Our long, dark, and frequently-ridiculous Verizon iPhone rumor nightmare is over. Verizon this morning at a press event here in New York City confirmed longstanding rumors that AT&T has lost their exclusive arrangement with Apple, and that Verizon will be getting the iPhone. According to Verizon, the device will appear next month and will be CDMA/EVDO only not LTE. According to Verizon, this is the culmination of two years of discussion between the two companies. “We have enormous respect for the company this team has built and the hard-won loyalty they’ve won from their customers,” Verizon COO Tim Cook proclaimed on stage. “This is just the beginning of a great relationship between Apple and Verizon.”

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Verizon today unveiled more detail about their LTE wireless broadband launch, announcing that they’ll be offering the 5-12 Mbps service in 38 markets and 60 airports starting December 5. Most importantly, Verizon finally unveiled their pricing for the new service, which after a year filled with endless hints by executives about wanting to try something new winds up being somewhat underwhelming, traditional, and expensive.

The base pricing for LTE laptop connectivity via USB modem (there will be no smartphones at launch) is significantly more expensive than the 3G pricing they unveiled in October, though the caps are obviously higher. Verizon’s current EVDO USB modem plans come in two flavors: $40 for 250MB of usage and $60 for 5GB of usage. Verizon’s LTE pricing will now be $50 for 5GB of usage, or $80 for 10 GB of usage, with $10 per each additional GB. Sayeth big red:

Verizon Wireless customers can choose from two 4G LTE Mobile Broadband data plans: $50 monthly access for 5 GB monthly allowance or $80 monthly access for 10 GB monthly allowance, both with $10/GB overage. For laptop connectivity, two 4G LTE USB modems will be initially available: the LG VL600 is available at launch and the Pantech UML290 will be available soon, each $99.99 after $50 rebate with a new two-year agreement. Both USB modems provide backward-compatibility with Verizon Wireless’ 3G network. If laptop users travel outside of a 4G LTE coverage area, they will automatically stay connected on the company’s 3G network.

It’s interesting to note there’s not even really an entry level LTE plan (say $25 for a gig of use) after literally dozens of Verizon executive comments claiming usage-based pricing was going to be the future. We’ll assume this pricing may evolve as the company begins offering LTE smartphones, which Verizon today announced will arrive sometime in “mid-2011″. Verizon also again today confirmed these devices will initially use 3G/CDMA for voice until LTE voice standards are hashed out. As an added aside: the service will only support MS Windows based PC’s at launch.

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Verizon finally aired their first ever commercial for their upcoming LTE network during last night’s Sunday Night Football. The Stephen Spielberg-esque ad ad features a lightning bolt delivered by snail mail, and confirms rumors that the network is “coming in December.” As previously noted, Verizon’s initial launch next month will be fairly significant, the 5-12 Mbps service covering 38 markets (roughly one third of the population) and 60 airports right out of the gate. We’re still waiting on Verizon to reveal their pricing for the speedier service, which as of last week the company still claimed they weren’t sure of.

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Buried in what occasionally reads like a love letter to Verizon CEO Ivan Seidenberg, Fortune is the latest to proclaim that the iPhone is headed for Verizon, despite Seidenberg himself all but shooting down the possibility last month.

That so many Americans covet Verizon iPhones “is partly a testament to the efforts of Ivan Seidenberg,” insists Fortune, though in really it’s mostly a “testament” to AT&T’s inability to complete phone calls in the New York and San Francisco markets. Between blowing kisses, Fortune reconstitutes rumors already seen elsewhere, such as Apple and Verizon fighting over control, and the fact this first Verizon iPhone will be CDMA, not LTE:

…people familiar with its development say it is a fait accompli. Verizon, sources say, will sell its own version of the iPhone 4, which will work on Verizon’s CDMA-based 3G network. Unfortunately for globe trotters, the first version of the phone likely won’t be built to work outside the U.S. it probably won’t carry a special chip that can turn it into a “world phone.” However, it may have some of the features on the iPad distributed in Verizon’s stores, like live TV for customers of the FiOS cable service.

Apple supposedly won’t even consider an LTE iPhone until 2012, preferring to wait until initial headaches and battery life issues can be negotiated into the iPhone’s traditionally slim form factor.

That may not be a bad thing for say unhappy AT&T iPhone customers that just signed a long term contract to get the iPhone 4. Given AT&T’s new $325 ETFs are pro-rated (slowly reduced each month), waiting for an LTE Verizon iPhone would make more financial sense; assuming you’re an AT&T iPhone customer that can actually make phone calls with the device.

