If you're tired of dropped calls and dead zones, and pondering the merits of turning in your iPhone for a DROID... hold on there, champ. AppleInsider says it's received a copy of a report by OTR Global, claiming that Apple has signed contracts to produce a UMTS / CDMA hybrid iPhone to be released in the third quarter of 2010.

The hybrid handset, built around a dual-system chip from Qualcomm, would allow the iPhone to run on virtually any GSM/UTMS cellular network worldwide -- and also on the CDMA2000 networks of US carriers like Verizon and Sprint. In particular, Verizon is cited in the report as the target carrier for the new devices.

The report states that Foxconn, the Taiwan-based sole-source provider of iPhone hardware at this time, will not build the new device. Instead, a subsidiary of Asustek known as Pegatron has been selected to kick off manufacturing. It's also rumored that the hybrid device uses a 2.8" screen, making the handset smaller than the current model which uses a 3.5" display.

Photos of the smaller display were first featured on iLounge in June of 2008 (see photo at right), sparking widespread rumors at the time that an "iPhone nano" was on the way. Over a year later, neither the smaller iPhone nor a Verizon model are available. However, if the leaked report is any indication, 2010 could be yet another year of incredible growth for the iPhone economy.

Most American television viewers have been treated recently to endless reruns of Verizon's "iDon't" advertisements. These ads attack the iPhone, playing music that's similar to that played in iPhone ads while displaying a series of messages stating such brilliant and cutting phrases as "iDon't have a real keyboard," "iDon't run simultaneous apps," and so on.

Mac fan and Chicago Sun-Times writer Andy Ihnatko was apparently as fed up with the ads as most of us here at TUAW, so he took Verizon to task in a Wednesday column. In the column, he takes on Verizon's claims and for the most part finds them lacking or at least overblown.In describing the faults of the ad campaign, Ihnatko says "Its claims about the limitations of the iPhone are baloney (Mostly.)"

Andy has been testing the new Motorola Droid phone for an upcoming review, and he does like the phone -- a lot. But his take on the ad campaign is right on the mark: "Verizon's 'iDon't' is a terrible commercial. It provokes experienced iPhone users like me to get all Tyra Banks on the phone and the Android 2.0 OS. That can't possibly be good for business."

Don't mess with us iPhone fans, Verizon...

[via Chicago Sun-Times]

Stung by some pretty aggressive advertising by Verizon, AT&T has had enough and is suing the communications giant for false and misleading claims.

AT&T says the ads, which show that AT&T has poor 3G coverage compared to Verizon are causing it to lose "incalculable market share."

According to the lawsuit which AT&T filed in Atlanta federal court, a recently broadcast ad campaign shows maps with white spaces that mislead consumers into thinking AT&T has no network coverage outside of areas where it offers high-speed mobile services, known as 3G.

But AT&T argued that its customers can "fully use their wireless devices outside of a '3G' coverage area and undisputedly have coverage in areas depicted by white or blank spaces on the maps used in Verizon's advertisements."

Verizon says the lawsuit has no merit, and Verizon Wireless spokeswoman Nancy Stark said the ads "clearly state" that voice and data services are available outside 3G areas. She said the ads were intended to tell consumers about coverage for smartphones, which are used for data services.

If you want to see the ad that sparked the lawsuit, click here.

[via Engadget]

Just last week, Verizon released Media Manager for the Mac. While many customers are saying it's less powerful than its Windows-based counterpart, it received significant changes this week. Namely, users can now stream content from their iPhoto and iTunes libraries to a FiOS DVR (something TiVo did three years ago, but let's not nit-pick).

With the desktop app running (configured as a simple preference), you can browse iTunes playlists as well as your entire library. From iPhoto, browse your library, events and slideshows. Keeping events intact is nice for when you want to show Aunt Shirley pictures from your trip to Scranton.

Note that this requires a FiOS TV DVR Set-Top Box, Mac OS X 10.4 or greater, iTunes 7 or greater, iPhoto 6 or greater and QuickTime version 7 or greater. For an unnecessarily enthusiastic demonstration of the software, check out the video after the break.

(Screenshot courtesy of Dave Zatz / Zatz Not Funny)

[Via Engadget]

Is AT&T holding back the iPhone's sales potential? That's the conclusion of analysts at Piper Jaffray. In a report issued today, the firm says Apple is likely to go with multiple carriers, as the company is already doing in other world markets like France and the U.K.

To make the point, the report cites iPhone sales in France, where Apple's share of the smartphone market zoomed to 40% from 15% since Orange lost the exclusive there.

