• USA Today, Monday, April 27, 2009 11:30 AM

USA Today reports that Verizon and Apple are discussing the possible development of an iPhone for Verizon users, which would be introduced next year, after AT&T's exclusivity contract with Apple expires. AT&T has exclusive distribution rights to the iPhone in the U.S. into 2010. The move would mark the first time Apple has produced an iPhone for a CDMA wireless network, which is a different protocol from AT&T's GSM technology.

According to the report, New York-based Verizon entered into "high-level" discussions with Apple management a few months ago, when Steve Jobs was still overseeing day-to-day operations at Apple. The sources declined to be named because they weren't authorized to talk publicly. A deal would give Apple access to Verizon's 80 million customers.

The iPhone has been a huge boost to AT&T, which is why many analysts believe the telecom giant is trying to persuade Apple to extend its exclusivity contract for another year, at least. If Verizon succeeds, it would be a huge loss for AT&T. As Roger Entner, head of telecom research for Nielsen, says, "Breaking the (iPhone) exclusivity with AT&T is a huge thing. That would send shivers into AT&T's stock and senior leadership." He adds that it would be a huge win for consumers.

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