Verizon ad describes negotiations with Apple?

The thing about the finest of soap operas is that they must create conflict in order to inspire truly dramatic love.

This is why I was rendered temporarily cynical by a Verizon print ad in a recent edition of Sports Illustrated. The ad was for the Droid. The words were directed at the sensitive regions of the iPhone. But the sentiment seemed to refer to a slightly larger picture.

In case you have not seen this particular work of art, it is headlined "This is a world of 'Nope', Nuh-Uh' and 'Sorry, Charlie.'" The first line gives a clue that perhaps this is not just another anti-iPhone ad. "A world of smiling denial," it begins.

But the next line offers a shudder with every consonant: "Petty tyrannies have made their way into our cell phones."

Smiling denials. Petty tyrannies. Are they talking about a competing cell phone or perhaps a certain individual at the competing company?

(Credit: Chris Matyszczyk)

This is not the rather charming exile of the iPhone to the Island of Misfit Toys. This isn't even the rather teenage assertion of the iPhone's alleged "semi-functional, giggling-brat-vanity".

This print ad strains to mask its truly adult feelings and fails in quite a spectacularly positive way with the phrase: "these arrogant little devices."

Alrighty, now. The use of the word "arrogant" makes this a deeply personal work that might have been inspired, well, by whom? By someone who might have been personally involved in Verizon's negotiations to secure Apple's iPhone, perhaps?

The hearty phraseology of the Droid campaign is admirable, in the way that the Ultimate Fighting Championship can, I am told, sometimes be admirable.

However, one wonders whether Verizon's confidence in its wireless coverage is making the company feel far more assured in its ability to soon offer the iPhone as well as BlackBerry and Droid products.

Is Verizon suggesting that Apple needs Verizon's coverage just as much as Verizon needs the iPhone's cachet? Is it suggesting that the alleged smiling denials, arrogance, and petty tyrannies cannot prevent a slightly altered world order?

The upliftingly personal nature of this ad might just portend a new, big love between Apple and Verizon in just a couple of episodes. A 4G Verizon iPhone? There won't be a dry eye in the house.

[shane--2008]

lets face some facts... Verizon is getting knocked around for not having a phone worth a damn. Apple is selling tons of phones.

Apples doesn't need Verizon. Verizon needs Apple.

[john55440]

Verizon never needed Apple.

With Droid, it needs Apple even less.

Apple needs Verizon. In the US, iPhone is chained to a clearly inferior network.

[Random_Walk]

Last quarter, AT&T almost had as many new subscribers as Verizon did... something that hasn't happened in years. Trust me, Verizon needs Apple very badly. Their recent doubling of termination fees was engineered not so much to insure subsidizing phones, but to try and stop the bleeding of people busting their contracts and jumping ship to AT&T (iPhone), Sprint (Palm Pre), T-Mobile (various) and etc.

You know? For a carrier that goes out of its way to lock their users down (recently doubled termination fees, phones rigged to 'accidentally' hit the web as often as possible, data billing rounded up to the nearest megabyte, forced links to their in-house ringtone and app stores, etc)? Verizon sure does talk a good game about trying to eliminate user restrictions, doesn't it? ;)

[ddhboy]

Verizon doesn't need apple because Verizon doesn't have apple now and they're doing just fine. If anyone needs apple its AT&T, and if Verizon needs anybody its Google and Android. T-Mobile is on the same boat and Sprint is riding the WebOS train. Its best for pretty much every cell phone maker and network that doesn't have the iPhone to go up to the rooftops and start screaming their own iCan't commercials. This is also best for the consumer, because once Android and WebOS get up off of their bums, the iPhone will have to actually make innovations that matter when they go from 3.0 to 4.0, and the other OSes like Windows Mobile and Symbian will have to catch up in order to stay relevant.

[Random_Walk]

"Verizon doesn't need apple because Verizon doesn't have apple now and they're doing just fine."

...so if they're doing just fine, why did they recently and suddenly double their early termination fees?

[Random_Walk]

"This is also best for the consumer, because once Android and WebOS get up off of their bums, the iPhone will have to actually make innovations that matter when they go from 3.0 to 4.0, and the other OSes like Windows Mobile and Symbian will have to catch up in order to stay relevant."

This part I can agree with, easily. :)

[Vegaman_Dan]

@Random_Walk:

For a person who is so heavily pushing and promoting the iPhone, why is it that you don't have one yourself? I'd be curious to know why this is.

