
Verizon Wireless launched a fresh battle with rival AT&T Inc. Tuesday, unveiling its plan to offer Apple Inc.'s iPhone 4 starting early next month, as the two carriers fight to lure defectors and win over new customers.
Verizon Wireless said the iPhone 4 will be available beginning Feb. 10 for a price of $199.99 for the 16GB model and $299.99 for the 32GB model with a new two-year contract. Qualified Verizon customers will be given the opportunity to pre-order Feb. 3.
Verizon Wireless, the country's largest wireless carrier, is confident enough in its network that it will offer unlimited data-use plans when it starts selling the iPhone. Such plans would provide a key means of distinguishing its service from AT&T, which limits how much Internet data such as videos and photos its customers may use each month.
A version of the iPhone for Verizon's network has been long expected, and the move ends AT&T's exclusive relationship with Apple. Analysts expect Verizon to sell anywhere from 9 million to 12 million iPhones this year.
Verizon Wireless, majority-owned by Verizon Communications Inc., has a lot at stake. More than any other U.S. carrier, Verizon Wireless has built its reputation on its network quality, and any stumble in handling iPhone traffic will call into question Verizon's major selling point. On the other hand, if it does handle the iPhone well, then AT&T will have a harder time arguing it didn't mismanage its own network.
AT&T has struggled to overcome complaints about network quality ever since it started exclusively selling the iPhone in the U.S. in 2007. That contributed to a decision last summer to offer new iPhone and other smartphone customers only pricing plans that cap how much data they send and receive. The move was aimed in part at gaining a measure of control over heavy iPhone users, who have overtaxed the carrier's network, leading to complaints about dropped calls and spotty service.
Source: The Wall Street Journal
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