Seth Shapiro's Business Innovation Blog

Posted by: Seth Shapiro

Paul Miller has an interesting take here on Apple’s original talks with Verizon… to our point on January 14 that “Apple gets a business model with all of the upside of an MVNO and none of the down.”

“While Cingular… couldn’t seem prouder of its iPhone exclusivity, apparently Apple’s first choice was Verizon, but the two companies couldn’t agree on a deal… “We said no.” Said Jim Gerace, a VZW VP. “We have nothing bad to say about the Apple iPhone. We just couldn’t reach a deal that was mutually beneficial.” Talks began as far back as two years ago, but … Apple wanted a percentage of monthly service fees, control over distribution that would limit iPhone sales to Apple and Verizon stores… “They would have been stepping in between us and our customers to the point where we would have almost had to take a back seat … on hardware and service support,” say Gerace. Cingular doesn’t quite see it that way… Says … a Cingular spokesman, “I don’t want to leave the impression that these (iPhone) customers are not ours. They are.”

Um, OK. See you in June (or thereabouts). And send my 8800 already.

Posted in Blog by Seth Shapiro.

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