Verizon Said No To iPhone

In the wake of the iPhone announcement, and Cingular’s exclusive contract with Apple, word has come out that Verizon Wireless said no to Apple’s demands nearly two years ago. The number 2 cell phone carrier in the U.S. was unable to reach a deal with the MP3 giant, due to costly terms and other demands.

Verizon Wireless vice president Jim Gerace stated that Apple wanted a percentage of monthly fees, and control over sales of the iPhone, along with control over Verizon’s customer relationships. After Verizon’s decision, Cingular was there to pick up the pieces of the deal. There’s no word on details of Cingular’s deal with Apple. ”We just couldn’t reach a deal that was mutually beneficial.” Gerace said of the failed discussions.

Verizon was most concerned over Apple’s insistence of control over customer support and the possibility of Verizon’s own distribution partners being left out of the loop. Under Apple’s terms they would have sole discretion over whether a phone would be repaired or replaced, thus undermining Verizon’s core service support. The wireless carrier would have sat back as Apple ran everything, a strategy Verizon has never undertaken with any of its phone-manufacturing partners.

According to USA Today, Cingular’s exclusive contract with Apple could run as long as five years. In the meantime Apple is free to market as they see fit in the global market. When asked about the customer service aspect of the deal Cingular spokesman, Mark Siegel, stated, ”I don’t want to leave the impression that these customers are not ours. They are.”

The iPhone will hit Cingular and Apple stores this June.