Verizon Passed on Apple’s Terms for iPhone Contract

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Date: Monday, January 29th, 2007, 10:56
Category: News

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An article on USA Today’s web site discusses how Apple courted cellular telephone provider Verizon Wireless, currently the number two carrier in the United States almost two years ago.
The cell phone provider reportedly took umbrage at Apple’s demands of a percentage of the iPhone’s monthly service subscription fees as well as where and how the iPhone could be sold.
Negotiations failed between the two parties and Apple wound up turning to Cingular, which is owned by AT&T, the brand name switching as well.
Click the jump for the full story…


vzlogo.jpg
An article on USA Today’s web site discusses how Apple courted cellular telephone provider Verizon Wireless, currently the number two carrier in the United States almost two years ago.
The cell phone provider reportedly took umbrage at Apple’s demands of a percentage of the iPhone’s monthly service subscription fees as well as where and how the iPhone could be sold.
Negotiations failed between the two parties and Apple wound up turning to Cingular, which is owned by AT&T, the brand name switching as well.
According to the article, Apple’s control over the iPhone’s distribution would have left it out of larger chains such as Wal-Mart and Best Buy and left Apple in control of customer care; if an iPhone malfunctioned, Apple would have the final say as to whether or not to repair or replace the device.
Sources close to Apple’s deal with Cingular weren’t able to discuss the financial details of the contract, but say that the exclusivity contract lasts for five years and that this applies to the United States only. Such a deal leaves Apple carte blanche to market the iPhone under different terms to international markets.
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