1. You Can't Talk and Surf
Beyond competitive claims over which is speedier or more reliable, what really separates AT&T and Verizon is the technology used by their networks. AT&T utilizes a format known as GSM, whereas Verizon's network runs on CDMA. The difference results in a few remarkable differences in user experience, one of which is that you can't transfer service by simply popping out your SIM card -- CDMA devices don't use SIM cards -- and the other is that CDMA networks cannot access data while making voice calls.
If you're familiar with AT&T's versions of the iPhone, the ability to surf the web, check email, or even download music while on a phone call has been a standard feature since day one. This is not the case for the Verizon iPhone 4.
It seems the loss of this ability is simply a tradeoff AT&T or other GSM network converts will simply have to deal with.
2. It Can Serve as a Mobile Hotspot
While this morning's press conference was light on details outside of the release date for the new Verizon-enabled iPhone 4, it was revealed that the device will also support mobile hotspot technology, a first for iPhone devices.
If you're unfamiliar, mobile hotspots allow users to turn incoming wireless connections into usable Wi-Fi for up to five different devices, such as laptops, game consoles, and more.
Specific information regarding the iPhone 4's mobile hotspot function was not released, though reports from Engadget and others suggest that the feature is implemented via iOS 4.2.5 and could be released via a software update for AT&T devices as well.
3. It Isn't Verizon-Exclusive
While Verizon has certainly been the most frequently demanded carrier for iPhone support, it isn't taking on any exclusivity arrangements over other providers. During today's press conference, Apple COO Tim Cook stated that Verizon's deal with Apple is a multi-year, non-exclusive contract.
In other words, it could be open season for new iPhone carriers. While we expect Verizon and AT&T to remain the primary carriers of the iPhone for the better part of 2011, or perhaps the rest of the year, it is possible that T-Mobile and Sprint could get in on the action at some point. Despite Sprint's heavy Android focus, multi-carrier support means big money for all parties concerned.
4. It Isn't 4G
In the weeks preceding today's event, rumors began to circulate that the Verizon iPhone 4 would be compatible with the company's 4G LTE network. This is not the case. While it is entirely possible that the iPhone 5 will support next generation wireless connectivity, the current iteration being offered by Verizon will not.
5. It'll Be Outdated in Six Months
Every year for the last four years, Apple has introduced a new iPhone in June or July, and this year will be no exception, so prospective Verizon subscribers beware. If you're going to jump ship from your current provider for the Verizon iPhone 4, know that you'll be the proud owner of a new 2-year contract and an outdated smartphone in six months or less. While that may not be a problem for some, if you want to buy the latest iPhone when it comes out later this year, it is going to cost you.
Picking up the iPhone 4 on Verizon will require a new or extended 2-year contract, or subscribers to pay the full hardware price of $399 and $499 for the 16GB and 32GB variations. In most cases, consumers will opt for the 2-year contract instead of paying top dollar for the hardware. Under the terms of Verizon's upgrade policies, most customers can upgrade to a new device after a year and reap the benefits of reduced hardware costs, but as a result will enroll in another 2-year service agreement. But if you are not eligible for an upgrade or a new subscriber when the new device is introduced, you're going to have to pay top-dollar for it.
Long story short: if you're going to pick up a Verizon iPhone 4 on February 10 with a 2-year contract, be prepared to pay the full retail price for the new iPhone in June or July.
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