
AT&T has been Apple's sole carrier for the iPhone. The carrier has benefited immensely from the exclusive deal, adding seven million subscribers because of it. It has reportedly been in talks with Apple to extend the agreement, which is set to expire as early as next year.
Apple working more closely with Verizon Wireless, a combination of Verizon Communications and Vodafone, might pressure AT&T into accepting terms that are biased toward Apple's interests in a new deal. It is also worth noting that Verizon could have been the sole carrier for iPhone initially, but it objected to sharing monthly service fees and Apple's desire to choose which retailers could sell the phone.