I think you kid yourself if you think that people are choosing AT&T solely because they love the service. Take away the iPhone customers and NOW what sort of numbers does AT&T have? With their well earned reputation of dropped calls, poor coverage, and even worse customer service, what do you think will happen if/when the iPhone appears on another carrier? Do you honestly believe people will stick with AT&T then because they are such a great CSP that gives them a great big warm fuzzy feeling in their hearts?

No, I suspect there will be a mass exodus. I strongly suspect Verizon won't get the iPhone and that is why they are pushing the Droid so heavily. That way if some other carrier picks up the iPhone like SPrint for example, then Verizon will be in a good position to pick up quite a few switchers who are just plan fed up with AT&T and the iPhone altogether.

That's the way I see it.

[mbenedict]

If you look at Verizon vs. AT&T financial performance from 2007 until today, they're pretty much equal and closely tracking S&P 500. In fact Verizon's stock is slightly ahead of AT&T in this period.

So clearly Verizon does NOT need Apple nor the iPhone. AT&T desperately needed the iPhone to just stay on terms with Verizon, at a severe strain to its network and more damage to its reputation.

AT&T's return on investment (ROI) with the iPhone is negligible once you take subsidy and cost to upgrade its network and customer service into account. Now that Verizon is poised to take off again in 2010 with a slew of new phones and a new LTE network, how will AT&T keep up?

It's a long war, and AT&T spent all its bullets already with the iPhone just to get a stalemate in one battle.

[Random_Walk]

"For a person who is so heavily pushing and promoting the iPhone, why is it that you don't have one yourself? I'd be curious to know why this is. "

Actually, I like the iPhone, Android, and Blackberry - I'd like to have either Android or iPhone, but I don't much feel like getting my wallet raped by a cell phone carrier to do it. Otherwise, I just do this for fun.

==

"AT&T's return on investment (ROI) with the iPhone is negligible once you take subsidy and cost to upgrade its network and customer service into account."

...so that massive expansion they've experienced in customer base over the past two years means nothing then? Do tell. The massive upgrade in network capacity will serve them well, since they are pretty much on the edge of smartphone usage (the majority of data users are still iPhone users... if Verizon had the iPhone, they'd be drowning right now).

"Now that Verizon is poised to take off again in 2010 with a slew of new phones and a new LTE network, how will AT&T keep up?"

...by installing LTE themselves. Or did you think that Verizon was the only carrier with that ability?

[3tire]

mbenedict, jargon doesn't make your point any more valid. It's kind of ridiculous to say the iphone was the justification to expand their network therfore the roi wasn't there for the iphone..
That's like saying the roi for Ford going to rubber tires was tied to a specific tire. I'm not part of AT&T's board, but I'm thinking that generating more money from data services in general was a key factor in their decision.

[Seaspray0]

Verizon may have doubled their early termination fees, but how come nodoby has mentioned that all att phones now require you to get a data plan on their phones? Some phones (i.e. iphone) it's mandatory. Others, you can drop the data play but must pay $50 more for your phone. Even worse, when I went to the att website to upgrade my phone, I was only offered 3 choices.... pos, pos, iphone. The 4th att store visited had a good selection which is the ONLY reason (besides the 3000 + rolled over minutes), I am still with att. My needs were simple. I want a cell phone that makes calls. I want it to not drop calls. That's it. It took some work on my part to prod information out of the sales people on only that.

I'm looking at this whole thing from a different perspective than alot of you since I am a customer and was there recently and saw first hand what att is doing at their stores. From what I see, att has pushed iphone sales to the detriment of all other phones they carry (both website and sales people). ATT needed iphone and is still sucking up to apple because of it. Verizon does not, will not, and their commercials back that up. The phone war has begun and I don't care who wins.

[bonesbautista]

Not a VZW hater, own a Storm. Not an Apple hater, own an iPhone too.

The "ad" however, screams "Yikes, that guy needs help." Seriously.

[baconstang]

Really!
When you advertise the negatives instead of your strong points, it's pretty obvious who's grasping.

[cowlquape]

you mean like how apple advertises the negatives of windows?

[notagrasshopper]

Boom.... roasted! NICE comeback "cowlquape"

[Vegaman_Dan]

"you mean like how apple advertises the negatives of windows? "

No, because then there would be a double standard in play and... and...

Oh. Yeah. Um-

[faceless128]

your post is almost as puzzling as the author of this article thinking that someone in the marketing team is also sitting in on negotiations with apple.

