The Verizon iPhone: Coming Soon

If you aren't tired of all the Verizon iPhone buzz yet, you'll love the latest hints coming from the rumor mill. Citing an in-the-know anonymous source, Bloomberg BusinessWeek reports that the iPhone will most likely come to Verizon before Valentine's Day -- a present for iPhone holdouts (and current owners dissatisfied with AT&T), including many business users.

The iPhone's seemingly inevitable arrival on a second U.S. carrier should come with the usual Apple press conference and fanfare following the official announcement of a deal with Verizon. Anybody hoping the news would come at this month's Consumer Electronics Show will have to wait a little longer. (Can't get enough Apple coverage? Check out our recent look at Apple's plans for 2011 and earlier coverage of the Verizon iPhone rumors.)

So now that we know (well, we're pretty sure) the Verizon iPhone is almost here, what exactly can we expect?

Is There a Catch?

Don't expect a price war or any major discounts once the Verizon iPhone arrives. The company isn't known for slashing prices on either phones or plans -- Verizon sells based on reliability and service area. There have been reports of a possible $70 unlimited data plan, but texting would still be extra. That offer has already gone out to some select subscribers with existing smartphones. Whether or not it becomes an option with the iPhone remains to be seen.

It would take another carrier or two (like Sprint and T-Mobile) picking up the iPhone to start any sort of meaningful price competition, and so far, we haven't seen any indication that those service providers will get in on the iPhone action. Another possibility is that AT&T might try to undercut Verizon's pricing to retain cost-conscious consumers. That could provide a little intrigue to the iPhone pricing story. Bottom line, the iPhone isn't going to be a bargain basement device.

The AT&T Factor

Everybody is picking AT&T to be the real loser in this situation. Verizon gets a flagship smartphone. Apple improves its position against the rising popularity of Android devices. Consumers get more choice. Dissatisfied AT&T customers can jump ship. Adding a little fuel to the fire, Consumer Reports published its annual wireless carrier customer satisfaction survey in December. Guess who came in last? Yep, it was AT&T. Much of that is due to overworked cell towers and 3G data coverage issues. Verizon, usually the leader, finished second in overall satisfaction this year.

Still, it can be costly and inconvenient to switch carriers in the middle of a contract. All those people who signed new two-year contracts to get the iPhone 4 could be looking at hundreds of dollars in early termination fees. That alone may deter a massive tidal wave of AT&T defectors. Most of the new iPhones will end up in the hands of current Verizon customers looking to upgrade to the Apple smartphone. Shifting some of the data burden onto Verizon may even help out existing AT&T iPhone users by freeing up the network in densely populated areas like San Francisco. Verizon has poured a lot of money and resources into its network, so it should be able to comfortably handle the extra traffic that the iPhone will bring.

Down to Business

For business users, a choice of iPhone carriers is a good thing. If you are having a lot of trouble with AT&T and either have a contract coming up for renewal or don't mind paying up for termination fees, then get ready to jump to Verizon. If AT&T is tolerable and you like your iPhone 4, you may want to hold out for a bit. Keep an eye out for the next generation iPhone that is expected to arrive later this year. Who knows -- maybe we'll be discussing T-Mobile iPhone rumors before long. Let the guessing game continue!