Summary
In December of last year we anticipated that Apple’s Tablet will work on Verizon Wireless’ 4G network by the second quarter of 2010. However, it appears that Apple’s iPhone will be used on Verizon’s 3G network starting as early as June. As the Verizon door continues to open further for Apple’s products, one could speculate even more on other future opportunities for the vendor at the wireless carrier.
Analysis
A deal in Apple’s iPhone using Verizon’s EVDO network appears to be done.
Verizon’s initial offering of the Apple handset for its 3G network could be the most devastating blow to AT&T of all. If the vendor happened to leapfrog to 4G, it would have been less of a direct competitive setback to AT&T. Of course, all of the handset vendors are struggling to get cost-effective LTE components at the moment.
In September of last year, we were wondering if AT&T could become a “giant Qwest.” We said at the time that it “seems to be a remote possibility.” In a very quick amount of time, it is becoming clearer that Qwest may be even more proactive in developing its networks than AT&T. U-verse investments appear to have slowed down to a crawl. Announcements of future investments in its wireless networks cannot necessarily be taken seriously.
As we indicated in a recent article, the largest RBOC may be resigned to looking for a government-mandated divestiture to get out of its mess.
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
