Monday, November 8, 2010

OnStar

Verizon Wireless currently offers the "Nationwide Plan with OnStar," which is a bundle plan between Verizon Wireless service and OnStar service.[23] With this plan, the Verizon Wireless phone is the "primary line" and the OnStar device is the "secondary line." This plan is actually based around the "Family SharePlan," with rates starting at $69.99 USD for 700 minutes.[24]

Effective July 13, 2009, OnStar and Verizon Wireless stopped accepting any new customers on this program. This decision does not affect those OnStar customers who already are enrolled in the Verizon Wireless shared minute program. While the shared minute program is being discontinued, OnStar customers can still use OnStar’s voice-activated Hands-Free Calling by purchasing minutes from OnStar.

Partnerships

The Claro brand ("claro" being Spanish for "Sure or Clear") was launched in Puerto Rico on May 18, 2007 as rebranding the Verizon Wireless trademark, after Verizon International sold its stake in Puerto Rico Telephone Co. (PRTC). Claro is the wireless arm of PRTC, which serves wireline telephone and data services in the island. The brand was introduced to the wireless segment after 30 March 2007 acquisition of the telecom by América Móvil.

The company has made public its plans to launch a GSM/UMTS network parallel to the CDMA/EvDO network it operates since 2002. Claro has mobile voice and data services in Puerto Rico's 78 cities and towns and its coverage is constantly expanding, the company says.

Verizon Wireless still offers voice coverage in Puerto Rico by roaming on the Claro network. On America's Choice II and Nationwide calling plans, usage on this network is included at no cost (considered Extended Network) but on any other plan it costs $.69 per min.

Starting May 1, 2009, due to an agreement with the CDMA company "Iusacell", Verizon Wireless offers the Nationwide + Mexico calling plans. These plans allows users to call Mexico as part of their regular minutes. Users who travel can also roam into Mexico at no additional charge.

On October 14, 2010 Apple Inc. and Verizon Wireless announced a partnership that would bring the Apple iPad to Verizon Wireless Stores across the United States on October 28, 2010. While the collaboration will not see Verizon compatible technology embedded in the iPad, it will bundle the iPad Wi-Fi with a Verizon MiFi 2200 Mobile Hotspot. [26]

Competitors

Competitors

Some of Verizon Wireless' primary competitors include:

  • AT&T
  • Sprint Nextel (including Boost Mobile and Virgin Mobile)
  • T-Mobile
  • U.S. Cellular
  • MetroPCS
  • Leap Wireless (including Cricket Communications and Jump Mobile)
  • Revol Wireless

Controversy

GPS disabling of certain devices

Verizon no longer restricts or disables GPS Chips in their phones. However, in previous years, Verizon had a history of restricting GPS functionality on many of the devices that they sell. On November 30, 2007 Verizon Wireless was named in a class action lawsuit alleging that the company deceived customers by advertising that the devices were "GPS Enabled." Upon purchase, the suit alleges that Verizon intentionally disabled the devices' free, built-in global positioning systems (GPS) then offered a proprietary Verizon fee-for-service GPS.[27]

Since this dispute, all smartphones sold on the Verizon network have their GPS receivers unlocked by default. Select older devices can be unlocked with a firmware upgrade. Phone hackers were able to restore GPS access to some older models which did not receive firmware updates. Access to aGPS, however, remains locked on some smart phones, notably the Palm Pre Plus[28], which requires aGPS in order to opperate as a Standalone GPS like Verizon claims it will do. They continue to force people to buy monthly services for things they sell as being included in the phone.

Bluetooth capability

Today, Verizon no longer restricts any bluetooth settings or capabilities. However, at one point Verizon did lock out some bluetooth options. Verizon advertised the Motorola V710 as having full Bluetooth capability, when in reality it had no OBEX or OPP functions built in. After many complaints, a class action suit was filed for false advertising, not only for advertising missing capabilities, but also for telling customers who complained to Verizon that an update was coming out "in November." The lawsuit was initiated in January 2005 and settlement decision became final on March 20, 2006, with Verizon offering to qualified members of the class action suit (purchased a V710 BEFORE February 2, 2005) a $25 credit to all of its V710 customers, or the option to trade in the V710 for $200 or original purchase price and allow them to keep their phone number and service, or $200 or original purchase price and allow them to break their contract and discontinue service with Verizon. The settlement to the lawsuit did not directly address the V710's restrictions. The same hardware crippling exists with Motorola's successor to the V710, the E815, but unlike the V710, the E815 was marked clearly that OBEX and OPP was disabled. Additionally, through a SEEM edit, OBEX could be enabled on the 815, but not on the 710 (the Verizon e815 lacks the OPP profile altogether).

