Since the first generation iPhone was announced in January 2007, availability in the US market has been limited to AT&T Wireless. At some point during development, Apple contacted both AT&T and Verizon. At the time, it was AT&T that agreed to Apple’s terms. Unlike previous mobile phones, the iPhone would be different. It wouldn’t be carrier-branded or filled with what consumers call “bloatware.” At least, that was Apple’s position when it negotiated and Verizon passed on the iPhone. This worked very well for AT&T, which had exclusive rights to the iPhone for more than three years. Now comes the news that the exclusivity has ended and a Verizon iPhone is on the horizon. This will have a huge impact on both consumers and the wireless industry.

For consumers in the US, they will see positive benefits from competition between two major wireless carriers. AT&T eliminated its unlimited data plan last year, leaving customers with more expensive and restrictive plans. Verizon will reportedly offer an unlimited data plan with the iPhone. The result of competitive plans will likely mean lower costs and more services. Some iPhone customers have complained that AT&T doesn’t offer the same service as Verizon. For those in an area with less than optimal coverage, they may choose to switch to Verizon. Sure, consumers always had the option to switch wireless carriers, but they couldn’t use the iPhone on a network other than AT&T. For some, this really wasn’t any kind of choice. A large percentage of current iPhone users would choose their phone over their carrier preference.

There is a large segment of customers who currently do not own an iPhone due to carrier loyalty. Verizon is the number one wireless carrier in the US and for good reason. They offer the best coverage and call quality. With the growth of smartphones, this group has moved to the BlackBerry or Android platforms. For these current Verizon customers, their previous smartphone of choice was based on carrier and not preference. With the arrival of the Verizon iPhone, you can expect a lot of movement within Verizon, with customers jumping onto the iPhone platform.

Some experts believe that carrier loyalty has resulted in tremendous growth for platforms like Android that wouldn’t exist if the iPhone had been available on Verizon. Manufacturers like Motorola, HTC, RIM and Samsung have had a field day generating new customers. While there was competition between these manufacturers, they never had to deal with the eight hundred pound gorilla known as the iPhone. They also had the luxury of selling their phones on the largest wireless carrier in the US.

The launch of Verizon’s iPhone will have far-reaching effects on consumers, wireless service providers and cell phone manufacturers. By waiting more than three years, advertising will be at an all time high. Apple and Verizon have the most to gain from this partnership. Phone manufacturers will be forced to change their strategies. They still have a decisive advantage in having the ability to sell phones on all four major carriers. They are likely to compete on price by offering lower cost phones. Regardless of your smartphone preference, the launch of Verizon’s iPhone will likely give consumers more choice, more services and lower costs.