[Gold_Storm_Mac]

Is the word "doesn't" really not in their dictionary app. That wouldn't be helpful.

[Vegaman_Dan]

"Grammar" might be a word you could look up in the application, I do believe.

[solitare_pax]

Hm - if it does not have the word "doesn't" in its dictionary app, doesn't than make it an abridged dictionary, that possibly misses other things that annoy Verizon as well?

They may not have Apple's iPhone - but they sure seem to have a lot of sour grapes.

And what does the Droid do anyways? They seem to forget ti tell us that interesting part of the tale...

[Billbro88888]

It can make a call in most of the US, unlike the no signal the iPhone frequently has.

[bsharkey]

everything.... get it? guess not

[Billbro88888]

The iPhone is cool but with the weak network it's on it is frequently a paper weight.

[bsharkey]

which is also the case by default when its battery is drained (happens even faster while searching for a signal or communicating with far-off towers)

[myles taylor]

Actually, only about half of what I do on the iPhone is on a network. I use it as an iPod (and never carry around my iPod anymore) and a lot of other things. Also, while the 3G network might not be as good as Verizon's, give me a break....it's still not that awful.

[baconstang]

And soon will be the LTE network which will blow away VZW's 3G.

haha except verizon is already preparing to roll out it's 4G/LTE by the end of 2010 across most of the usa

[szettervall]

"The iPhone is cool but with the weak network it's on it is frequently a paper weight."
I don't think its so much a "weak" network as it is a "busy" network. If the Verizon network had the same traffic demands it would have had the same issues. btw, I haven't suffered from any of the reported issues with the AT&T network, it works just fine for me, 3G virtually everywhere I go.

"which is also the case by default when its battery is drained"
Very common on a smart phone. I charge my phone once a day, works fine for me.

"haha except verizon is already preparing to roll out it's 4G/LTE by the end of 2010 across most of the usa"
The AT&T network is 4G ready. The Verizon network will need to be forklift replaced to accommodate 4G.

90% of my data use is off of Wi-Fi. The 10% I use over the AT&T network is weather, traffic, maps, and email
activity, all of which works just fine over the AT&T 3G Network. btw, I get speedtests and downloads consistently over 1Mb/sec, what more do you need?

[CDubber]

***? Verizon has been a "petty tyranny" since birth. Even more than AT&T. After all, isn't it Verizion's "petty tyranny" that compelled them to reject the iPhone in the first place? Why, yes it was.

The hypocrisy here is astounding.

[DeeBAG]

They aren't claiming AT&T is tyrannous, they are saying that Apple is. This is true. You claim that VZW is tyrannous. Also true. Both companies blow.

Well I'd have to start by asking what the heck you're smoking if you think this is some sort of subliminal jab at Apple. That aside, Verizon keeps poking away at AT&T's 3G network and Apple keeps selling iPhones. Ads aren't going to change that. Ads are what people skim by with their DVRs. Folks out here in the real world continue to wonder why the best phone and the best 3G network can't get together for us.

[karpenterskids]

So true.

Eventually, companies will wake up and realize that (unless they're a completely unheard-of brand before), spending the millions of dollars on advertisements does NOT bring in that same amount of cash.

Consumers such as me have seen so many ads in our lifetime, we're smart enough to not go with something just because there's a good ad for it.

But in the meantime...this dumb system of ad-sponsorship will continue as normal.

[GadgetDon]

If this "dumb system of ad-sponsorship" goes away - expect to pay a lot more for TV, magazines, and the websites that survive.

[nbvail]

If all iphones were on verizon would verizon then be as bad as AT&T? Seems none of the networks can handle real traffic, especially traffic from us iPhone power users.

[jimmyhoops]

Very true! Statistically, iPhone users gobble up 10x more data usage than the next competitor. Verizon may have a strong network for now. But one has to wonder if they would be crippled if they started selling iPhones tomorrow. As a result, AT&T has had to do some major infrastructure improvements to accommodate iPhone users. Something tells me that Verizon would be no different if the shoe were on the other foot. But then again, Verizon contemplated a pair of shiny new 'Apples' and rejected them. Wonder if the exec that made that call still has a job?

