Verizon may pay Apple to keep iPhone off of Sprint/T-Mobile

At this point, it's assumed that Verizon will get the iPhone in 2011. With all the speculation recently, the rumors are becoming more specific as each week goes on, which means that a launch is probably coming sooner rather than later. The latest round of information suggests that Verizon may pay Apple a hefty sum to keep the iPhone off of Sprint and T-Mobile in the United States.

The rumor, according to, states that "the telecom [Verizon] is rumored to be paying Apple a hefty fee to bring the device to its network and to keep Sprint Nextel and T-Mobile USA from getting their own iPhones. Kaufman Bros. analyst Shaw Wu told investors in a note today that sources from inside Verizon claim that the company is not only accepting Apple’s terms to bring the phone to its network — it’s been rumored in the past that Apple was reticent to offer the iPhone on Verizon’s network because the iTunes and iPhone App Store would be forced to compete with Verizon’s VCast mobile storefront."

This type of engagement would represent a huge win for Apple, as it was rumored to have been initially turned down by Verizon before Apple went to AT&T when trying to sell its iPhone. If this turns out to be true, this could be a massive blow for Sprint who has been struggling to keep subscribers despite having some of the lowest prices on the market.  

Apple knows that it is in the drivers seat when it comes to negations with Verizon. Because of this, Investorplace states that Verizon gave in to Apple's demands to help make the deal possible. No date has been given, but it is widely speculated that Apple will announce the iPhone is coming to Verizon in January.

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