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Verizon: "A percentage of iPhone traffic for Apple"

A percentage of traffic profits, the right to decide how, where, when and who will repair the phone, veto the sales points. Here are the conditions required by Apple to Verizon, an American cell phone operator who had dealt with the exclusive distribution of the device without reaching the final agreement.

To reveal the details of what could be, if not in detail at least in general terms, the contract that governs the relationship between Apple and its partner Cingular, Usa Today. According to the online edition of the American newspaper, the first subscriptions were made two years ago. During the negotiations Jobs would have made very significant requests, to the point of not being considered fair for the two parties, but decidedly unbalanced in favor of the Apple.

Apple would have wanted a very tight control over the phone, deciding different aspects of its marketing. For example, the sale should only have taken place through the Verizon and Apple stores, therefore no authorized dealers. We would have excluded two important partners such as Wal-Mart and Best Buy. Apple would have made an exclusive decision on whether a phone should be repaired and who would bear the costs (whether the customer or the manufacturer). This request would have been deemed unacceptable for the reason that 'would have meant' says Jim Gerace, vice president of Verizon's wireless sector, 'put us in a secondary position, put someone else in the middle between us and our customers.'

Cingular, interviewed by the same newspaper, did not provide any confirmation to Verizon's statements (that the second American telephone operator while Cingular the first) merely saying that 'the agreement with Apple represents a success for both parties )