[opendtv] Re: IEEE Ericsson article on use of LTE for TV

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Tue, 26 Jun 2012 19:20:22 -0400

At 2:56 PM -0500 6/26/12, Manfredi, Albert E wrote:


But specifically on the initial deal, here's what your article said:
"AT&T is different, **or was when Apple launched the original iPhone** in June 2007. AT&T made lots of concessions to get iPhone, such as granting Apple control over the software and updates."
It doesn't say that Verizon got the same offers. All it says is that AT&T, **at that time** but no longer, had LESS bargaining power, and that therefore Apple could make a sweetheart deal with them. Exclusivity for AT&T, and Apple gets to behave more like the sucker of lemmings that is usually the role of the MVPDs and wireless carriers. 

How perverted. You really don't get it.
I cannot find a link to a source that verifies that Verizon was offered the same deal, but I have read this several times over the years. In truth it no longer matters.
The article DID NOT say that AT&T has increased its bargaining power. Just the opposite is true. The reality is that Verizon had little choice but to agree to Apple terms after AT&T prospered because of the iPhone deal.
The article stated correctly that "AT&T made lots of concessions to get iPhone, such as granting Apple control over the software and updates."
Verizon has now agreed to the same concessions. In reality they did this years ago by teaming up with the suppliers of smart phones running Google's Android.
I cannot fathom where you come up with the idea that the cellular companies have the same level of control over the device on their networks that they held before the introduction of smart phones. 



And then comes the most important part of the article. It goes on to say:
"Perhaps 18 months ago, Verizon would have ceded more to Apple. After all, AT&T was stealing away customers who wanted iPhone, and Verizon had nothing even remotely comparable to offer. But then in autumn 2009, Verizon launched the Droid -- a cool, Android 2.0 handset supported by a $100-million marketing campaign. Other hot-in-demand Droids followed."
Exactly as I stated above. So if Android solved their problems, why was Verizon willing to agree to the same terms as AT&T? And why was Verizon willing to pay even more to keep Apple from making the iPhone available to Sprint and T Mobile. 

http://www.appleinsider.com/articles/10/12/06/verizon_may_pay_apple_to_keep_iphone_away_from_t_mobile_sprint.html
Analyst Shaw Wu with Kaufman Bros. said in a note to investors on Monday that he has heard from sources that Verizon is now more willing to accept Apple's terms in order to have access to the iPhone. In fact, Verizon may pay Apple even more to ensure that the iPhone remains exclusive to it and AT&T.
I also wonder why anyone would take sides on this sorry state of affairs (for consumers). Why would anyone prefer a vertically oriented, walled-in Apple empire, to the much more open alternatives, given that they have to deal with individual wireless carriers either way? It's like jumping from the frying pan to the fire. How do you keep missing that?
How do you keep missing the fact that Apple is the most valuable consumer electronics company in the world?
How do you keep missing the fact that they garner the lions share of profits from virtually every market they enter. 

There is only one explanation.

People LIKE what Apple is offering.

Regards
Craig


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