Thoughts on the VZ deal

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    Posted: 08 February 2011 11:44 AM

    I have been thinking about the VZ deal and how it affects the carriers in the US. Of course the affect on AT&T is obvious, but the ramifications for Sprint and T-mobile could be significant. Most here, myself included, have always felt that when Apple ended the exclusive arrangement with AT&T that all the other carriers would come on board. It almost seems that T-Mobile is begging Apple to bring the iphone to its network. Upon further review though I am leaning away from this kind of thinking. VZ has been very active with their own advertising for the iphone (good grief, a Super Bowl ad). This is something that Apple/AT&T never engaged in. Because of this I now believe that Apple and VZ have signed a short term agreement to hold Apple to just the 2 carriers in the US for the foreseeable future. I am only thinking a year with a chance to extend. The more I think about it the more I become convinced. It is a win/win for both Apple and VZ. VZ can pilfer customers from AT&T with no threat from the other carriers and Apple can continue its focus internationally. With VZ stepping up to take some of the advertising burden off of Apple, I think this is plausible.
      This is where it gets tricky, because of this I think the remaining carriers are going to suffer. Sprint has been dying for a long time and this may be the magic bullet that puts them out of our misery. Yeah, I dislike Sprint also. T-Mobile is really the only carrier that I actually like.

    Let the battle begin. There is a winner that is predetermined, AAPL shareholders. :drool:

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    Posted: 08 February 2011 12:11 PM #1

    My close family has experience with ATT, VZ and Sprint.  The most notorious of these was Sprint.

    Our mobile operations are with VZ for the benefit of our long distance truck driver.  Why ?  ATT dead spots and/or dropped calls along interstate highways.  A single dropped call could and would cost him a few hundreds dollars, even thousands.  That was a couple years ago. 

    1. Call reliability
    2. Billing fairness  
    3. Customer service (web sites—- I’m looking at you)

    Now we have data.  VZ’s network able to handle the data ?  We will see. 

    Maybe Sprint and T-mobile can’t cut the mustard.  (random thoughts heaped into 1 post)

         
  • Posted: 08 February 2011 01:54 PM #2

    I thought it was mentioned in the VZ announcement that this was not an exclusive agreement with VZ….  I will have to look back..

    mbeauch - 08 February 2011 03:44 PM

    I have been thinking about the VZ deal and how it affects the carriers in the US. Of course the affect on AT&T is obvious, but the ramifications for Sprint and T-mobile could be significant. Most here, myself included, have always felt that when Apple ended the exclusive arrangement with AT&T that all the other carriers would come on board. It almost seems that T-Mobile is begging Apple to bring the iphone to its network. Upon further review though I am leaning away from this kind of thinking. VZ has been very active with their own advertising for the iphone (good grief, a Super Bowl ad). This is something that Apple/AT&T never engaged in. Because of this I now believe that Apple and VZ have signed a short term agreement to hold Apple to just the 2 carriers in the US for the foreseeable future. I am only thinking a year with a chance to extend. The more I think about it the more I become convinced. It is a win/win for both Apple and VZ. VZ can pilfer customers from AT&T with no threat from the other carriers and Apple can continue its focus internationally. With VZ stepping up to take some of the advertising burden off of Apple, I think this is plausible.
      This is where it gets tricky, because of this I think the remaining carriers are going to suffer. Sprint has been dying for a long time and this may be the magic bullet that puts them out of our misery. Yeah, I dislike Sprint also. T-Mobile is really the only carrier that I actually like.

    Let the battle begin. There is a winner that is predetermined, AAPL shareholders. :drool:

         
  • Posted: 08 February 2011 03:37 PM #3

    bilter2000 - 08 February 2011 05:54 PM

    I thought it was mentioned in the VZ announcement that this was not an exclusive agreement with VZ….  I will have to look back..

    Agreed. Not only that, it was made very clear during the Earnings call that Apple was done with all exclusive agreements.

    It is true, as you said, that we are not under a contractual exclusivity now in any country in the world. The last one was the United States. We have moved away from those.-Tim Cook

    http://seekingalpha.com/article/247197-apple-management-discusses-f1q11-results-earnings-call-transcript?part=qanda

         
  • Posted: 08 February 2011 03:55 PM #4

    2 carriers in USA is enough, I want more in china top priority.  Go go china telecom!

