Verizon Rejected iPhone Deal, Prior To Cingular

Time will tell whether Verizon made a huge mistake, or was rational: Verizon Wireless passed on the chance to be the exclusive distributor of the iPhone almost two years ago, balking at Apple’s rich financial terms and other demands, this USAT story says, quoting Jim Gerace, a Verizon Wireless VP.
Among other things, Apple wanted a percentage of the monthly cellphone fees, say over how and where iPhones could be sold and control of the relationship with iPhone customers, the story says. All of these have been agreed to by Cingular, at least in parts.
The problem on distribution control? While Apple and Verizon stores would have it, Wal-Mart, Best Buy and other Verizon distributors could have been left out. “That would have put our own distribution partners at a disadvantage” to Apple and Verizon stores, Gerace said. Customer care responsibilities were also a big hitch.

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