Verizon Wireless and Apple in iPhone talks

Verizon Wireless is reportedly in talks with Apple to introduce a CDMA-based version of the iPhone. Citing sources familiar with the situation, USA Today reports Verizon and Apple entered "high-level" negotiations several months ago, while Apple CEO Steve Jobs was still overseeing day-to-day business at the computing giant; although Jobs is presently on a six-month leave of absence due to health concerns, the talks between the two firms have continued. If the reports prove true, the deal would herald the first iPhone optimized for CDMA networks; Verizon Wireless co-owner Vodafone sells a GSM-based version of the smartphone in Europe.

Verizon Wireless would not begin selling the iPhone until at least 2010, when AT&T's exclusive U.S. distribution rights come to an end. Most pundits expect AT&T will try to extend its current agreement with Apple for at least another year. Last week, AT&T reported its first quarter earnings, announcing [1] it activated more than 1.6 million iPhone 3G devices during the period. In addition, wireless data revenues grew 38.6 percent year-over-year to $3.2 billion, representing 27.2 percent of the operator's wireless service revenues for the quarter.

"Breaking the [iPhone] exclusivity with AT&T is a huge thing," Nielsen's head of telecom research Roger Entner tells USA Today. "That would send shivers into AT&T's stock and senior leadership."

For more on the Verizon Wireless/Apple rumors:
- read this USA Today article [2]

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