Mr. Seidenberg [Verizon CEO] also addressed the notion of Apple Inc.'s iPhone ever coming to the Verizon Wireless network, saying it is more likely that Apple would be willing to work with the carrier under the fourth-generation, or 4G, network, which follows the same technology standard as AT&T Inc.'s 4G plans. He said Apple never seriously considered making a CDMA version of the iPhone because it didn't have as wide a distribution opportunity.
Here's quotable proof that Verizon wasn't even considered in negotiations for the iPhone. I do think T-Mobile might have been an option; as was an MVNO [Mobile Virtual Network Operator]. T-Mobile made a number of key acquisitions of smaller GSM carriers like SunCom to be visible in key cellphone markets - such as my own. I live around the Greenville SC area - the largest per capita cellphone market in the country. Until Mid 2008 - we didn't have T-Mobile anywhere in the state with the exception of a small area of the beach. It use to be just AT&T and SunCom providing GSM [sim card] service here. It's my belief that T-Mobile specifically made these acquisitions to strengthen their "phone deals" - one of those deals being specifically to be a suitor to Apple.
All the rumors that have kept saying "Verizon negotiations broke down" and "Verizon may get iPhone after all" - were COMPLETE fabrications with no attributable source. It wasn't even good speculation.
I know of dozens of contacts, including my wife and daughter that specifically switched from Verizon because of the iPhone - I'd imagine with additional features of the new iPhone coming in June 2009 - Verizon will lose a few million more subscribers.