Friday, May 4, 2012

Why Verizon Doesn't Want You to Buy an iPhone

A pretty hot story is going around, stoked by CNNMoney, that Verizon Wireless sales reps are steering customers away from Apple's iPhones in favor of 4G LTE-enabled Android devices. I absolutely believe this, Verizon's official denials notwithstanding.


Here's the problem: Verizon has spent millions of dollars rolling out its massive LTE network to cover 200 million people so far. You could call it billions, if you include the $5 billion spent on the C Block 700-Mhz spectrum licenses. But according to its first-quarter earnings presentation it's only been able to convert 9.1 percent of its 93 million users to LTE.


There's only one problem. The iPhone isn't a 4G phone. And according to Verizon CFO Fran Shammo, the carrier sold more iPhones over the last quarter (3.2 million) than it did LTE devices (2.9 million). That means more than half of Verizon's smartphone buyers are crowding onto the already busy 3G network, while the 4G network has plenty of space.

 Read it all.

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