         
  • Posted: 08 February 2011 04:04 PM #5

    Steveafb - 08 February 2011 07:55 PM

    2 carriers in USA is enough…,

    I disagree, I want to see the iPhone on every carrier…

    Steveafb - 08 February 2011 07:55 PM

    ...I want more in china top priority.  Go go china telecom!

    ...but I’m willing to wait if it means further opening the China market.

         
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    Posted: 08 February 2011 08:28 PM #6

    The bottom line is that multi carrier or not, Android, Windows 7, Blackberry, and Apple still can not make them fast enough.

    This alone should give us a conservative p/e of 30.  Verizon is huge ( bigger then I had imagined ) and I think T Mobile and Sprint will get it within 12 months.

    It boils down to production.  More iPhone in more hands in the US and we will see more iPads and Mac computers sold in short order.

         
  • Posted: 08 February 2011 09:24 PM #7

    omacvi - 09 February 2011 12:28 AM

    The bottom line is that multi carrier or not, Android, Windows 7, Blackberry, and Apple still can not make them fast enough.

    Agreed.

    Verizon is huge…

    Agreed.

    ...and I think T Mobile and Sprint will get it within 12 months.

    I’ll vacillate and say T Mobile or Sprint will get it within 12 months and they’ll all get it eventually.

    It boils down to production.

    Agreed.

    More iPhone in more hands in the US and we will see more iPads and Mac computers sold in short order.

    Agreed.

         
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    Posted: 08 February 2011 11:15 PM #8

    Fal, turning into a yes man I see. LOL

    I don’t know where you stand on the carrier issue though. :-D OK, so let me get this straight. I put it out there that no other carrier would enter the game for a year and it is dismissed, then it is expected. Nice, makes sense to me. rolleyes

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  • Posted: 08 February 2011 11:40 PM #9

    mbeauch - 09 February 2011 03:15 AM

    Fal, turning into a yes man I see. LOL

    Yes…oh! Wait!

    OK, so let me get this straight. I put it out there that no other carrier would enter the game for a year and it is dismissed, then it is expected. Nice, makes sense to me. rolleyes

    I think what I said was that one of the carriers would follow Verizon in the next 12 months and that they all would carry the iPhone eventually. But if Apple had to delay bringing the iPhone to another U.S. carrier in order to expand the China market, then so be it.

    I fear I’ve lost the thread of this thread. Please repeat your position so I may better understand it.

         
  • Posted: 09 February 2011 12:20 AM #10

    Steveafb - 08 February 2011 07:55 PM

    [...] I want more in china top priority.  [...]

    Tim Cook agrees with you.  (see 1Q concall)

         
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    Posted: 09 February 2011 12:40 AM #11

    Patience Unique, Apple is growing at a great rate, why demand more? They have to beat this years numbers next year. LOL

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    Posted: 09 February 2011 10:37 AM #12

    oh boy, this could be great for iPhone users.  And the more you travel, the more important it is. 

    Apple granted patent where carriers bid to provide service to iPhones

    AppleInsider

    Using Apple’s proposed system, a user could specify carrier preferences for different rates, locations and times that would then be dynamically selected by the iPhone.

         
  • Posted: 09 February 2011 11:51 AM #13

    mbeauch - 09 February 2011 04:40 AM

    Patience Unique, Apple is growing at a great rate, why demand more? They have to beat this years numbers next year. LOL

     


    Said the old bull to the young bull, ” No we’ll walk down and…........”

         
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    Posted: 09 February 2011 01:35 PM #14

    On line veriphone delivery pushed back to February 18…....big demand!

    http://www.9to5mac.com/
    :drool:

    Edit:  never mind..comments to the article point out the date was always the 18th. That is why folks will line up at the stores….

    [ Edited: 09 February 2011 01:39 PM by Red Shirted Ensign ]

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    Posted: 09 February 2011 01:49 PM #15

    Red shirted ensign - 09 February 2011 05:35 PM

    ..comments to the article point out the date was always the 18th…

    Although that may have been true this morning, the original intent was different. I’d say the demand from existing Verizon customers has exceeded expectations. New Verizon customers will have to wait a while longer.

    Apple’s official announcement on Feb. 2nd

    Or reserve an iPhone 4 on February 9 for pickup at your favorite Apple Retail Store starting February 10 and get Personal Setup.