Verizon Wireless (NYSE:VZ) reportedly has been bolstering its 3G network to ensure it won't have problems handling Apple (NASDAQ:AAPL) iPhone data loads as the operator is expected to Tuesday announce a very long-awaited iPhone offering.
According to The Wall Street Journal, Verizon Wireless will continue its $30 per-month smartphone data plan with the iPhone, a move that could put an even bigger competitive squeeze on AT&T Mobility (NYSE:T) given the fact AT&T this past summer did away with unlimited smartphone data plans in favor of two tiered data plans, $15 for 200 MB and $25 for 2 GB, which came as a result of runaway traffic from smartphone users.
Last week Verizon sent out an invitation to media touting an event Tuesday in New York City headlined by Lowell McAdam, president and chief operating officer of Verizon Communications and the former head of Verizon Wireless. The invitation asked recipients to "join us as we share the latest news," but provided no details.
As the WSJ points out, Verizon has a lot at stake with the iPhone when it comes to network quality--the operator's main selling point. If it proves it can carry heavy data traffic, AT&T will have a more difficult time saying it didn't mismanage its own network.
In addition, Verizon has said that wider-spread adoption of LTE services should free up capacity on its 3G EV-DO network. The operator already boasts heavy data traffic from Android devices.
For more:
- see this WSJ article
Related articles:
A Verizon iPhone: Winners and losers
Moto CEO: 'Competitive dynamic' at Verizon could drag on Q1 results
WSJ: Verizon iPhone coming in early 2011