Verizon Wireless revealed this week that it had been approached by Apple roughly two years ago for a partnership deal with the iPhone but later rejected Apple's proposal because Apple's terms were not mutually beneficial. Apple's international phone uses GSM mobile technology, which Cingular supports but Verizon Wireless does not (Verizon phones use CDMA technology). It logically follows that Apple may have been at the time considering CDMA, which some argue gives better reception and signal strength than GSM.
So what exactly made Verizon hesitate? Reports indicate that Apple wanted to receive a percentage of subscription fees from Verizon customers who purchased the iPhone. Apple also wanted complete control over how the iPhone was developed and how it was launched. Verizon wasn't very happy about this idea: "We said no. We have nothing bad to say about the Apple iPhone. We just couldn't reach a deal that was mutually beneficial," said Verizon Wireless vice president Jim Gerace. Mark Siegel from Cingular had a contrasting view: "We think this is a win for Apple, and it is a win for Cingular."
Apple's iPhone will launch in July from Cingular with a two-year contract, priced at $499 for the 4GB version and $599 for the 8GB version.