» Verizon Wireless Refused Chance to Sell Apple iPhoneTelecommunications Industry News

Telecom News Editorials Reports Glossary

Verizon Wireless Refused Chance to Sell Apple iPhone

7:15 am on January 30, 2007 | Category: Business, Cell Phones, Mobile Devices, Wireless

Verizon Wireless could have been the exclusive U.S. carrier of Apple’s iPhone device, but the two companies could not agree on terms, according to an executive with the New Jersey-based carrier.

Apple asked for a percentage of monthly subscription fees, as well as a significant amount of control over the relationship with iPhone customers, said Verizon vices president, Jim Gerace, in an interview with USA Today. The company also wanted sold discretion over whether a faulty handset would be repaired or replaced.

â€œThey would have been stepping in between us and our customers to the point where we would have almost had to take a back seat… on hardware and service support,â€ Gerace explained.

Apple, which has refused to comment on Gerace’s claims, ended up reaching a distribution deal with Cingular Wireless, now part of AT&T Inc., but won’t publicly disclose any of its specific terms.

The high-end music-enabled iPhone will be sold in AT&T Wireless stores beginning this June, at a per unit cost of around $500.

Telecommunications Industry News