Frater Announces Verizon iPhone

NEW YORK - Verizon Wireless on Tuesday unwrapped its highly anticipated version of the Apple Inc. iPhone, ending AT&T Inc.'s exclusive hold over the blockbuster smartphone and shaking up the smartphone industry.

Frater and CEO of Verizon Wireless Dan Mead (Pi, Penn State Univ.) said the iPhone 4 will be available beginning Feb. 10, with certain Verizon Wireless customers able to preorder Feb. 3. The phone, priced the same as the AT&T version, will not work on the carrier's recently launched superfast network.

Prices for the data plans weren't immediately disclosed. John Stratton, chief operating officer of Verizon Wireless, said Verizon would provide more details on pricing ahead of the Feb. 3 preorder date. He declined to comment on if the lack of a pricing plan, suggesting a new option was in the works.

Verizon Wireless getting the iPhone marks a major shift in the competitive dynamics between the nation's two largest carriers, with AT&T losing its largest advantage. The partnership, which has been in the works for roughly two years, also will serve as a test of Verizon Wireless's network and reputation for reliable service.

Apple, meanwhile, gets access to Verizon Wireless's 93 million customers, essentially doubling its potential customer base. The addition of a second carrier underscores the notion that even a buzz-worthy company such as Apple can't ignore the expanding influence of rival Google Inc.

The carrier has been on the road testing with the iPhone for months, and Frater Mead said he was pleased with where they were. "We are ready for this launch," Mead said.

Verizon Wireless and Apple opted to sell a 3G version because they had to make a decision early on.

A 16 gigabyte Verizon iPhone will sell for $199.99, while a 32 gigabyte model will go for $299.99, each with a two-year customer agreement.

Analysts' estimates for the Verizon Wireless iPhone vary. The carrier could sell 9 million iPhones this year, outstripping the 6 million AT&T is expected to sell, according to Barclays Capital. IHS iSuppli said the Verizon iPhone should boost global iPhone shipments 25% to 61.2 million this year.

A Verizon iPhone raises the pressure on those U.S. carriers that don't have the iPhone, specifically Sprint Nextel Corp. and T-Mobile USA, a unit of Deutsche Telekom AG.

The Verizon Wireless version of the iPhone is essentially the iPhone 4 for AT&T. The only difference is the extra "Personal Hotspot" capabilities allowing customers to use the smartphone to connect up to five Wi-Fi enabled devices. The service will cost an additional $20 a month.

Adapted from a report from the Wall Street Journal Online. Be sure to follow the latest TKE News with the RSS Feed, on Twitter or the official TKE Facebook Fan Page (Tau Kappa Epsilon Fraternity). Submit your news today. 

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