Although the move may be significant from the perspective of relationship development between Apple and Verizon, as mentioned by TechCrunch , we believe that direct success of Verizon’s current iPad offering may be very limited. currently the iPad is not compatible with CDMA so users will need to carry a MiFi device to connect to the Internet. Average data revenue per subscriber (ARPU) is a key driver to our mobile data revenues, and we believe that the current iPad offering will not impact ARPU in the near term. our current price estimate is $31.69 for Verizon, which is slightly below the current market price. MiFi Device Requirement Apple does not have a CDMA version of iPad, which is the mobile technology that Verizon uses, and 3G iPads from the company can only connect to GSM networks. Thus in order to connect the iPad to Verizon’s network, a user requires an additional MiFi device that connects to Verizon’s CDMA network and creates a local WiFi cloud. The user can then connect his/her iPad to this cloud and access the Internet. Verizon is selling WiFi iPads bundled with its MiFi device. Although this combination costs the same as the 3G iPad from AT&T, carrying an additional device may deter some users from buying the bundle from Verizon. iPad is positioned as a quality mobile device and therefore convenience and mobility are important, and we feel the MiFi device presents a handicap. Additionally, the battery life of the MiFi device is significantly less than the iPad’s thereby limiting usage time without recharging. Carrier Data Plans Verizon is offering three data plans for the iPad which include $20 per month for 1GB data limit, $35 for 3GB and $50 for 5 GB. AT&T is offering two data plans for its 3G iPad — one for $15 per month for 250 MB data limit and $25 per month for 2GB. for users who tend to use low to moderate amounts of data (less than 2GB per month), AT&T’s data plans is cheaper while Verizon’s data plans are a better proposition for heavy data users (more than 2GB per month). AT&T claims that 98% of its subscribers use less than 2GB of data per month. since AT&T has 30% of the U.S. wireless subscriber base, we feel this is representative of data usage habits of consumers in the U.S. if Verizon’s current bundle is priced for heavy data usage, it might be missing the largest part of the market. Overall we believe that in order for the iPad to lift Verizon’s average revenues for data users, Apple will need to make a CDMA version. You can see the complete $31.69 Trefis price estimate for Verizon’s stock here. like our charts? Embed them in your own posts using the Trefis WordPress Plugin.
Categorized | Verizon
iPad: Limited Impact on Verizon
Posted on 13 November 2010.
18 Responses to “iPad: Limited Impact on Verizon”
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Is it safe for me to simply add that line, or does it jeopardize any of the non-mobile data I’m collecting?
Thanks for reminding me but I haven’t really tested it from any mobile device.
Resource on mobile data costs
We need to get more of the Oil Sand out of Alberta.
32665 is a SMS code. It doesn't use data, but will cost as a SMS/text message. If your plan doesn't include texting, it's usually something like 5-10 cents per text.
No you just had to qualify for 185k
Just an FYI that seems like extremly high closing costs.
9k on 185k purchase, someting does not seem right!
did you try the old turn it off and back on trick?
Keep in mind a roommate emergency fund. What happens when your roommate doesn't pay or moves out suddenly?
Managing mobile data Traffic – Alcatel-Lucent delivers
Sounds like you might need to update the Video Card. It does not appear that you have enough video memory to meet the requirements.
Not many apps have real value over using the browser, but maybe I’m spoiled with good mobile data connections!
I figure that they can give out any estimate they want to. It's up to the person if they want the job done for that price or not.
ClockworkMod recovery comes to the HTC G2
Take it bak or get some-one to fix it and try typing properly even am not tha bad!
Trust me the software upgrade will work. If you can upgrade it by yourself else take it Nokia care for upgrade.
I think the prada 2 is unlocked or at least what i heard, so the network matter. From what seen about 500 euros or 765 american dollars.
Windows Mobile Data Synchronization with SQL Server 2005 and SQL Server Compact 3.1: With the world’s largest or…
Hmm, I know, maybe so that people with tempers go on killing rampages?
take a genius to figure that out.