Verizon to shorten exclusivity deals on handsets

Verizon to shorten exclusivity deals on handsets
In a written letter to lawmakers, Verizon Wireless today agreed to shorten the time that it holds exclusivity deals on certain handsets. Big Red wrote that it will change the agreements the carrier has with manufacturers so that carriers with less than 500,000 customers can offer these "locked-up" models after 6 months.

Verizon and other carriers have been under pressure from lawmakers to end exclusivity deals like the one that the company has with RIM to sell the BlackBerry Storm in the U.S. and the arrangement between Apple and AT&T for Stateside sales of the iPhone.

source: WSJ Tech Alert (via email)

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16 Comments

1. BlackberryUser

Posts: 609; Member since: Jun 26, 2009

Which carriers have less then 500k customers? I don't think this meets the intent of the change.

2. htsee

Posts: 86; Member since: Mar 15, 2009

i would most definitely agree with your statement... it doesnt truly benefit market competition. sure, phones like the storm and iphone would be on more carriers, but competition amongst carriers would improve. This would also mean that handset manufacturers would have to do more to stand out in a crowd...

3. BBuser

Posts: 5; Member since: Jun 29, 2009

Good Point

12. hmcougar09

Posts: 137; Member since: Jan 25, 2009

Um, the minor league phone companies, that are trying to bring their business up to par with the major ones! Duh.

4. Jyakotu

Posts: 867; Member since: Dec 12, 2008

I don't really understand what's wrong with exclusivity deals with cell phones... Seriously, exclusivity actually helps IMO because the carriers will often try to get phones that stand out.

5. ossirus09

Posts: 3; Member since: Feb 04, 2009

ahh yes the iphone... let's apply a little industrial knowledge to this debate shall we? Exclusivity just isn't the same any more is it? it's so unfair for every one not to have such a revolutionary device. to put in perspective the rumors of Verizon getting the iphone. The real question is feasablity vs profitablity. if the LTE technology once thorughly tested and successfully rolled out, is consistenly capable of Data speeds of 5-12 Mbps downlink and 2-5 Mbps would the iphone even be capable of handling that kind of connection. think super sonic jet equipped with a rocket engine. I honestly tell my customers the decision also lies with Apple. once again their brand of exclusivity I do believe, does not currently mesh well with Verizon wireless or it's other partners business model. To gamble that that particular product in it's current or subsequent forms would be feasable to launch or profitable and accessable to the ENTIRE customer base, no matter how "popular" the marketing dept makes it. is one that any other company is willing to make.---- just my opinion.

7. jherz6

Posts: 217; Member since: May 23, 2008

Ahh yes the iphone. Your right it is up to Apple if they want to open a whole new market and increase there market share they will have to manufacture a device that will be able to handle the speed of lte. Otherwise they will be left in the dust, people with there phones like there pc's want speed and accuracy. So if Apple doesnt move into the 21st century the will lose more than they'll gain. As far exclusivity Rim has already put into works a version of the storm 2 for AT&T and since RIM seems to be Apples main competion when it comes to phones the answer to them making a cdma version for VZW and others seems clear.

9. Kiltlifter

Posts: 742; Member since: Dec 11, 2008

Ossirus... HOW DARE YOU WRITE AN INTELLIMAGENT COMMENT ON PA!!!! FOR SHAME!!! ..... seriously though... i don't care about exclusivity writes... why don't we just make everything available to everyone... every company to should reveal all of their patents, their trade secrets and their technology and just let the market run wild... that would be fair right? let everyone have everything... and better yet... let's make everything completely FREE!!!! in fact, let's just pay people to use our product and we spent countless hours and billions upon billions to innovate and create. But hey... we are just being fair... free everything for everyone.. that's how business should be run, everyone wins right? (for the average PA reader/blogger out there... i am being blatantly sarcastic... just to let you know)

10. WKlingbeil

Posts: 215; Member since: Dec 26, 2008

Has nobody thought about the possibility of Apple not just throwing LTE capabilities onto the iPhone in its current state, and actually making an LTE phone? Maybe it wouldn't be an iPhone, maybe it would be a uPhone, or even better if it's for Verizon, a vPhone. This is mainly at #5, because it seems to me that he's a store rep who's figured out the anecdote to all those iPhone users and he wants to share it with the world. No, the iPhone, vPhone, whatever isn't for everybody (it certainly isn't for me), however, to say that it couldn't handle LTE is ludicrous, because it's a GSM phone. Apple, RIM, Samsung, everyone will make their own LTE phones, and those WILL be able to handle LTE.

