Verizon Rejected iPhone Deal due to Apple's Terms

USA Today reports that Verizon Wireless rejected Apple's offer to carry the iPhone exclusively due to Apple's terms.

According to the article, Apple wanted "a percentage of the monthly cellphone fees, say over how and where iPhones could be sold and control of the relationship with iPhone customers."

This included limited distribution to Apple Stores and Verizon stores only, leaving Wal-Mart, Best Buy and other Verizon distributors out of the loop. Apple also reportedly insisted on "sole discretion over whether to replace or repair the phone" with regard to customer service.

Cingular reps refused to provide the details of their agreement, but according to the report, the exclusive deal is a five year contract. This is contrary to previous reports that the Cingular's exclusive contract was only through 2008.

Apple's entry of the cell phone market was predicted to shake up the existing dynamics. Indeed, Apple appears to have made unique demands of cell phone carriers.