iPhone Will Bring 'Value' to Verizon Shareholders: CEO
By adding Apple's iPhone 4 to Verizon's smartphone base, the number of customers will "jump dramatically and deliver significant value to our shareholders," Lowell McAdam, president of Verizon Communications, told CNBC on Tuesday.
"Our exclusivity is around our technology. We're going to get a huge movement of customers onto our network because of the quality of our network," McAdam said.
"We are investing in our backbone. We are investing in 4G LTE," he said.
"Right now the LTE chip sets are a little bit bigger. They take a little bit more power. Having them on tablets and USB's is sort of the sweet spot," McAdam said.
"With LTE—the video experience on 3G, while it was certaintly better then anything we've had before—it really is the game changer. You can do high defination video across the country. You can play games in real time because of the latency of LTE," he said.
"That changes the equation, which is what brings all those assets that Verizon has together and we'll use that effectively in the market," McAdam said.
"Over time I think it's logical that Apple and Verizon will be bringing these products to market," he said.
"The cost structure of LTE is so much more effecient than 3G, we do believe it's going to expand our margins," McAdam said.
In addition, Verizon FiOS, the company's digital TV and high-speed Internet service, is currently in 15 million homes.
Over time, the company expects to be in 18 million to fulfill franchise agreements, he said.
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