11. lolipopjones

Posts: 51; Member since: Jun 21, 2009

WHats the point of Apple making an LTE device for Verizon? You do realize that Apple will have to make an LTE/CDMA device for Verizon since Big Red does not intend to use LTE for voice....... LTE for Verizon Wireless is their 4G data network which means its going to serve the same function that WIMAX does on Sprint. AT&T plans to use LTE for Voice and Data (which is what it was intended for) while upgrading 3G since most users will not be LTE based for awhile. Now the question is does Apple want to make an LTE phone which most of the world is on or do they want to make an LTE/CDMA phone which only VZW is on..... Something to think about they opted for China Unicom over China Telecom...

13. hmcougar09

Posts: 137; Member since: Jan 25, 2009

The Storm 2 was originally for VZW FTW!

15. WKlingbeil

Posts: 215; Member since: Dec 26, 2008

Where do you get your information from? If you look at the road map for the LTE transition for VZW, as of like 2020 or somewhere like that, they intend on getting rid of CDMA. It would be so extremely expensive to have devices packed with 2 tower technologies (much as the global phones of present day) that VZW would be idiotic to make that a permanent set up. At first, yes, that's the plan, because that will make the transition smoother, seeing as they don't have the benefit of GSM-based 3G networks like AT&T. However, that's not the permanent plan. I'm not saying that Apple IS making an iPhone for VZW, and I hope they don't. However, knowing Apple, they want to squeeze every penny they can out of America, so they'll spread themselves as wide as they can.

16. PapaJay224

Posts: 866; Member since: Feb 08, 2009

Whats your source? Why would At&t use LTE for voice and data but NOT Verizon? Considering LTE is our launch, its Verizons baby, Its what VZ is Investing Billions in? Why would we say..."ok at&t, we'll just use LTE for DATA, you can use it for both voice and data" ...The whole intention for LTE is to universalize (new word) and link the bridge between Vodafone and Vzw making us a global "Unit". wiMax for Sprint is different you cant compare the largest most successfull Wireless company's buisness plan and FUTURE developement tword a failing falling bankrupt sprint model. You can garentee Vzw will be utilizing EVERY aspect of LTE voice, data, streaming, media...You name it, our names on it...do some research.

6. DontHateOnS60

Posts: 872; Member since: Apr 20, 2009

This all boils down to two very simple things. 1) These politicians are annoyed because they can't get an iPhone on Verizon. 2) Because they're part of the government and these corrupt politicians who want nothing more than government control over everything anybody says or does, think they can just come in, say something about unfair competition to scare the big carriers into giving up something just to satisfy a few jackasses who shouldn't even be part of our government in the first place. And you mean to tell me all of a sudden, some liberals like John Kerry care about small business, when all along they've done nothing to help ease the burden on them? This is brilliant. I hope you all realize that because of the iPhone AT&T exclusivity, we now have phones like the Storm, Pre, and the Memoir. And as far as these small carriers go, those who are GSM have plenty of phones to go after that AT&T or T-Mobile doesn't even have yet that would attract a lot of attention.

8. jherz6

Posts: 217; Member since: May 23, 2008

Well if the politicians get there way on excluisivity it will not only benifit them, it will benifit people like me who would have liked to try or buy the iphone but were unwilling to change there sevice to AT&T. Not only that iphone customers being able to get support from there carrier instead of Apple is wrong and ofcourse not being able to insur there device so if something happens which the warruanty doesnt cover, you would have to buy a new device at full retail, and the call Verizon money hungry.

14. markemark

Posts: 21; Member since: Jun 19, 2009

Great, so my grandma can now replace her Jitterbug with a Storm.

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