OBEX and OPP was disabled on the majority of Verizon's handsets. This prevents phone to phone transfers through bluetooth. The reasoning given by Verizon is to prevent lawsuits involving the use of bluetooth to transfer licensed or copyrighted materials.

MP3 restrictions

In previous years, Verizon Wireless had removed the ability to use MP3s as ringtones for some phones. This included blocking the feature in firmware updates for the Motorola V710 and several other newer phones for ringtone transfers, making it more difficult - but not impossible - to transfer MP3s from the phone's microSD card at that time. This update also disabled editing of the homepage field in WebSessions making it more difficult to use alternate WAP gateways. One result of this crippling has been a prominent network of "unofficial" web sites, documenting how to enable, access, or use hidden or crippled features.

Today, nearly all Verizon Wireless phones can save an MP3 as a ringtone, simply by Picture messaging or e-mailing the file as an attachment.

Mobile Broadband plans

Verizon Wireless had come under fire by "power users" of its EV-DO wireless data network (called Mobile Broadband, formerly BroadbandAccess), for using language in its terms of service which heavily restricts what activities an EV-DO user can conduct even though the service is advertised as offering "Unlimited" data usage. The service was in fact limited to 5 GB of data transfer per month. The language in Verizon Wireless' previous usage agreement stated:

Unlimited NationalAccess/BroadbandAccess services cannot be used (1) for uploading, downloading or streaming of movies, music or games, (2) with server devices or with host computer applications, including, but not limited to, Web camera posts or broadcasts, automatic data feeds, Voice over IP (VoIP), automated machine-to-machine connections, or peer-to-peer (P2P) file sharing, or (3) as a substitute or backup for private lines or dedicated data connections... We reserve right to limit throughput or amount of data transferred, deny or terminate service, without notice, to anyone we believe is using NationalAccess or BroadbandAccess in any manner prohibited above or whose usage adversely impacts our network or service levels.[29]

Under these terms, customers will have to pay five cents per additional Megabyte (MB) using more than 5 GBs per month.[30]

"Dim-dad" protest

In 2004, Verizon aired an advertisement depicting a computer-illiterate father being reproved by his precocious daughter and scolding wife. The advertisement drew criticism from radio commentator Glenn Sacks and advocacy group Dads and Daughters, which said, "It's reflective of some deeply entrenched cultural attitudes -- that fathers are second-class parents. . . . To operate from the assumption that dad is a dolt is harmful to fathers, harmful to children, and harmful to mothers."[31] The ad was subsequently removed from airing.

Kelsey Smith cell phone records

On June 2, 2007, Kelsey Smith, a teenager from Overland Park, Kansas, was abducted in a Target parking lot behind the Oak Park Mall. She was murdered later that night, and immediately after an abandoned car was found, a search began for her. Local law enforcement involved in the investigation contacted Verizon Wireless, the family's cell phone provider at the time of the murder, for records to pinpoint a search location for her. Despite efforts made by the local investigators and eventually the FBI, it took Verizon three days to hand over cell phone records to law enforcement.[32] A Verizon technician pinpointed a cell phone tower and told investigators to search 1.1 miles (1.8 km) north of the tower. Within 45 minutes, the body of Kelsey Smith was found. There is much controversy on why it took Verizon so long to cooperate with law enforcement.[33]

"There's A Map For That"

In late 2009, Verizon started an ad campaign "There's A Map For That," to parody the iPhone's "There is an app for that" and the AT&T network coverage. Since iPhones used AT&T, and maps used in the commercials claimed Verizon had five times the 3G coverage of AT&T, iPhones were not as useful as they could be with Verizon's 3G coverage. This campaign was followed by new "iDon't" ads for Droid phones which pointed out that Droids could do more than the iPhone could do. In November, AT&T filed a lawsuit against Verizon stating that they reach the same number of customers as Verizon Wireless, and claiming the ads were "misleading" and caused a loss of "incalculable market share." The ads only refer to 3G, and not overall coverage. However, the ads claim that many people outside urban areas may not receive 3G, in an industry where 4G may soon be the premium standard. Verizon has edited their ads, removing "out of touch" and adding in small print, "Voice and data services available outside of 3G areas."[34][35] AT&T still does not agree with the ads, stating in their response, "The ads still confuse non-technical viewers into thinking AT&T provides no service at all outside of its 3G coverage." Verizon responded as follows: "AT&T filed this lawsuit because Verizon’s 'There’s A Map For That' advertisements are untrue; AT&T sued because Verizon’s ads are true and the truth hurts."[36] AT&T was defeated and Verizon continues[when?] to air the "There's A Map For That" ad campaign.[37] AT&T has since issued a response featuring actor Luke Wilson, stating that AT&T covers 97% of Americans, although this is not entirely 3G coverage.

