A recent USA Today article claimed that AT&T has a five year exclusive contract with Apple for the iPhone, during which time Apple cannot make a CDMA version of the handset. In the same article, Verizon Wireless COO Denny Strigle says, "We do have a very good response in the mill. You'll see that from us in the late summer." The Street predicts that the LG Prada phone, the KE 850, is Verizon's response. A Verizon Wireless representative, however, says "We have several music devices coming" including the LG Prada, "but there are others." The Prada phone is just as pricey as the iPhone: $600 (the iPhone is expected to be $500), but Verizon Wireless could subsidize the Prada, a move AT&T has already rejected for the iPhone.

For more on the iPhone vs. Prada phone:
- read this report [1] from The Street
- check out this write-up [2] on the AT&T-iPhone five year exclusive