Verizon iPhone News: iPhone 4 Sales Mainly Online, FCC May Preclude 4G iPhone 5

Thumbnail image for Verizon iPhone.JPGThere are two Verizon iPhone stories today.  Verizon CEO Daniel Meade defended record numbers of iPhone 4 sales.  FCC spectrum rules may preclude an Apple iPhone 5 with 4G LTE for the Verizon 4G LTE network.

Verizon CEO Daniel Meade said that online presales fueled a record number of Verizon iPhone 4 sales and accounted for 60% of sales.  Because most of the sales were online, there were not long lines in Verizon Stores.  At peak sale times, the iPhone 4 brought 100
times more orders than usual to the Verizon website.

He confirmed to Reuters that Verizon is on track to sell 11 million iPhones in 2011.

This is the largest retail launch we've seen," Meade said.  "When I look over the last three weeks or so it
(sold) much more than we've seen in any previous device."

Although Consumer Reports reported attenuation problems with the Verizon iPhone 4, Meade said that the dropped call rate for iPhones was only 0.5 percent.  Reviewers also found a lower dropped call rate for the Verizon iPhone 4 than for the AT&T iPhone 4.  "You'll see more coming from Apple on LTE," Mead said.  "They understand the value proposition of LTE and I feel very confident that they are going to be a part of it."  Yes, but, what about the FCC?

No 4G LTE Verizon iPhone?
FCC spectrum rules could block the closed iPhone eco-system from using the network.

When Verizon purchased the 700 Mhz C Block spectrum for $4.7 Billion needed for its LTE network in 2008, Google insisted on "openness conditions." 

The conditions could mean that devices could run any app with no interference from the carrier, as well as that all handsets for the network would be unlocked, reported Ryan Singel at Wired Epicenter.

Verizon contends that the rules mean that it has to allow any
third-party app or device that doesn't harm the network but that it can
sell restricted devices and restrict apps on those devices.

However, Google previously stated in a letter to the FCC, "The Commission's open access rule is clear that C Block licensees "shall
not deny, limit, or restrict the ability of their customers to use the
devices and applications of their choice....The rule thus plainly
proscribes a C Block licensee from selling handsets to customers that
hinder a customer's ability to use applications of their choice, and
applies to all customers of a C Block licensee."

In an FCC ruling, it states, "Specifically, a C Block licensee may not block, degrade, or interfere
with the ability of end users to download and utilize applications of
their choosing on the licensee's C Block network, subject to reasonable
network management."

Mmmmn... it looks as if the iPhone iOS is not totally open like Android development.

When Wired asked, Verizon spokeswoman Brenda Raney said, "I couldn't speculate on that since an LTE iPhone doesn't exist."