http://www.pcmag.com/article2/0,2817,2346071,00.asp
04.28.09

by Sascha Segan

Apple and Verizon Wireless may have found a sneaky way to work together
without violating Apple's exclusivity contract with AT&T, which runs at
least through 2010.

As we reported in 2007, AT&T's contract with Apple covers "all models"
of the iPhone. But it only covers iPhones. So if Apple builds something
that isn't an iPhone, well, all bets are off.

If BusinessWeek is to be believed, Apple is working on a "media pad that
would let users listen to music, view photos, and watch high-definition
videos," and which would "place calls over a Wi-Fi connection." If the
device doesn't make cellular voice calls, it may be able to avoid the
iPhone's AT&T exclusivity.

According to BusinessWeek, Apple has been talking to Verizon Wireless
about the device, as well as about another "iPhone-like" device which
may be the "iPhone Mini" I wrote about a few weeks ago.

Verizon has already been experimenting in the VOIP media pad space with
the Verizon Hub, a home-based media pad that makes Wi-Fi calls. Apple's
product would hopefully work better than the Hub, though.

Getting an iPhone Mini onto Verizon before 2010 may prove much more
difficult than launching a media pad, because of the iPhone exclusivity
contract with AT&T.

In any case, no deal has yet been sealed, BusinessWeek said.

Yesterday, USA Today reported that Verizon and Apple are talking about
possibly introducing an iPhone on Verizon's network in 2010. Comments
from Verizon's CEO Ivan Seidenberg and Apple's COO Tim Cook have led us
to believe that device would run on Verizon's upcoming LTE network, not
the carrier's current CDMA network, as USA Today reported.

We expect Apple to announce the next iPhone on June 9.
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