CHICAGO — The pressure is on AT&T and Apple to change the industry with iPhone, rather than on competitors to respond to the highly anticipated launch of the wireless device, Verizon’s CEO told reporters Wednesday.
At a press conference following his NXTcomm keynote address, Ivan Seidenberg said Verizon will benefit from rival AT&T’s launch of the Apple iPhone on June 29. He said all the hype building around the new device will add excitement and stimulation to the wireless industry.
“We think we’re the premier wireless carrier,” Seidenberg said. “We’ll be a beneficiary in a different way.”
Buzzblog: Verizon whistling past the iPhone?
Seidenberg brushed off estimations from some analysts that Verizon Wireless could lose 1 million customers on the heels of the iPhone launch.
“We’ve had 27, 28, 32 quarters in a row of growth in the postpaid market,” he said. We have a bunch of devices introduced that we think customers will be interested in. You should buy a ticket to the game and see what happens.”
Seidenberg says Verizon will launch an additional 20 devices between now and year-end. One of those is expected to be the LG Prada, reportedly Verizon’s answer to the iPhone.
“We need to let iPhone hit the market and see what then reaction is,” Seidenberg said. “It doesn’t change our game plan. The burden is on [AT&T and Apple] to see if the market will change.”
On other matters, Seidenberg said Verizon is testing 100Mbps downstream capabilities on its FiOS fiber-to-the-home service using broadband passive optical networking technology. He did not say when Verizon would offer 100Mbps FiOS commercially, but said the higher speed will become the “standard” home broadband rate.
FiOS currently tops out at 50Mbps downstream.
In response to a question on competition with cable providers, Seidenberg said FiOS subscribers on average download more video on demand content than their cable counterparts.
On the FCC’s suggestion that subsidies targeted for the Universal Service Fund could be earmarked for broadband penetration, Seidenberg said Verizon is in favor of it provided it doesn’t stunt industry growth or investment.
“I don’t disagree with the objective,” he said. “But don’t handicap the growth industries.”
Similarly, he said ‘Net neutrality is an agreeable concept so long as it is not “hijacked” by a segment of the industry.
“We agree with ‘Net Neutrality and the FCC’s five principles,” Seidenberg said. “But there’s one small segment of the industry trying to redefine that. We are in favor of the industry’s definition of ‘Net Neutrality.”
