Verizon Makes It Official, Announces iPhone

Beginning in February, Verizon Wireless customers may purchase an iPhone that will run on Verizon's network, the company announced today in a long-anticipated statement.

At a press event in New York, Verizon Wireless officials said the new iPhones would be available February 10, with a 16 GB device costing $199.99 and a 32 GB phone costing $299.99. To get those prices customers must sign a two year agreement and pay for data usage. Data prices have not yet been disclosed.

Apple has produced a special versioin of its iPhone 4 to run on Verizon Wireless' network, which uses a different technology than AT&T, which until now has been the exclusive iPhone carrier.

The Verizon phone will, however, be similar to the AT&T version, with video calling capability when connected to wi-fi. iPhone 4 on Verizon Wireless will also include new Personal Hotspot capabilities allowing customers to use iPhone 4 to connect up to five Wi-Fi enabled devices.

An important step

"We are pleased to introduce millions of wireless users to the industry leading iPhone 4 on the nation's most reliable network," said Lowell McAdam, president and chief operating officer of Verizon. "This is an important step for the industry as two great companies join forces to give wireless customers one of the most important technological additions to the mobile landscape this century."

"Verizon Wireless customers have told us they can't wait to get their hands on iPhone 4, and we think they are going to love it," said Tim Cook, Apple's chief operating officer. "We have enormous respect for the company Verizon has built and the loyalty they have earned from their customers."

iPhone 4 features a 5 megapixel camera with LED flash, HD video recording, Apple's A4 chip, a 3-axis gyro and a distinctive glass and stainless steel design. The iPhone 4 also comes with the iOS 4, which includes multitasking, folders, Game Center, AirPlay and AirPrint wireless printing. Unlike the AT&T version, the Verizon iPhone will not allow talking and Web surfing at the same time.

And of course Verizon's  iPhone 4 customers will have access to the App Store, with more than 300,000 available apps.

Impact uncertain

While the iPhone 4's impending move to Verizon Wireless has generated tremendous interest, it remains to be seen how many subscribers it pulls from AT&T and other carriers. AT&T, with a reputation for spotty network coverage, has spent the last few months beefing up coverage in the nation's largest markets.

At Verizon Wireless, the iPhone will also face competition from Verizon's full line of other smartphones, many of which have earned rave reviews for their speed and function.

And speed might be an issue, at least in the short run. Verizon is currently rolling out its 4G LTE network with significantly faster download speeds than the 3G network. However, Apple is providing Verizon an iPhone that will run on the 3G network. Apple told Verizon it would need to make design changes to accommodate the faster network, but Verizon reportedly chose not to wait.