I'll be an iPhone user until something substantially better comes along. For now, I don't see the Droid as something 'substantially better'. It's an interesting fight and the real winner will be the consumer as both products get better over time. But short of Verizon offering me a free Droid with 2 years free service, I don't see myself switching networks based on advertising. My iPhone has yet to fail me where ever I go. And quite frankly, I'll never travel to most of Verizon's 'expanded coverage'. Perhaps I would feel differently if I lived in BFE, but I don't...and thus I don't care about Verizon's coverage.

Offer me a better device and I'd think about it. Til then, buzz off...can you feel me now!

[KHannemann]

I agree with jimmyhoops. If Verizon had anything like the iPhone, it's so-called network advantage would have the same issues some users (not me, BTW) have with AT&T.

This ad campaign is going to jump up and bite Verizon in the ass.

I'm fine with competition and if the Droid(s) are good or become good, all the better for everyone. But at this point, iPhone rules.

[mrcjacobs]

I own an iPhone, Storm and as of Monday a Motorola Droid. Verizon doesn't need Apple and Apple doesn't need Verizon. Would Verizon like to have the iPhone? No doubt. Will they get the iPhone? No doubt. This ad screams nothing to me other than Verizon letting it be known that they intend to shakeup the status quo. The iPhone landed on AT&T because they were the only ones willing to allow Apple to dictate the terms of carrying it. At some point the 2 sides will sit down and hammer out an agreement that benifits each equally. Until then I'm enjoying the Droid commercials. And the fact remains that the ads have been extremely effective and consumers are starting to look at the bigger picture; http://www.pcworld.com/article/182185/atandts_verizon_ad_battle_whos_being_hurt_worse.html

[szettervall]

I agree with you. I think their is room for both phones and others. I love my iphone, I look forward to seeing what the droid can offer. I personally have no issues with the AT&T network, I am 3g almost everywhere and get 1Mbit/sec downloads and speedtests. I tried the Samsung Omnia on Verizon and didn't care for the Verizon imposed limitations on the phone, I would prefer to have a good Android option on a network other than Verizon.

btw, Android phones run Linux everybody. The OS is Linux, the distribution/userland is Android.

[itsnah]

How tricky that is. Under a deep analization both phones are good. But the iPhone is certainly unique, in the sense that any other company (like Dell now) can make a phone that runs that Android OS. The iPhone will always have the exclusivity that Verizon wants to make look like tyranny.

Now, a lot of Apple haters will now fall in love with this ad. Because today, if you've been around YouTube lately, you'll see that it seems like almost EVERYONE is a marketing master and an expert on programming and history of computing; since they don't know what a widget is or what open development means and they claim it is better because droiddoes and iPhone doesn't. (Not saying those features are good or bad, just remarking the ignorance).

ps: Yes, I prefer Apple for my very own fair reasons, and it is okay to call me a "fan boy" if you like.

[seven7dust]

wow! that seems a bit desperate , for a company as big as verizon !

[Groucho6]

Verizon isn't winning any friends with their childish Droid ads ? they just make the company look childish and desperate.

[tismeinaz]

Don't you think it a bit strange that Verizon, the king of proprietary phones in whining about proprietary phones? The ad sounds more like the ad guy writing it is a phone addict and knows it and is angry because he can't quit the habit.

[mscheek]

Exactly! Who was it that crippled features built into the Razr, so that you would have to buy your pictures, etc. from Verizon? And see David Pogue's latest column on other user-surly Verizon practices: http://www.nytimes.com/2009/11/12/technology/personaltech/12pogue-email.html?_r=1&8cir&emc=cira1

This iPhone user isn't going back to Verizon even if they get the iPhone.

[frozenjello]

@mscheek, Very interesting NY Times article about Verizon's scummy practices. It's not limited to Verizon, though. Last month I bought my father a Nokia 2610 prepaid phone from AT&T. The right-hand 'soft' button is labeled "MEdia Net". Pressing that button instantly starts a data download, and he gets charged something like 10 or 20 cents (I forget exactly). Now he knows not to ever press that button. At least it's not $1.99 like Verizon charges.

[KHannemann]

Yeah, I think it's strange - more than that, it's asinine. I had two different Verizon Blackberries and both were deliberately crippled by Verizon. Their service in my area (Northern Virginia) left a lot to be desired, and so far AT&T has been better.

[Vegaman_Dan]

@mscheek:

Unfortunately, Verizon isn't alone in controlling the handset market device options / features. AT&T, Verizon, Sprint, T-Mobile- all of them are very fond of all sorts of nickel and dime fees for these things like saving photos off the phone.

