Considering the iPad is unlocked, is there anything keeping Verizon from making a micro-SIM you can use in your iPad? I don't think upgrading their networks is unfeasible, honestly.

[ChronicFunk]

Originally Posted by Happyman7

I think Apple choose AT&T because they know they are not *the best* service providers out there, and want to help. Apple could just make it so you could have GSM and Verizons' thingy.
I have Verizon and it is just wonderful, when I look over at iPhone users and other AT&T-ers I notice that they have not that many bars... (just sayin')

iPad would probably become much more successful if they use Verizon.

That is my opinion and if you don't like it, well I don't give 7 shits.

Not everyone can offer Verizon. For $30 a month, it seems pretty good especially with the $15 plan. Verizon would have made an offer of like $45+. AT&T will get there shit together and this iPad will help if many buy the plans for it. The more money AT&T gets, the better chance of them improving their network.

Oh and let me throw in a nice smart ass comment too just to look cool.
That is my opinion and if you don't like it, well I don't give 7 shits.

[SiXAXiS]

Originally Posted by Tsubame

Considering the iPad is unlocked, is there anything keeping Verizon from making a micro-SIM you can use in your iPad? I don't think upgrading their networks is unfeasible, honestly.

I am pretty sure that would cause some legal issues.

Also, if AT&T will be making $100mil/year, they should consider investing in servers, and improving their networks; spreading it around more and making it even faster.

That is the only downfall of AT&T now... not everyone can access it.

[Pablojrz]

Yay for having a giant AT&T cellular tower right next to my house! (it's not even a block away)

[SiXAXiS]

Originally Posted by Pablojrz

Yay for having a giant AT&T cellular tower right next to my house! (it's not even a block away)

Win, and yay for having all bars in all of Las Vegas!

[exit1010]

Well Verizon can live without it. Apple and Verizon were not meant to be together. I have Verizon and I am proud to have my 5 bars every where I go. Maybe Verizon need to broaden it service in other countries and compete with AT&T.