In other words, if Verizon does get the iPhone, expect the subscriber hit AT&T takes to be staggered and more pronounced in 2012, and expect AT&T to repeatedly proclaim the loss as “no big deal” during 2011. AT&T’s remaining confident in the face of non-exclusivity in part due to their new higher ETF, but also because they believe many subscribers are on family and business plans and can’t (or won’t) defect.

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According to the latest J.D. Power and Associates Residential Television Service Satisfaction study, consumers are “notably less satisfied” with TV services than last year. That isn’t surprising given the relentless and often bi-annual rate hikes imposed by satellite, telcoTV and cable TV providers, which resulted in new and notable cord cutting last quarter. According to the study, Customer satisfaction with the cost of television service averaged 541 out of 1,000 in 2010, down 14 points from 555 in 2009.

The study measured satisfaction with TV services in four regions (East, West, North Central, South). AT&T U-Verse and Verizon FiOS ranked highest among TV providers, though the cable companies ironically rank higher on residential phone service.

Overall, customers continue to be annoyed with price hikes, which are courtesy of the endless dance of death between broadcasters (who continually hike programming costs) and TV operators (who pass these costs on to consumers along side hikes and new fees of their own). Consumer annoyance has been amplified by a sour economy, and mirroring recent concerns from the investment sector, JD Power notes that these hikes can’t continue indefinitely:

“It’s apparent…that TV providers must better communicate their price-value proposition, as customers are increasingly voicing irritation with the amount of their monthly bill. Seventy-four percent of customers who say they definitely or probably will change TV providers in the next year cite price as a major reason to switch.”

Consumers (for now) continue to pay for services despite these hikes, which is obviously good news for TV providers. But despite changing state laws to ease telcoTV entry into the sector (many times at the cost of consumer protections, local rights, and increased deployment), TV price reductions promised by lobbyists never arrived. Carriers instead engage in non-price competition, and focus on creating the illusion of value through added services that are often half-assed (see AT&T’s Hulu clone, for example).

The TV sector is begging for disruption and the entry of inexpensive, simple, a la carte Internet video options. There’s an endless flood of articles insisting that Internet video isn’t a threat, but that’s largely thanks to the fact that broadcasters are constricting TV streaming licensing for fear of cannibalizing TV revenues, resulting in limited alternatives for consumers. If these endless carriage disputes continue, cable operators may eventually balk, and broadcasters may open their eyes to alternative delivery opportunities.

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After the Verizon data overcharge, how AT&T is still the only place you can get an Apple iPhone without having to do something illegal, among other complaints, observations and gripes with cellphone carriers in the United States they all suck in one way or another, it seems like U.S. Cellular is trying to reverse that with their recently unveiled “The Belief Project”…

Some highlights of The Belief Project:

• We’re the first carrier to eliminate the need for post-pay customers to continuously sign contracts. With the new “One and Done” contract policy, new customers who fulfill an initial two-year commitment with U.S. Cellular never have to sign a contract again.
• Loyal customers have become accustomed to new customers getting the best deals. At U.S. Cellular, all of our post-pay customers can earn Belief Points simply for being a customer. The points can be redeemed for things they actually want: phone upgrades, additional lines, accessories, ringtones and forgiveness of overage charges.
• Customers are automatically enrolled and start receiving points when they sign up for any U.S. Cellular Belief Plan. There are no fees, blackout dates or expiration, and points are easy to redeem in-store, online or by calling customer service. Belief Points are earned based on a customer’s monthly plan, the number of lines on the account, and how long they’ve been a customer.

As you can see, we believe we are differentiating ourselves in an industry with little differentiation amongst customers.

With reward points being given to users that actively decide, not being forced to stay due to contracts or other incentives that actually cost people more than just outright buying an unlocked phone – number portability does not equate to freedom – this sounds like a seriously great step in the right direction.

Way to go U.S. Cellular. Let’s hope that other companies take note and try to actually reward their customers instead of making them feel like they’re locked into a contract that serves only the company and not the person. Take a look around and see if you’re in their coverage areas.

[ Links: The Belief Project ]

As part of their franchise agreement with New York City, Verizon was required to deploy FiOS services to every home in New York City by 2014 though the agreement allows Verizon lawyers to wiggle over, under and around those obligations should Verizon not see the kind of service uptake they’d like. According to Verizon, they’ve now passed about 1.8 million homes and businesses, or 58% of the roughly 3.1 million households in New York City.

Verizon says they’re ahead of their agreement to pass 54% of NYC premises by the end of this year. Of course while Verizon is moving forward with FiOS deployment in several cities where they’ve signed franchise agreements, they’ve frozen overall FiOS expansion elsewhere.

