While competitor AT&T is celebrating the success of its exclusive Apple iPhone deal, Verizon Wireless CEO Lowell McAdam says he does not have any regrets about passing on the device.
In an interview yesterday with FierceWireless, McAdam said that Verizon carefully evaluated the iPhone opportunity but found both the business model and the distribution model unsatisfactory. Specifically, McAdam said that Verizon didn't like what he considers "restricted" distribution, meaning that Apple had asked that Verizon not to service iPhone customers. "We have put a huge investment into training our people," McAdams says. "The model was to say 'thanks for coming in' and then point them down the street to Apple."
He also discounted the iPhone technology, which many have praised for its simple and intuitive user interface. "The technology--that stuff could have been dealt with," he said.
But most of all, Verizon had difficulty with Apple's financial demands. "We made a $40 billion investment in our network in the last eight years. I don't think that kind of revenue split was commensurate with the investment that we have in the network. We are happy with the decision." -Sue