Refunds for billing errors

On Sunday, October 3, 2010, a Reuters story by Joseph A. Giannone and Diane Craft, that appeared online in the breaking news section of the Insight Broadband page, stated that Verizon Wireless "will pay millions of dollars in refunds to 15 million cell phone customers who were erroneously charged for data sessions or Internet use. Verizon said 15 million customers either will receive credits of $2 to $6 on their October or November bills, while former customers will get refund checks. The New York Times, which first reported the plan, calculated the total amount of the refunds could reach $90 million. People close to the settlement talks said they expected the refunds to total more than $50 million, the Times said. These people close also said the FCC is pressing Verizon to agree to a penalty for the unauthorized charges."

Acquisitions and divestments

  • At the end of 2006, Verizon Wireless bought out West Virginia Wireless, a regional GSM cell phone company.
  • On 30 July 2007, Rural Cellular Corporation (Unicel) announced it agreed to be acquired by Verizon Wireless (a CDMA carrier). Verizon said that it plans to convert RCC's GSM customers to CDMA technology, but it will continue to operate RCC's current GSM network in order to generate roaming revenue. The sale is expected to close in early 2008, pending approvals from the FCC and potentially the Department of Justice, to ensure that the acquisition won't be anti-competitive in some geographic areas. On 4 October 2007, Rural Cellular Corporation Shareholders Approve Merger Agreement with Verizon Wireless "ALEXANDRIA, Minn., October 04, 2007 (BUSINESS WIRE) – Rural Cellular Corporation ("RCC" or "the Company") (NASDAQ:RCCC) today announced that its shareholders voted to approve the merger agreement providing for the acquisition of Rural Cellular Corporation by Verizon Wireless for approximately $2.67 billion in cash and assumed debt."
    • In November 2007, a few Rural Cellular (Unicel) Subscribers mounted an effort to stop this sale of Unicel because "Cell Phone Service Will Change" and "GSM Service Will End".[citation needed]
    • On August 1, 2008, the FCC voted to approve the deal. Per the Department of Justice, Verizon will divest certain properties in New York, Vermont, and Washington in order to complete the acquisition.[38]
  • In mid 2007, Ramcell of Oregon made a deal to sell its assets to Verizon Wireless, Integration of local company to increase coverage area in Southern Oregon began in late 2007.
  • On 22 January 2008 SureWest Communications announced that it has entered into a definitive agreement to sell the operating assets of its Wireless business to Verizon Wireless.
  • On 5 June 2008, Verizon Wireless announced that it has entered into an agreement to acquire Alltel for US$5.9 billion, plus the assumption of debt, in a deal that will create the biggest mobile phone company in the U.S. surpassing AT&T. Based on Alltel's projected net debt at closing of $22.2 billion, the aggregate value of the deal is $28.1 billion. The FCC approved Verizon's purchase of Alltel Wireless by a vote of 5-0 on November 4, 2008.[39] The FTC approved of the acquisition on December 10, 2008.[40] On January 9, this deal was finalized, making Verizon Wireless the largest carrier in the country.
  • November 2008 Verizon Wireless purchased 2 markets in Kentucky formerly belonging to Dobson Communications from Att. This purchase closed the I75 corridor from Lexington, KY to Tennessee in which Verizon was lacking service. It also added about 40,000 customers to the Verizon wireless network.
  • On May 8, 2009, AT&T announced an agreement to sell five Centennial Wireless service areas in Louisiana and Mississippi to Verizon Wireless, pending upon FCC approval of AT&T's acquisition of Centennial.[41]
  • Also on May 8, 2009 AT&T announced a definitive agreement to acquire wireless assets from Verizon Wireless for $2.35 billion in cash. Under terms of the agreement, AT&T will acquire wireless properties, including licenses, network assets and 1.5 million current subscribers in 79 service areas, primarily in rural areas across 18 states. Verizon Wireless is required to divest these properties as part of the regulatory approvals granted for its purchase of Alltel earlier this year. The states represented are: Alabama, Arizona, California, Colorado, Iowa, Kansas, Michigan, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, South Dakota, Tennessee, Utah, Virginia and Wyoming.

Notes

Early in 2006, Verizon announced their intent to buy out the remaining 45% of stock of Verizon Wireless from Vodafone.[42] Vodafone, however, stated they “have no current plans to exit” the US market by giving up its stake in Verizon Wireless.[43]

On December 19, 2006, it was announced Verizon Wireless' CEO Denny Strigl has been called up to parent Verizon Communications to be the company's new President and COO. He was to begin serving in the new post on January 1, 2007. Verizon Wireless COO Lowell McAdam was to take over Strigl's role as CEO of VZW.[44]

Qwest Communications International Inc. (NYSE: Q) and Verizon Wireless announced on May 5, 2008 that they have signed a 5-year agreement for Qwest to market and sell Verizon Wireless service beginning this summer. Financial terms of the agreement are not being disclosed.[citation needed]