Verizon Wireless to offer CDMA iPhone 4 on Feb. 10

Apple Inc. (AAPL) and Verizon Wireless (VZ) did millions a favor and finally got a room.
The two biggest names in the domestic mobile business made it official today with Verizon Wireless announcing it will begin offering a CDMA version of Apple’s now six-month-old iPhone 4 beginning Feb. 10. The device will be available in a 16 GB and 32 GB version retailing for $199 and $299 after all rebates, required data packages and a two-year contract.
The true price of the device is expected to be more for many as analysts expect the lure of the iPhone on Verizon Wireless’ network is sure to draw a number of current AT&T Mobility customers. Such a move will require those switchers to post a few hundred dollars in early termination fees to make the switch. Verizon Wireless also said it would sell the device without a contract at a non-subsidized price.
The CDMA device is similar to the GSM/HSPA version available at AT&T Mobility at the same price points save for a few differences caused by the different technologies. The Verizon Wireless version of the iPhone will not be able to access voice and data services at the same time, a marketing ploy used in the past by both AT&T Mobility and Apple in advertisements and expected to remain a point of promotion for AT&T Mobility. The CDMA version does however support usages as a mobile hot spot, allowing up to five devices to connect to the Internet using the CDMA iPhone’s 3G connection.
To the surprise of few, the CDMA iPhone will not support Verizon Wireless’ nascent LTE network nor include a GSM chipset to support international roaming on GSM-based networks. (Verizon Wireless did note that the device will be able to roam in more than 40 countries that house CDMA networks.) The LTE support would have limited the device to a network that covers just over 110 million potential customers compared with the more than 280 million pops covered by CDMA. However, it could prove a point of consternation for shoppers in the coming months as Verizon Wireless is set to unveil a handful of Android-based smart phones that run on both its CDMA and LTE networks, devices that also sport larger screens and comparable software capabilities.
Retail availability for the device will initially be limited to Verizon Wireless and Apple locations, though the carrier said the device would move to its third-party retail channels a few weeks after the official launch.
The only remaining question is pricing plans. It’s expected that the voice and messaging component will follow the lead of its current smart phone offerings, though there is still some question regarding how data will be treated. AT&T Mobility last year instituted capped data packages for its smart phones, limiting them to two gigabytes of data transmission for $25 per month before overage charges kicked in. Verizon Wireless currently allows unlimited data access for its smart phones for $30 per month, but has said it was looking at possibly rolling out capped data plans.
During a press conference announcing the device Apple also noted that while it has signed a multi-year contract with Verizon Wireless to offer the device it was not an exclusive deal. That could leave open the possibility of Apple’s iconic device soon being made available across other domestic carriers.