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The year's worst-kept secret is officially history: Verizon is getting the iPhone.
The announcement, which took place at a crowded press conference at New York's Lincoln Center, brings to an abrupt end AT&T's three-and-a-half-year exclusive agreement with Apple. For the first time, iPhone customers will be able to choose between carriers, adding a welcome element of competition that consumer advocates hope will translate into lower prices and - hold your breath - perhaps even better service.
The product will be available through Verizon next month.
The announcement also sets in motion what's expected to be a hardscrabble competition between the two big carriers as they battle each other for subscribers. Estimates for sales of Verizon iPhone this year range from 5 million to 13 million, some coming from what AT&T would have sold. The iPhone is also a significant chunk of business for AT&T, which activated 11.1 million iPhones in the first nine months of 2010.
For its part, AT&T has been preparing for this day. In recent days, it sharply reduced prices on its older iPhones. At the same time, it has introduced a range of new handheld devices to help compensate for any defections. It also allowed iPhone subscribers to trade up to the newest unit
Apple introduced over the summer in return for signing a long-term contract. It also is putting out the word that Verizon's ballyhooed 4G network is not battle-tested and may not be able to adequately handle the expected crush in demand.
That may be true but AT&T has had to battle its own PR problems. During its exclusive run with the iPhone, AT&T put in a decidedly mixed performance. Recurring customer complaints about the network caused Consumer Reports last December to declare AT&T to be the worst phone carrier around.
More to follow.
Source: AP