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Verizon Flooded With Calling Suitors

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Reflections on Ice-Breaking
Is dandy
But liquor
Is quicker.
-- Ogden Nash, 1931

With that dictum in mind, I almost expect Verizon's (NYSE: VZ  ) Manhattan offices to be swimming in the hard stuff. According to reports in BusinessWeek and The Wall Street Journal, Apple (Nasdaq: AAPL  ) and Microsoft (Nasdaq: MSFT  ) are talking to the telecom giant about fancy new mobile devices, and there's lots of ice-breaking to be done here.

The Microsoft “Pink,” the supposed code name for Mr. Softy’s new mobile device, could end up in Verizon's hot little hands, bringing a Windows Mobile-based touchscreen phone to the masses. An unnamed third-party manufacturer is expected to bring Mr. Softy's Pink design to life; that could be Samsung or HTC, but Microsoft's platform is in heavy use at Motorola (NYSE: MOT  ) , too. In fact Verizon already sells Windows Mobile smartphones from all three manufacturers. The WSJ thinks that Verizon could get an exclusive distribution deal for this new device to beat back AT&T (NYSE: T  ) and its iPhone onslaught.

Of course, BW says that it's the real iPhone that might be going to Verizon. Both stories come with anonymous sources, and everything is still up in the air at this point.

That said, I believe that the “Pink” story is the real deal, for a couple of reasons:

  • Microsoft, lacking a top-notch smartphone today, has plenty of incentive to get a high-profile carrier like Verizon by its side. Sprint Nextel (NYSE: S  ) and T-Mobile are not big and beefy enough for a high-impact launch, and AT&T already has the iPhone.
  • Apple may very well be talking to the New Yorkers. But that might be a bargaining tactic for a better AT&T contract, more than it is a straight-up negotiation with Verizon. Steve Jobs & Co. are nothing if not cagey dealers.
  • No offense to BusinessWeek, of course, but the WSJ's "people familiar with the matter" have a pretty good track record. As anonymous sources go, I don't mind trusting the Journal once in a while.

Don't expect a bottle of single malt from Google (Nasdaq: GOOG  ) , though; Sprint and T-Mobile are more likely to release Android phones, because they are members of the Open Handset Alliance while Verizon isn't. But it ain't out of the question, either: Vodafone, which owns 45% of Verizon Wireless, is a member.

Anyway, Verizon should feel like the belle of the ball right now, even if some of its suitors may not have entirely honorable intentions. Whether the company ends up with a bona fide iPhone deal or simply a rival's best attempt at besting that beast, the largest network on the continent holds a lot of leverage and should get a sweet deal for a sweet phone.

The smartphone war is heating up. That's candy to all of the major players.

Further Foolishness:

Google is a Motley Fool Rule Breakers selection. Apple is a Motley Fool Stock Advisor recommendation. Microsoft and Sprint Nextel are Motley Fool Inside Value picks. Try any of our Foolish newsletters today, free for 30 days.

Fool contributor Anders Bylund owns shares in Google, but he holds no other position in any of the companies discussed here. He will miss National Poetry Month terribly when May rolls around. You can check out Anders' holdings or a concise bio if you like, and The Motley Fool is investors writing for investors.

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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 29, 2009, at 6:50 PM, Aryabod wrote:

    This is truly funny when you consider what you have left out. The WebOS by Palm is by far the superior OS and you dare even mention it in your article. Once Palm releases its Pre you are all going to understand that the raves surrounding the Pre and its innards are more than hype. All I hear is nothing but hype about Verizon this Verizon that but the facts are far different than the spin surrounding Verizon. The fact is that Verizon doesn't have 4G! The fact is that Verizon will be third tier in Smart phones when the Pre is released; Pre, iPhone and in third place Storm and Bold. Far from reality Verizon is no better than Sprint and ATT, however they do a wonderful job of marketing their Spin. Lets see if Msft, or for that matter the rest, will be able to emulate the WebOS of Palm when it enters the ring. We are only a month away before its launch and if all I am hearing is Spin then it is clear that the competition from Apple to Msft are shaking in their pants. The Pre will in itself be a form of "creative destruction" that will change the landscape of Smartphones and will represent the dawn of a new era in the wireless world.

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