Report: Apple, Verizon in iPhone talks

Verizon version of iPhone could launch when AT&T exclusivity deal ends after next year

Apple is in discussions with Verizon to create a new version of the iPhone that would run on Verizon's cellular network, according to a report in USA Today.

Apple iPhoneys: The 4G edition

The report, which is based on anonymous sources whom USA Today claims are "familiar with the situation," says the two sides are working on an agreement to launch the new version of the iPhone sometime after Apple's exclusivity agreement with AT&T for the device expires after 2010. The two sides have been hammering out negotiations for the past few months, the report says, and are continuing them despite Apple CEO Steve Jobs' well-publicized medical leave.

A Verizon version of the iPhone would have to operate on a different wireless standard than the current version of the iPhone, which is designed to run on AT&T's GSM-based HSPA network. Verizon's 3G services employ the CDMA-based EV-DO Rev. A standard, although the company is planning to commercially launch its 4G network based on the GSM Long Term Evolution (LTE) standard sometime next year.

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Apple is in discussions with Verizon to create a new version of the iPhone that would run on Verizon's cellular network, according to a report in USA Today.

Apple iPhoneys: The 4G edition

The report, which is based on anonymous sources whom USA Today claims are "familiar with the situation," says the two sides are working on an agreement to launch the new version of the iPhone sometime after Apple's exclusivity agreement with AT&T for the device expires after 2010. The two sides have been hammering out negotiations for the past few months, the report says, and are continuing them despite Apple CEO Steve Jobs' well-publicized medical leave.

A Verizon version of the iPhone would have to operate on a different wireless standard than the current version of the iPhone, which is designed to run on AT&T's GSM-based HSPA network. Verizon's 3G services employ the CDMA-based EV-DO Rev. A standard, although the company is planning to commercially launch its 4G network based on the GSM Long Term Evolution (LTE) standard sometime next year.

The iPhone had until very recently helped AT&T maintain a slight lead over Verizon in terms of total wireless subscribers, and the carrier recently reported that it had activated 1.6 million of the devices in the first quarter of 2009. However, in the wake of Verizon's Alltel acquisition, Verizon has leapfrogged AT&T with an estimated 86.6 million wireless subscribers. In its most recent earnings report, AT&T estimated that it had 78.2 million wireless subscribers.

Additionally, AT&T's iPhone edge over Verizon could vanish if iPhone users are free to choose between the two networks. Several studies by both consumer groups and academics of U.S. carriers have consistently given Verizon the highest marks for wireless call quality and among the highest marks for customer satisfaction.

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