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Verizon Beats AT&T in Voice Calls for iPhones

For millions of iPhone owners, or would-be iPhone owners, who dislike AT&T's wireless service or prefer Verizon Wireless service, liberation is at hand.  Starting Feb. 10, Apple's iconic smart phone finally will be available in the U.S. on a second carrier …

Personal Technology Walter S. Mossberg

Context & Ripple Effects

Verizon’s iPhone arrival follows years of preparation and a January confirmation that Verizon had secured the iPhone. A 2010 account of AT&T customers weighing a switch showed that carrier choice—not handset availability alone—had become central to the iPhone purchase decision.

The call-performance comparison gives prospective buyers a service-quality basis for that choice ahead of Verizon’s February 10 launch, rather than treating the second-carrier launch as a purely distribution change.

First-order effects

  • Verizon Wireless gains a concrete selling point for its iPhone launch among buyers dissatisfied with AT&T voice service.
  • AT&T loses the U.S. iPhone’s carrier exclusivity as a differentiator and must compete for iPhone customers on network experience.

Second-order effects

  • Verizon and AT&T face sharper pressure to make call quality and coverage visible parts of iPhone marketing, not merely handset availability.
  • Customers considering a move from AT&T gain more leverage because the same iPhone can be evaluated across two national carrier networks.

Third-order effects

  • Apple’s U.S. iPhone business shifts toward a multi-carrier model in which network performance can determine where handset demand lands.
  • If carrier competition becomes the main iPhone differentiator, operators’ network investment and traffic-management choices become more consequential to Apple’s distribution partners.

The trend: The iPhone is moving from a carrier-exclusive handset to a cross-network product, shifting competition toward service quality and customer retention.