What does that mean for AT&T? If Apple finds additional partners, AT&T could lose a hefty chunk of customers who haven't been too thrilled with the way the communications giant has performed with the iPhone. There is still no tethering, MMS took a long time to roll out, and there is a continuing complaint of dropped calls from every corner of the country.

One wonders what is going on inside Verizon. The best-regarded US cell carrier for coverage & network quality is the subject of many rumors about the iPhone being offered, and others rumors of the mythical Apple tablet coming to Verizon. It's all especially interesting as Verizon has been bashing the iPhone in a series of TV ads hyping the upcoming Droid from Motorola and Google. Doesn't seem like Verizon is warming up the relationship.

It will be an interesting next few months as competition increases; partners may or may nor change, and Apple will be looking to increase market share for one of the hottest phones on the market.

[via Business Week]

For the last couple of weeks, I've been testing the Verizon MiFi portable WiFi hotspot. After writing about the MiFi, a few months back, I was placed on a waiting list to receive a test unit. Could the MiFi enhance the iPod touch experience to bring it into the realm of the iPhone? A unit finally came free and I finally got my hands-on experience to discover whether my assumptions would be proved right or wrong.

The MiFi, which is a portable EV-DO router, provides a 3G connection through an absolutely tiny unit. All plastic, it's about as thick as an iPhone and about two-thirds as large as its front face. The MiFi's entire user interface is its single button (seen at the bottom right of the image here). When pressed, the button switches on and glows green. Pressed again and held, the unit turns off and the green glow disappears. Sprint offers a near-identical unit, except it's finished in brushed metal instead of black.

Read on to discover how my MiFi testing went...

Gene Munster, the Piper Jaffrey senior research analyst who usually hits the nail on the head when it comes to Apple forecasts, thinks that Apple will move to multiple U.S. carriers within the next year. He believe that this will happen next summer, which has been the time when Apple has introduced new models of the iPhone.

Munster noted that having multiple carriers in a market has helped Apple to achieve greater success in terms of market penetration. He pointed to France as an example; originally, Apple inked an exclusive arrangement with Orange. When it moved to a multi-carrier deal, Apple's market share in France jumped to about the 40 percent range. In the U.S., the iPhone's market share is only in the mid-teens.

Many industry pundits expect the next iPhone carrier to be Verizon, since they are beginning a transition to a new, iPhone-compatible 4G network (LTE) in the next year. This would make the transition rather simple for Apple, since they wouldn't have to design an EV-DO iPhone, but instead just use the current hardware design.

Update: Per TUAW reader Ben C., the Verizon 4G transition is not expected to be completed until 2013. In addition, a CDMA-based iPhone would need to be deployed for Verizon. Thanks for the correction and explanation.

[via LoopInsight]

Apparently yesterday's poll about the release date of Mac OS X 10.5.8's made some waves in the Apple swimming pool, since we've seen over 6,400 responses in about 15 hours. That poll also made TUAW reader Clinton hungry for a new poll. He wrote:

"Could you do a poll? There is so much speculation about Verizon and a 4G network and the possibility of iPhone going to that platform once it is up and running in 2010. I would like to see a poll to substantiate all the speculation that AT&T customer will leave for Verizon's network if iPhone is available on Verizon's new 4G."

Along with that explanation, Clinton also provided a question and several multiple choice answers. Since he had done most of the hard work, we couldn't help but run this poll. If none of the answers meet your needs, or if you have additional comments to make, please use the comments link below.

In a minefield of failed "iPhone killers" one is making some headway on fulfilling that murderous promise: the Palm Pre.

Perhaps it's no surprise: the Palm Pre was conceived by a team that includes plenty of Apple alumni, including Jon Rubenstein, who was made Palm's CEO yesterday to replace Ed Colligan. (John Gruber reminds us of one of Colligan's more famous quotes.) Rubenstein used to be the general manager of Apple's iPod division.

Not only that, but Fred Anderson, Lynn Fox, and Mike Bell are all connected (if not employed by) the re-energized Palm. Valleywag's Ryan Tate says it's no wonder, then, that the Pre syncs with iTunes right out of the box.

Competition is good, though, right? We'll see improvements to both the iPhone and the Pre because of the products' competitive relationship with each other. Look at the rivalry between Canon and Nikon: The result? Awesome cameras both. In the end, the customer wins.

This is true with carriers, too, as exclusivity agreements begin to expire. There were rumblings that the Pre would be released on the Verizon network around Christmas, but blowback from Sprint CEO Dan Hesse pushed the rumor mill's schedule back a month to January 2010, according to The Wall Street Journal.

