Apple Works with AT&T and Verizon on Tablet Carrier Deals

Posted by Editor on Jan 22, 2010 in Apple, Tablets

Some new reports from Gadgetcrave and Fox News on the all-important carrier deals being worked on by Apple for its iPad/iSlate/tablet computer.

It’s Friday, January 22 and in this young year of 2010 that can mean only one thing: we’re going to have to end off the week with one more Apple tablet rumor. Sorry. The tablet is likely to be carried by AT&T. No surprise there, since that’s where the iPhone’s been [stuck] all along. The second part of the report is where it gets somewhat interesting: Fox states that Verizon may also be carrying the tablet. The report cites sources at both Verizon and AT&T as confirming that they’ll split the duty of covering the tablet. It then goes on to clarify that both companies are currently in discussions with Apple and that a final deal has not been negotiated with either.

So will it be Verizon? AT&T? Or both? A lot of frustrated iPhone users would likely welcome a switch to a new carrier, since there are a host of complaints about AT&T’s coverage and handling of the phone (tethering, anyone?) The AT&T part isn’t surprising, given early reports that the tablet would rely on HSDPA, a feature used by AT&T that, according to company spokesman Mark Siegal, “effectively doubles the speed of our 3G network.” Besides, AT&T is already a high-profile partner of Apple, as the carrier of choice for the iPhone.

Verizon Wants In

Verizon spokesman Jeff Nelson told me the company has been considering tiered pricing for upcoming tablet devices that will use the company’s network, though Nelson wouldn’t specifically name Apple’s tablet. The data plans are said to be structured similarly to those each company currently offers for netbooks and laptops. But we’re unlikely to hear about pricing at Apple’s event next week.

According to another source within Verizon, Apple has been in talks with ‘the big red map’ to offer the tablet on its robust CDMA network. Additionally Verizon is in talks with Apple to bring the iPhone to its network by late spring or early summer, but specifics haven’t yet been finalized.

Verizon remains hush-hush given Apple’s contractual obligations to AT&T for the iPhone. So will both AT&T and Verizon’s network hold up under the data-gobbling pressure of an Apple tablet? ”Our 3G network covers 287 million Americans,” says Verizon spokesman Jeff Nelson. “We didn’t build a network and then cross our fingers that devices would work on it. When we built our network we built it with these devices in mind. AT&T didn’t, and that’s the difference.”

Nelson admitted that Verizon did see a “significant spike” in data usage following the launch of the Droid, but claims it hasn’t caused any problems for the network. But let’s be clear, a 10- or 11-inch tablet would dwarf a Droid in data usage. ”Bring it on!” Verizon seems to be shouting.

AT&T Fights Back

“No one would believe for one second that the Droid caused an iPhone-like spike in data usage,” laughed AT&T spokesman Mark Siegal. ”With the iPhone and other smart devices, we saw a 7,000 percent increase in data usage over the last 13 quarters.”

Answering criticism about customer complaints and Verizon’s assertion that it didn’t plan well for data-heavy devices, Siegal said “AT&T recognized years ago that mobile broadband was the wave of the future. And we built our network on that fact. We’ve also been aware of complaints and have been actively investing in our 3G network, installing new towers and continuing to provide the fastest 3G network in the U.S.”

According to sources inside Verizon, the company’s version of the tablet will feature built-in Wi-Fi utilizing Verizon’s hotspots for free data; the device will switch onto the 3G cellular network when it’s away from a hotspot. This makes it easy and safe to connect to trusted Wi-Fi servers, and you’ll get a line-item for that data service on your cell bill. Basically you won’t need a home data modem service anymore.

AT&T wouldn’t say specifically if millions of Apple tablet users would suddenly be hopping from Wi-Fi hotspot to hotspot with its version of the tablet, but the company certainly wants you to know it’s ready to handle that functionality. ”We have the largest network of Wi-Fi hotspots in the country,” said AT&T spokesman Mark Siegal. ”Verizon doesn’t even touch us. You can go just about anywhere and find an AT&T Wi-Fi hotspot. You can’t do that with Verizon’s hot spots.”