[montex66]

Looks like we have to bring it up yet again: Apple and ATnT have an exclusive 5-year contract, which began in June 2007. Therefore, this contract will not end until June 2012. There will be no deal with Verizon or any other carrier in the US before this time.

It just astonishes me that so many people simply cannot grasp the implication of an "exclusive 5-year contract". How could it possibly be any clearer that there will be no Verizon iPhone any sooner than June 2012 - if ever? But it gets hits on web sites so the discussion continues.

[Vegaman_Dan]

Keep in mind that that same contract only specifies the phone model they released at that time. Any and all future generations of the device are not held to that contract limitation- something that isn't lost upon those other carriers or media. There's nothing preventing Apple from building a 4G model meant for Verizon's upcoming network for example.

[justinxtreme]

But recently rumors are spreading saying Apple might terminate that contract. I want them to jump to T-Mobile cause somewhat Verizon is very strict and well IDK

[flyfish2000]

Question on the 3 yr vs the 5 yr contract. I remember in June 2007 when Steve Jobs was on stage at the WWDC, he stated (an I believe I remember this correctly) that AT&T's exclusive would be for 3 years with (2) one year extensions. I did some searching and have found articles for both 3 and 5 year contracts (obviously even the journalists can't get the story straight). Can you please provide a link for the exclusive 5 year contract? Also, even if AT&T has a 5 year contract, this would not stop Apple and VZW from doing something that does not violate the contract terms. But, who know what that would be. I'm not one to speculate and even get into the discussion. I am just looking for facts. There is too much rumor in the air for me.

[Perry_Clease]

"Can you please provide a link for the exclusive 5 year contract?"

I would like to see the contract. There is a lot of speculation from pundits and posters, but only Apple and AT&T know the details.

[jinwa]

15+ year Verizon customer. BUT Verizon is the carrier who crippled their phones from bluetooth sync, tethering, and more to force us to either use VCast services or hack our phones to do what they were designed and built to do. Plan to NE2 in another couple weeks to a Motorola Droid.

[justinxtreme]

Yes! finallly someone who understand me...

Verizon cripples their phones like all the time especially with their touchscreens...

But Palm manage to convince them to allow open-phone manufacturing so that's why the Droid doesn't have any modifications from Verizon like crippling Bluetooth or GPS
Cause if Verizon wants the Pre they have to allow open source manufacturing and they wanted it so bad they allowed it. Palm great job

iPhone is great as-is... No need to change networks. I can see a CDMA iPhone would kinda suck... it just isn't world compatible plus IDK just not feelin it you know...

Droid is Verizon's first phone to use the open-source manufacturing great job

iPhone would be nice on T-Mobile. That would mean T-Mobile will enable 3G speeds (frequencies and all) on the iPhone 3G/3GS

[hermantf]

Both companies have their strengths and weaknesses. Verizon has always been behind the curve when it comes to their phones. But they have outstanding coverage. AT&T has the iPhone, which by any standard is an outstanding phone that raised the bar on what a cell phone should be. But their coverage is sub-par. In my perfect world, Verizon would have the iPhone, or AT&T would have Verizon's coverage. At least I can dream....

[mrobmsu]

In my perfect world, Verizon would have the iPhone, and would charge a reasonable amount of money for their data plans, maintain their coverage--which is excellent--and stop their gouging. Now that's a dream. . .

[gerrrg]

Geez, staring too much between the lines can make you see things that just aren't there. Sure, iPhone is a very popular smartphone platform...

but Droid is gaining market share all by itself.

http://getclicky.com/droid

[baconstang]

I guess they'll lock up the geek market... everyone else could give a **** about that stuff.
Oh, they forgot the "doesn't do voice and data at the same time". Whoops, that's the Droid.

[justinxtreme]

Who does voice and data at the same time? just wondering.... well I do sometimes but not much of an important feature

[Perry_Clease]

"Who does voice and data at the same time? "

iPhone users

"well I do sometimes but not much of an important feature"

It is a very important and useful feature

[transporter2000]

@justinxtreme

I use voice and data all of the time. Let me give you an example, I use my phone for work, a customer emails me some information to review while I'm on the phone with them, I place them on speaker phone and review the email with them. So with the Droid, I'd have to hang up, check my email, then call them back? That's lame.

[Alan4ik]

It reminds me an Apple PC vs. Mac adverts. I think Verizon copied Apple's own idea of marketing.