Watercooler talk suggests that the iPhone's exclusivity agreement with AT&T expires around the same time for U.S. customers, but the Magic 8 Ball says that we might not see an iPhone for Verizon until both they and AT&T finish their LTE networks.

If you're using a Pre with your Mac, especially if you're taking advantage of the iTunes sync capability, let us know in the comments how it's going.

Here at TUAW central, we fell into a debate last night about the merits and tradeoffs of MiFi and the iPhone. If you haven't heard of MiFi, it's a portable EV-DO router from Verizon. For $149 for the equipment (there's a $50 rebate), and for $60/month, you get up to 5GB of WiFi based data that you can tether and share.

The MiFi has a fairly limited WiFi range (about 20-40 feet max) and supports only 802.11b and g. Battery life seems limited to about 4 hours of active use. So why the attraction, and why the debate? After yesterday's slightly disappointing iPhone updates, namely the hefty hardware prices for in-contract customers and lack of AT&T announcements on tethering, I felt that the MiFi might provide a cost effective tethering solution for iPhone, iPods, and laptops.

The reasoning works like this. If you can bear to stick another gadget in your pocket or backpack, both iPods and iPhones can use MiFi's data plan. You can Skype to your heart's content (or, realistically, up to the 5GB monthly limit). This helps especially if your EDGE or 3G coverage is already awful when compared to Verizon's EV-DO network. MiFi gives you the opportunity to dump your entire iPhone plan and replace it with possibly better data. And with no US tethering yet announced for the iPhone, MiFi offers laptop as well as iPhone data; its WiFi connection appears to be platform agnostic.

So are you ready to dump your iPhone data plan? If so, you'll want to consider a phone number for your iPhone. If you've already got an AT&T plan on another phone, just pop in the SIM. If not, consider Pay As You Go. For $100, you can buy a one year credit that charges at either $0.25 a minute or $0.10 a minute with a $1/day minimum. This gives you a phone number for incoming calls, allows you to use Skype for outgoing calls, and should you have problems with MiFi or just aren't carrying it along, you can use those minutes to place normal calls. Obviously normal AT&T plans have better per-minute and SMS rates.

There are drawbacks. Along with convenience (now carrying two gadgets around? Plus your laptop?), you give up Visual Voicemail. It's one of the iPhone's nicer features. Pay As You Go, for example, gives you regular voicemail but it's not quite the same. Plus, the $60/month price? It's okay for what they give you but it's no huge bargain. Here's a quick summary of some of the the pros and cons of this approach.

Pros

• Tethering. Above-board and sharable with a couple of nearby friends.
• Works with iPod touch.
• For that matter, works with iPhone in a laptop-free way that an Express Card does not
• Skype becomes a reasonable communication option

Cons

• Two gadgets to charge, two gadgets to carry
• No Visual Voicemail
• Skype is what it is, lagged audio and all
• For a data-only plan with tethering, pricing is not great but it's pretty much in-line with other plans out there
• Bulkier than express card

Thank you to the TUAW reader who sent us the MiFi tip!

In addition to the earlier reports regarding a potential alliance between Apple and Verizon, BusinessWeek has released a story where Verizon Wireless CEO Lowell McAdam reveals that he has been in discussion with Steve Jobs in the past six months.

The result, the magazine claims, could be two iPhone-like devices using Verizon's CDMA network. One would be a lite version of the iPhone, the other a 7" screen "media pad" -- which would let users listen to music, view photos and high-def videos and place calls over WiFi. The media pad, according to BusinessWeek, is supposed to be smaller than Amazon's Kindle, but with a bigger touchscreen. The so-called iPhone lite would be smaller and thinner than the existing handset. One of these devices could be introduced as early as this summer.

It's not clear if either or both of these hypothetical devices would get around the AT&T exclusivity for the iPhone by being 'different enough' from the existing model. Still, the media pad concept aligns nicely with reports from manufacturers that a new portable product is in the works.

Thanks to everyone who sent this in!

Now, I understand this may be a very niche subject for our dear readership, but as many of you may remember, I'm a Verizon customer. That's why this morning's news about Verizon testing its Long-Term Evolution 3GPP (LTE) service in various parts of the U.S. has me excited.

Yes, while it's amazing that Verizon is getting 60Mbps downloads using LTE in Columbus, Minneapolis, and northern New Jersey, what's exciting to me is the fact that LTE plays nicely with GSM. If you could use a GSM phone on the Verizon network -- I think you can see where I'm going with this -- you might be able to use an iPhone with Verizon service.

