Details have emerged of the pre-launch manoeuvring over the iPhone between Apple and US network provider Verizon.

According to reports in USA Today, Verizon was in negotiations two years ago to carry the phone but felt unable to proceed because of demands made by Apple concerning how it was to be marketed. 

"We said no. We just could not reach a deal that was mutually beneficial," said Jim Gerace, a Verizon Wireless vice president.

"Apple would have been stepping in between us and our customers to the point where we would have almost had to take a back seat on hardware and service support."

Gerace revealed that Apple wanted a slice of all call charges for using the phone, and refused to let Verizon subsidiaries stock the phone. It also wanted control over any repairs carried out on the hardware.

Under the terms of the proposed deal only Verizon would have been able to sell the phone, leaving Wal-Mart, Best Buy and other Verizon distributors out in the cold.

Apple would also have handled all repairs and replacements of faulty or broken hardware, which Verizon felt was unacceptable.

In the end Cingular got exclusive rights to the phone. No details on the contract have been released, but Cingular is thought to have negotiated a five-year exclusive contract.