Verizon's New Relationship

To the joy of smart phone users everywhere Verizon has announced it will soon carry the iPhone. But you might not want to break out your wallet just yet.

Admist the excitement of Verizon’s big announcement earlier this week came a few revelations of their new relationship with apple. First, the Verizon iPhone will only work on the 3G network. These phones have data speeds that are much slower than the 4G phone plus you can’t talk and surf the internet at the same time. And rumors are already flying that Apple will be releasing the iPhone 5 sometime this year. But Verizon might have to wait until the following January to get the updated version giving AT&T a solid head start.

Finally Verizon will also have to count on new customers for awhile. When the announcement was made AT&T was quick to inform shareholders that most of their iPhone contracts are on family and employer plans making it harder for them to switch carriers. Other potential losers include Sprint and T-Mobile that now face even more competition thanks to the iPhone. And Steve Jobs remains on top, a position that could strengthen now that another carrier is getting a piece of the apple.