News Of Dual-Network iPhone 5 Benefits Verizon More Than AT&T

Verizon's recent gaffe confirms that the iPhone5 will indeed be a dual-network device that will work with both CDMA and GSM. While the notion of a dual-network iPhone 5 isn't much of a revelation, the news helps Verizon more than AT&T. Here's why:

Another slip of the tongue has confirmed yet another detail about the upcoming iPhone 5.

Less than three weeks after Sony CEO Howard Stringer tacitly admitted that the next iPhone 5 camera would be of the 8 megapixel variety, Verizon's Chief Financial Officer Fran Shammo seems to have now confirmed that the iPhone 5 will indeed be a dual-network device, supporting both AT&T's GSM and Verizon's CDMA technologies. Venturebeat reports that "in an attempt to deflect an analyst probing for details on Apple's next phone, Verizon inadvertently mentioned that [the iPhone 5] will be a 'global device'."

While the iPhone community is always happy to have virtually any detail about the iPhone 5 confirmed or corroborated (except, perhaps, for the recent report of a late September release), news of a dual-network iPhone 5 should not come as an earth-shattering revelation to those who have followed the it over the past six month of so. It is true that Apple had to fashion an alternate CDMA-equipped iPhone 4 to work on the Verizon network, creating two network variants with very slight design differences between the two.

But the production of the CDMA model was a work-around for Apple; obviously, a deal with Verizon had not been solidified by the time the iPhone 4 was launched in the summer of 2010, meaning that the initial AT&T model had no CDMA capabilities. And as we all know, there was no way that Apple could have clandestinely outfitted the original AT&T iPhone to run on CDMA — too many iPhone geeks out there pop open their new iPhones to look under the hood. Any stealth move to equip the iPhone 4 for both networks would have been discovered. This time around, however, it makes good business sense to make sure that the iPhone 5 works on both networks; it will keep production costs down and make shipping and inventory far easier.

An interesting question to consider, however, is whether or not a dual-network iPhone 5 benefits either carrier, or is it just a wash?

I would argue that, while the dual-channel iPhone 5 revelation isn't going to be any kind of groundbreaking game-changer for either mobile carrier, it is Verizon that may have the most to gain from the notion that both companies will share the same iPhone design.

More than any other iPhone 5 topic on this blog, the subject of AT&T versus Verizon has inspired more angst, vitriol, and hurt feelings. We wrote an article about it a while back, and people weighed in on the issue with gusto, defending their mobile network providers with bravado. It's a fact: iPhone users are passionate about their carriers. AT&T and Verizon are like political parties around here. (I guess Sprint customers are the Independents.)

Thus, I know that I am stepping into a minefield with Verizon customers when I reluctantly state that CDMA is generally considered to be the slower of the two mobile technologies, disallowing the kind of multi-tasking that AT&T iPhone users typically enjoy. Whether or not this is true, however, is not the issue: the fact remains that this is the prevailing belief about Verizon.

With this is mind, one can imagine that it can only benefit Verizon for prospective iPhone 5 customers to see that the device works on both networks. Unlike the iPhone 4, which has two variants for GSM and CDMA, the iPhone is the same phone, same specs, same technology. AT&T will no longer be able to infer that they have the "better iPhone" model.

Sameness is the name of the game for Verizon this time around, as they will finally have a chance to compete with AT&T right out of the gate with the iPhone 5. The game plan will be the same for both carriers: AT&T will tout speed and versatility, and Verizon will roll out their maps. It should be a real hoot.