As the iPhone finally expands to its second carrier, Verizon, various differences between the networks have emerged. On the first level, network quality is an important issue for many consumers. Over the years there have been numerous complaints that iPhones using AT&T's service have experienced dropped calls. This is primarily due to AT&T's lack of comprehensive network penetration throughout the United States. Areas such as San Francisco have experienced high levels of dropped calls which has propelled the desire for the iPhone to expand to another network such as Verizon.
While Verizon will probably provide better service than AT&T, there are various structural "issues" that have emerged with Verizon's iPhone. AT&T iPhones run on a standard called Universal Mobile Telecommunications System (UMTS) while Verizon's iPhones will run on Code Division Multiple Access (CDMA). The primary difference between these two standards is the ability to multitask. Verizon customers cannot currently browse the internet or send emails while talking on the phone. AT&T has capitalized on this ability with their iPhones, especially with the release of the 3G iPhone and operating system, and claim that the ability to multitask is a prerequisite to many consumers purchasing iPhones.
Verizon has downplayed the importance of UMTS and multitasking claiming that multitasking isn't an important factor in purchasing an iPhone. Another important difference between UMTS and CDMA is the access to CDMA. CDMA is primarily a service used within the United States. This means that consumers that want to use their phone in Europe or Asia may find problems attaining service. This may force Verizon to create partnerships with foreign telecommunications companies which could be a costly endeavor. Additionally, studies have shown that CDMA consumers energy faster than UMTS which substantially decreases the battery life.
In the end, both companies have different interpretations on what the market is looking for in the iPhone. AT&T argues that while service is important, the functions of the phone outweigh the mediocre service. Verizon on the other hand argue that the service is the primary reasons customers are attracted to the iPhone as opposed to the ability to multitask. If Verizon ends up being right, this could potentially destabilize a major source of income for AT&T. The iPhone is one of the major headlining products for AT&T. An emerging competitor from Verizon could potentially prove to be a threat to AT&T's consumer base.
http://online.wsj.com/article/SB10001424052748704657304575540072333071694.html?mod=WSJ_Tech_LEFTTopNews
As I see it, Verizon will win out on this one. The consumer is looking for a phone first - if they weren't, then users would have bought an iPod Touch or an iPad instead of an iPhone. While I can somewhat see where AT&T is coming from, the people who buy an iPhone want usability and connection in their phone. AT&T is allegedly spending billions of dollars to expand its network, but I don't think it will cover as much area as Verizon's coverage by Verizon's iPhone due date. Also, the attached AppleInsider report states that Verizon's phone will support 2 chips: a GSM AND the CDMA on which AT&T prides itself! The LME chip (also known as the chip that provides 4G coverage) will be produced around 2012 to give Verizon more time to build the 4G network. It's only going to get worse for AT&T when Verizon jumps on the 4G bandwagon with its iPhone.
ReplyDeletehttp://www.appleinsider.com/articles/10/10/11/apples_fifth_gen_iphone_may_support_dual_model_gsm_cdma_but_not_lte.html