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Last May Wal-Mart launched “Common Cents Mobile,” one of many rebranded Sprint prepaid wireless services. Wal-mart also sells Straight Talk service, which runs on the Verizon and AT&T networks. Apparently to ensure T-Mobile doesn’t feel left out, Wal-mart’s now teaming with T-Mobile to launch a Wal-mart branded postpaid wireless phone service subbed “Wal-Mart Family Mobile.”

According to a merchandising VP at Wal-Mart, they’re launching a postpaid service, in part because there’s “a perception among customers that prepaid service doesn’t offer access to the best phones or the best network quality.”

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Verizon has made no secret of their interest in expanding beyond broadband and eventually becoming a company that offers you, well, everything including home automation and security services. To that end, Verizon this week has invested in home automation outfit 4Home, and in January at CES, Verizon and 4Home will be showing off home automation services that will work over Verizon’s upcoming LTE wireless broadband network.

Of course maybe before Verizon gets into smart refrigerators they can offer FiOS users that 802.11N-capable router they told us was supposed to arrive last month? We’ve asked for an update on that, but in the mean time you can check out some of what 4Home offers here.

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Frontier Communications, fresh off their $8.5 billion acquisition of millions of Verizon DSL and landline customers, has been downplaying the fact the company isn’t offering speeds that can successfully compete with cable in most markets. While Frontier CEO Maggie Wilderotter has been promising these customers a “fast future,” the company really isn’t in a financial or technical position to actually offer it. In an interview with the Oregonian, Wilderotter continues along this vein, insisting the company offers fiber to the home “all across the country”:

Oregonian: Frontier wasn’t heavily in this kind of cable TV, super-fast Internet business before the transaction. Why did you want these markets?

Wilderotter: Oh, nonsense. We deploy fiber to the home all across the country. We don’t call it FiOS. We call it high-speed Internet. For our customers, the technology doesn’t matter. What matters is access, speed and capacity.

Which sounds great, except for the fact that it’s not true. Frontier doesn’t offer fiber to the home anywhere, outside of the 100,000 or so Verizon FiOS customers they acquired in the Pacific Northwest. In fact, the fastest speed Frontier’s capable of offering is 10 Mbps, though many users are closer to 1.5 Mbps. Frontier could follow in Verizon’s footsteps and offer bonded ADSL2+ to some users, but those speeds are distance-constrained, and for many users will top out at 15 Mbps downstream.

In other words, the technology very much matters, and pretending that DSL and fiber are the same thing (which for whatever reason the Oregonian doesn’t feel the need to challenge) is downright bizarre. That said, at least somebody wants to serve these previously neglected Verizon customers, and Wilderotter proceeds to insist they won’t be continually hiking prices on users like Verizon or Comcast. Of course if your network upgrades are going to be of the make believe variety, that’s an easier promise to keep.

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Verizon’s “exclusive” agreement with Skype has created a Skype client that has a number of quirky restrictions including the fact that it eats your wireless minutes in some instances (conveniently keeping voice minutes relevant in the age of smartphone mobile VoIP).

But Skype’s specialized Verizon application also had a fairly nasty bug: Android users who used the Skype app over 3G couldn’t turn on Wi-Fi at all.

In other words, they couldn’t use Skype on 3G and browse the Internet via Wi-Fi. At the time, Verizon gave a roundabout explanation, admitting there was a bug, but also insisting that CALEA wiretap restrictions were partially to blame for the problem, as the Verizon-specific app runs over Verizon’s traditional voice network. Whatever the cause, Verizon and Skype have apparently figured it out, and Skype for Verizon smartphones now works with Wi-Fi turned on.

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HBO hasn’t exactly warmed to the broadband-driven Internet video revolution. Over the years they’ve been accused of poisoning copies of their TV shows available for download via BitTorrent, petitioned the FCC to make DVR recording of subscription video-on demand illegal, and even hinted at possibly suing Slingbox for allowing the re-transmission of their content.

Now as Netflix streaming gains in popularity, HBO Co-President Eric Kessler tells Bloomberg the company has no intention of letting Netflix gain access to HBO content:

“There is value in exclusivity,” Kessler said in an interview. Consumers “are willing to pay a premium for high quality, exclusive content,” he said. HBO’s stand prevents Los Gatos, California-based Netflix from gaining online access to titles from all of the major studios. Netflix members can see films from Walt Disney Co. and Sony Pictures Entertainment online through a deal between the subscription movie service and Liberty Media Corp.’s Starz channel, which has separate accords with both studios.

While that’s certainly HBO’s right, it’s possible they could stand to make more money collaborating with Netflix than competing with them. HBO’s of course protecting their new broadband-video service HBO Go. HBO Go is only available to customers whose ISP or cable provider have struck an arrangement with the company and right now, only Comcast and Verizon have.

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