Verizon CEO Ivan Seidenberg has sent the strongest hints yet that Verizon’s interest in going the extra mile to acquire the Apple iPhone is waning, and the company is increasingly unlikely to make major concessions to carry it.

Seidenberg’s comments came during last week’s Goldman Sachs Communacopia Conference.

Verizon’s position as America’s leading wireless carrier does not appear to be threatened by AT&T’s exclusive American agreement with Apple.  While AT&T customers desperate for an alternative carrier may be fueling “wishful thinking”-rumors that Verizon is about the obtain the rights to sell the phone, there is no evidence any deal with Apple is imminent.

In fact, Seidenberg’s remarks were clearly interpreted by Wall Street that Verizon won’t jump through Apple’s hoops to win an agreement, especially as Android-based phones are nipping at the iPhone’s heels:

“We have worked hard at building a franchise out of Droid, which proves that if there is an acceptable alternative to the iPhone, and a great network, and a great distribution channel, the market will go there for it. We don’t feel like we have an iPhone deficit. We would love to carry it when we get there, but we have to earn it. We have to show all the suppliers that we have equal treatment, and we have a network for people to put all of their equipment on.  […]Hopefully, at some point Apple will get with the program.”

Apple’s reputation and market power are also on the line, and many analysts think the company’s terms and exclusive agreements are now doing more harm than good.  Earlier this month, Bernstein Research analysts Pierre Ferragu and Toni Sacconaghi concluded Apple must make the iPhone available to all carriers if it wants to compete with Android.

Google has tripled its growth to 200,000 activations per day in just seven months, and with Android being the dominant smartphone technology on major carriers like Verizon, O2 (UK), Vodafone (Germany), China Mobile and NTTDoCoMo (Japan), Android’s total installed base is expected to overtake the Apple iPhone within 15 months.

Apple’s reputation has also suffered from a year of missteps, ranging from the loss of a beta iPhone, “AntennaGate,” occasional outbursts from CEO Steve Jobs, and growing revelations of a new firmware issue that is dramatically stunting battery life on many iPhone and iPod units.

Fashionably late, Verizon Wireless intends to change its wireless smartphone data plans to end unlimited usage in the next four to six months, according to Verizon CEO Ivan Seidenberg.

Seidenberg said Verizon Wireless’s new data plans, which he says will probably arrive in time for the holiday shopping season, will differ from AT&T’s but he refused to elaborate.

“We’re not sure we agree yet with how they valued the data,” he said at an investor conference Thursday.

The change has been widely anticipated in the wireless industry, as Verizon Wireless and AT&T, the nation’s largest and second largest carriers, charge nearly identical pricing for their wireless services.  Both carriers formerly charged smartphone customers $29.99 per month for unlimited wireless usage.  AT&T eliminated unlimited usage with two new plans unveiled in June with the introduction of the latest Apple iPhone.  One charges customers $15 a month for up to 200Mb of usage, and another charges $25 for up to 2GB of usage per month.  Customers exceeding the limits pay $15 for an additional 200Mb or $10 per gigabyte in additional fees.

Critics charge Verizon’s decision to slap usage limits and overlimit fees on customers is just another attempt to gouge wireless customers, made possible by the two providers’ market power.

Wall Street Journal reader Candace Kalish commented on the new limited usage attitude Verizon seeks to embrace:

What the carriers want is a tiered system with outrageous penalties for slight overages. The banks, car renters, airlines, and credit card issuers do very well with this. It is the most profitable business model since it requires careful underuse or disproportionate costs on the part of their customers. This is why they require people to guess their usage and impose punitive marginal costs on single byte transfers.

[…]I think the carriers’ actions indicate a much greater concern with short term profits rather than long term innovation and even great profitability.

[…]Since carriers impose rates on a take it or leave it basis, I don’t see rates improving much in the near future. I’ll stick with my ancient $30 a month plan and a cheap flip phone with an iPod Touch. When competition kicks in, possibly in the next 10 to 20 years, and they offer more for my money, I’ll consider a smarter phone. Right now the market is still what they used to call a natural monopoly, and the pricing structure proves it.

Seidenberg

Seidenberg made it clear the new Internet Overcharging schemes will arrive in time for the company’s introduction of its fourth generation data network – Long-Term Evolution, more commonly known as LTE.  Earlier, Verizon hinted to its investors it intends to market its LTE service at a premium price, anticipating customers will be willing to pay a higher price for faster service.  This, despite the fact LTE will deliver Verizon dramatically increased capacity at a lower overall cost, in terms of bang for the spectrum buck.

Company officials are still considering whether LTE pricing will carry a per megabyte charge with little or no usage allowance or a more common usage allowance plan with overlimit fees.  Either way, few expect wireless will offer an effective competing alternative to wired broadband service, unless one’s monthly usage is below 5GB.  Above that amount, overlimit fees could quickly accumulate, leaving customers with wireless bill shock.

Dave Burstein, publisher of DSL Prime, commented back in January about wireless data pricing:

Charging at the this level, if the other wireless carriers go along, is a blatant attempt to protect their other services. [A government agency] filing points out the likely reason: “The Commission also must keep in mind that the two largest US wireless providers, Verizon and AT&T, also offer wireline services in major portions of the country, raising the question of whether these providers will market these services as replacements for wireline services.”

If his prices carry the day, the […] broadband plan will accomplish very little. The [plan] implicitly counts on wireless for competition, because new wired networks are highly unlikely and their plan doesn’t change that. Wireless voice in the U.S. is a weak cartel, data a relatively strong cartel. [Verizon’s] signals may inspire the other carriers to also drastically cut the basic data allowance.  Or not.

If there’s a significant cut in the 5GB wireless allowance, then the broadband plan needs a huge redirection to measures that work [in] a telco-cable duopoly. That’s so tough I don’t know if Washington can do that.

Thanks to our regular reader Bones for sending word.

Big Apple Day

As part of franchise negotiations between Cablevision, Time Warner Cable, and New York City officials, an agreement was reached to spend $10 million to provide “free Wi-Fi” service in some 32 parks across the metropolitan area.

But “free” access comes to those who can accomplish their wireless usage in ten-minutes, because that’s all the “free” use the two cable giants will allow non-customers on their wireless networks.  Specifically, non-cable customers can access the new Wi-Fi at no charge for up to three 10-minute sessions per month.  If you want more than 30 minutes a month of access, it will cost you $0.99 a day.

Broadband advocates in New York accused the Bloomberg Administration of selling out public spaces to private companies during the city’s closed-door negotiations with the two cable operators.

The NY Daily News:

Sprint CEO Dan Hesse told a crowd of Wall Street investors the wireless provider could drop unlimited wireless pricing if the costs to deliver it begin to upset shareholders.

“We are watching very closely,” Hesse said during a Goldman Sachs-sponsored conference.

“Clearly, I’m not ruling out metered [price packages],” he said. “But customers value simplicity.”

While Hesse stressed the company had no immediate plans to drop its “Simply Everything” plans, it does acknowledge a small percentage of its customers are using enough of Sprint’s network to cost the company more than it earns from its heavy users.

But Hesse argued the marketing benefits of unlimited service may have brought the number three wireless carrier more business (and revenue) than it loses.  Sprint has been trying to recapture a stronger position in the wireless market lost after years of notoriously poor customer service and reduced coverage areas.

Most customers who left Sprint switched to AT&T or Verizon Wireless.  Both of its larger competitors have been seeking to impose more usage limits on its customers, especially for data.  Sprint hopes to win some of them back, but Hesse admits the company still has a long way to go to improve customer numbers.