While it's true that Apple and AT&T have an exclusivity agreement with each other, Verizon and Apple have previously used two completely separate kinds of technology (CDMA versus GSM, respectively) -- preventing any kind of interoperability. With Verizon at least speaking the same language as iPhone handsets, the possibility of keeping my carrier and having my dream handset comes closer.

In theory, at least; it isn't as easy as flipping as switch. If it works anything like, say, the procedure for using your iPhone with T-Mobile here in the U.S., it requires unlocking the phone with QuickPwn or yellowsn0w. Apple has recently suggested that it considers jailbreaking iPhones to be a violation of DMCA. Interpreted broadly, that may include unlocking software, too.

Add to that some SIM cards that don't work with unlocking software, like some from T-Mobile. There's nothing suggesting that Verizon's new LTE SIM cards will work right out of the box. Even if they are, advanced features like Visual Voicemail won't be available, but that's something I can live without.

For me personally, I wouldn't mind either an iPhone or a Palm Pre. Maybe it's just a waiting game to see whose exclusivity agreement expires first, rather than trying to hack something together.

Then again, maybe I shouldn't get my hopes up. We've still got another year to wait before Verizon rolls out LTE service to most of the country.

[Via Electronista.]

Update: Commenters Andrew and Shane made a good point that I failed to grasp when I wrote this: Verizon's LTE implementation will not necessarily mean that GSM phones will work on Verizon's LTE network. LTE works like this: If you have an LTE chipset in your phone, awesome. If you don't, your phone will fall back to the network's prior 3G technology. In Verizon's case, that's still CDMA, which the iPhone doesn't support. Now, if Apple were to build in LTE support into their next round of iPhones (in anticipation of AT&T's adoption of the standard in 2011) there might be a chance this will still work, but that's a lot of ifs. Thanks, guys!

After a fourteen-month wait, the iPhone is finally coming to Vermont.

"But isn't Vermont a part of the US?" you ask. Well yes, but AT&T -- the iPhone's exclusive carrier in the US -- has no wireless coverage in the Green Mountain State, so the iPhone has never officially been made available. Some enterprising Vermonters have set up blogs and even gone underground with their jailbroken iPhones, but that's all about to change.

Earlier this week, Vermont's WCAX TV reported that area providers Verizon and Unicel have merged, and AT&T will be awarded overlapping service areas to prevent a wireless monopoly in Vermont.

The wait is almost over, Vermonters! Now you can enjoy standing in long lines like the rest of us.

Thanks, B. Marriner!

In an interview with Financial Times [registration required], Verizon CEO Ivan Seidenberg shared his company's answer to the iPhone's popularity

"...As handsets become banking tools and games controllers, he argues, mobile operators can up-end other companies' business models. 'It's very cool. And Steve Jobs will eventually get old ... I like our chances.'"

Seidenberg, who is nine years Jobs' senior, has decided to wait for his rival to "age out" of his position. This reminds me of the skinny 7th grader who laments, "Someday my bully will notice girls and lose interest in stealing my lunch money."

Or, perhaps by "old" he meant "out-of-favor" as Daring Fireball suggests. Like Jelly Shoes and Jarts, the appeal of Apple with Jobs at the wheel will eventually fade. All Verizon must do is ride out the trend, like a lobster boat in a Nor'easter.

Forget innovation and hard work. The sit-and-wait method is a good one, too. It worked for Estragon and Vladimir.

[Via Cameron I/O]

As I've often said right here at TUAW, I have a need for speed. I want my computers, my phones, and especially my Internet access to be as fast as possible. When I'm at home, secure in the knowledge that my Time Warner Business Cable connection is the fastest I can get (until FIOS comes to my hood), things are going well for me and looking good.

But what happens if I have to leave the house and go on the road as I frequently do? How can I possibly maintain my connection to the Internet while mobile and still get the speed I need? Fortunately, there a a few solutions to this problem such as using wireless "hotspots" around town or using a cell phone's data connection as a high speed modem for my Mac Book Pro.

However, for true freedom, a hotspot isn't the answer for me as you can't always find one when you need one or they cost too much money. As an iPhone user, the option to use my cell phone as a high speed modem was also out. So, that left one obvious choice for me: EVDO cards. Now that I had decided an EVDO card was the answer to my needs, several more questions immediately came to mind.

Which card should I get and from which provider? Would the cards work with my laptop of choice: the Apple Mac Book Pro? How much would the cards and data plans cost me? And the most important question of all: what kind of speed would I get?