Report states the Verizon passed on iPhone

USAToday is reporting some more details about Apple and the iPhone. They mention some interesting terms and conditions that most likely Cingular/AT&T agreed to at least in part if not completely. While previously Cingular/AT&T stated that they didn't bend, but that they made Apple bend, this report would seem to indicate otherwise.

Verizon states that Apple was looking for control of distribution and service/repair of the iPhone. This makes sense since they made and designed the phone so they want to sell and support the phone. This isn't how the cell phone business generally works, much to the annoyance of cell phone makers such as Nokia and Motorola. In general the carrier dictates full control over the phone that is made by the manufacturer. As such Verizon is righteously angered at Apple's request stating, "They 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." I guess old habits die hard.

Whats most interesting is what is mentioned least in the article. Apple wanted a cut of the monthly cell phone bill from Verizon. This would be a good incentive for Cingular/AT&T to give Apple. Given that Apple won't be letting people install VOIP, IM, iTunes as ringtones on the iPhone it sounds like they probably have received this offer (or that they are using this leaked press release to try to get it).

The final thing that is interesting in this article, is that if Apple was talking to Verizon that means that a CDMA version of the iPhone could exist. Because of the deal with Cingular (until 2009 by other reports) we probably won't see a CDMA version in the US until after that time. That is of course assuming that any clauses that allow Apple out of their Cingular/AT&T contract aren't broken.