So I mentioned in a prior post that Verizon will be getting the iPhone sometime next year.  Well, with the WWDC and the release of the iPhone 3GS earlier this week, it looks like my theories are true.  Here is what came out of it and why:

1. The “S” in the iPhone 3GS is for the support for the faster 7.2 Mbps 3G standard or in Apple’s case… “speed.”  The problem is that AT&T’s network isn’t quite ready for the 7.2Mbps (see prior post).  While some cities are already experiencing this, the majority of the US won’t see it until 2010 or even 2011 in some locations.  Again, with Verizon’s LTE due out next year, these speeds will exceed 7.2Mbps which would not only make for a better “network gaming” platform, but for better download speeds and tethering.
2. Tethering… AT&T still isn’t ready for this.  It should be something as simple as plug and play like BlackBerrys have, but I think AT&T is pondering the idea of charging an additional $70 for unlimited data tethering on top of the already exisiting phone and data plan of roughly $70.  And when I say unlimited, it usually means a cap of 5GB/month.  Wouldn’t it be easier to just get a wireless broadband card instead? [BGR via Gizmodo]
3. MMS is another built in service with most cell phones now, sending pictures, videos, songs or even sexting if you are adventurous… but again, this service is delayed with AT&T.  As Gizmodo puts it “MMS [has] been around for literally years” but for the 3GS, not until later this summer.  Rumor has it that:
   

   “According to BGR, the reason AT&T isn’t going to be ready with MMS at launch is not because of any new pricing plan—it’s because of Opt-Out MMS codes. Apparently, because people were using MMS with the iPhone 3.0 betas, AT&T put an opt-out on all iPhone accounts. So, theoretically, if AT&T manually (yes…manually) removes all of these opt-outs, MMS would work just fine.”

   This should have been resolved before the 3GS release and if I were Apple, I wouldn’t be too happy about not giving our biggest customers (the United States) the best and fastest service available.

4. And the cost?  AT&T is desparate for new customers.  Verizon still has the biggest subscriber pool after absorbing Alltel.  So of course AT&T would have lower prices for the new 3GS for new customers.  Prices of $99 for 8GB version, $199 for 16GB version, $299 for 32GB version would entice anyone… even me (except for the fact I have will power and will wait until next year).  But what about your faithful customers who have stuck by you for so long?  You know, those early adopters of the iPhone 3G?  Well, if you fall into this category, you are screwed!  From Apple’s website:
   

   “For non-qualified customers, including existing AT&T customers who want to upgrade from another phone or replace an iPhone 3G, the price with a new two-year agreement is $499 (8GB), $599 (16GB), or $699 (32GB).”

   … awesome!

Don’t forget, these are just my opinions and theories just like Tom.  Take a read of what he has to say about this too!

[Flickr]

For those of you who haven’t noticed the slow departure of the Verizon representative in Alltell commercials, Verizon’s deal to buy Alltel started back in June of last year, and was finalized back in January. I’ve actually made it out to be a mini-game when I see the commercials… Will we see the Verizon guy? Will he talk?

Well soon enough we may not see anymore Alltel commercials, and there goes my drinking ga.. I mean mini-game! As of earlier today, Verizon has announced it will adopt Alltel’s “My Circle” as “Friends and Family” in Verizon-speak.

This is great news for the legacy Alltel customers, and as the news was released: all current and future Verizon customers. I’m sure most of the Alltel users were afraid that THE drawing point Alltel had on the market would be digested by the tasty Alltel merger meal. This actually is a great move as now both T-Mobile and Verizon both have a Favorite-based feature (MyFaves vs. My Circle).

There is no word yet as to when the My Circle option will be available, but at least its out there. Even though the Storm hasn’t hit the market as well as they hoped (though those damn commercials aren’t stopping anytime soon), this move can only help Verizon continue it’s push to be the largest (non-3G speed) 3G network.

Thanks Engadget

Thanks to Gizmodo for this story. I love the picture they have on this article. As the article states, Verizon Wireless will absorb all of Alltel’s 13 million customers, putting the wireless giant at a total of 80 million customers. Verizon has spent roughly $6 billion USD but because of this aquisition, Verizon has spent a total of roughly $28 billion, $22 billion of that residing in Alltel’s debt.

Now, how does the 5th leading wireless phone provider get $22 billion in debt? And secondly, why would Verizon foot the bill for Alltel’s debt? Besides being able to call themselves the #1 US cellular carrier, would Verizon really make that much of a dent in AT&T’s market? Especially when the 2nd generation iPhone is due out very soon and AT&T is already gearing up for the massive invasion.

So what does this mean for the consumer? Because Verizon is all about reliable service and best coverage, they want to maintain this status. Alltel has coverage in many rural areas in which Verizon and AT&T pay Alltel to use their transmission towers. With this merger, Verizon will be in full control of these phone towers, leaving AT&T with less coverage in these area, thus expanding the range of Verizon’s network. So good news for Verizon customers (and Alltel customers), your phone will now work in more areas so we can “hear you now.”

Official Verizon News Release