
Originally Posted by
ggore
There are risks to the regional participants, but I'm sure there are some compensatory revenues for them as well, that we just don't know about. An example would be someone like me, an iPhone user, who wants to use one in this area. There will only be one source for an LTE iPhone, that being Verizon, as Pioneer doesn't carry the device. But Pioneer gets no revenue from my buying an iPhoneLTE from Verizon. There is roaming revenue but none from sales of the phones.
Pioneer is the one who built the LTE system, so having people purchase phones from Verizon instead of them to use in this area would be a financial blow to them, so there has to be some provision in the program to compensate for that loss in revenue. It also remains to be seen what LTE phones Pioneer will have on offer. Normally, all the latest/greatest phones are exclusive to AT&T and Verizon, which is also a disincentive to purchase from Pioneer. There are lots of little gotchas in the program, but I'm sure there are provisions that we don't know about that address these problems.
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