We all know by now that Cingular would be the exclusive iPhone distributor in the U.S.A. What we didn't know is that Verizon could have secured the sweet deal if certain kinks were ironed out. USA Today reported that the number two U.S. cellphone carrier passed up on the chance to be the exclusive iPhone distributor roughly two years ago.

The reason for it? It's not because they think the iPhone is ugly, its just that Apple's financial terms and demands didn't sit well with the Verizon folks.

Apparently, Apple wanted to rake in a percentage of the monthly iPhone fees. They also wanted to have a hand on how and where the priced thingamajig would be sold, also they would want control of the relationship with iPhone customers. Verizon's VP, Jim Gerace had this to say about that:

We said no. We have nothing bad to say about the Apple iPhone. We just couldn't reach a deal that was mutually beneficial.

What would happen is that Apple and Verizon stores would sell the iPhone but other Verizon distributors like Wal-Mart and Best Buy would have been left out to witter in the cold.

So when Verizon said no, Cingular was there to accept the deal with open arms. So far, the only thing that Cingular said about this scenario was that it's a win-win situation for both parties concern. However, Cingular wouldn't say if their distributors (RadioShack and Wal-Mart) would also be able to sell the iPhone come its launch in June and they also wouldn't divulge anything about their customer care plans.