Verizon: no iPhone, no problem

Despite the diluting effect, though, Verizon still managed to grow data ARPU by 30 cents quarter over quarter. If pro forma calculations are added to the mix, Verizon managed to grow data ARPU across both Alltel and Verizon's traditional subscriber bases by 65 cents, a 4.8% increase. Meanwhile AT&T's fast-paced growth in mobile data services has slowed down. Despite activating 1.6 million iPhones in the quarter, its post-paid data ARPU increased just 1% to $16.48 and its overall data ARPU actually declined slightly quarter-over-quarter to $13.64 a month.

Verizon is now looking to the former Alltel's much lower data penetration as an opportunity for growth, increasing both the data spend per subscriber and the number of data subscriptions in Alltel's former footprint. Verizon reported that 58% of data revenue now comes from non-messaging services, marking the first time that SMS hasn't been the dominant data service on Verizon's network. And while the large majority of Verizon's customers send text messages, data plan users are still, by far, the minority.

"We believe, going forward, there is more penetration to be mined in data devices," Strigl said. "I think we have a good data upside."

Though Verizon is having no trouble attracting subscribers without the iPhone, rumors persist that Verizon is trying to coax Apple away from its exclusive deal with AT&T.  A report in USA Today cited unnamed sources saying Verizon and Apple are in discussions that could lead to the launch of a CDMA iPhone next year. Such a deal would require Apple to build a new version of the device targeted at CDMA 3G network operators in the America, though there is a possibility that Apple could build a new iPhone for Verizon's long-term evolution (LTE) 4G network, which is scheduled to launch commercially next year. It's questionable, though, whether dual-mode CDMA-LTE chipsets will be available from Qualcomm next year. During today's earnings call, Verizon declined to comment specifically on any possible negotiations between it and Apple, saying only it was open to discussions with any supplier.

Julien Blin, principal analyst and chief executive officer of JBBresearch, said there is definite validity to Verizon's claims that it can drive data growth through a diverse device portfolio rather than being dependent on a single device—its numbers prove it—but Blin said he has little doubt Verizon would jump at the opportunity to offer the iPhone on its network.

"In our opinion, there is no doubt in our mind that Verizon is looking at the iPhone opportunity as it could help the carrier sustain its lead in terms of wireless data services and total subscriber adds," Blin said. "That's just what Verizon customers want."

If Verizon were to get access to the iPhone, it would likely target the growing number of disaffected AT&T iPhone customers complaining about the congestion on the AT&T 3G network. Verizon was the first US operator to launch 3G services and has since built EV-DO nationwide, while AT&T is still filling gaps in its high-speed packet access (HSPA) footprint. AT&T, however, is taking steps to address those capacity issues—many of which were caused by the rapid introduction of 6 million iPhones in 9 months. AT&T is upgrading to the latest version of HSPA, doubling peak network capacity to 7.2 Mb/s. The operator is also deploying additional HSPA carriers at high-demand cellsites as well as deploying an HSPA overlay at 850 MHz. This year, AT&T plans to deploy evolved HSPA, or HSPA+, which will triple 3G capacity, as well as begin trials of its future LTE network next year.