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Apple Said to Be in Talks with Verizon over iPhone

Rumors persist despite denials from Apple, AT&T

By Mark Huffman
ConsumerAffairs.com

April 27, 2009

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Apple's popular iPhone may be available to mobile phone users on the Verizon network as early as next year, according to a published report. The phone is currently only available on the AT&T network, but that exclusivity is set to expire in 2010.

After weeks of persistent rumors, Verizon and Apple are reportedly in talks about development of an iPhone that would operate on Verizon's network, according to USA Today, which quotes sources familiar with the situation. According to the report, talks began at a high level a few months ago.

AT&T has reportedly pressed Apple in recent weeks to extend its exclusive iPhone contract another year. Apple, for its part, has played it coy, telling the Wall Street Journal earlier this month "we have a great relationship with AT&T."

Offering an iPhone that would work on the Verizon network would provide consumers a greater choice. Now, those who want an iPhone must use it on AT&T, even if Verizon offers better coverage where they live.

It's already been demonstrated that the iPhone can be a huge customer draw for a cell phone company. AT&T reports it signed up 1.6 million iPhone customers in the first quarter of this year, and that 40 percent of them were new AT&T customers.

Verizon currently has 80 million wireless customers. Working out a deal with Verizon, analysts say, could provide significant growth opportunities for the iPhone.

AT&T has been the exclusive iPhone network since 2006.

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