Possible iPhone Coming To Verizon?

Verizon Communications VZ has Wells Fargo convinced that the likelihood of a CDMA/iPhone for Verizon is very likely in 1Q2011, while AT&T T may see a benefit to its margins (~100-150bps) from the removal of its exlusivity agreement with Apple AAPL, Wells Fargo reports. Wells Fargo writes "putting it in perspective, we view the coming of a CDMA iPhone as much more of a positive event for VZ than a negative one for AT&T. We assume in year 1 of the CDMA iPhone, the overall risk to AT&T's subscriber base total is less than 1.3% of its postpay base. With only 20% of its base penetrated with smartphones, VZ's largest opportunity for the iPhone device is within its own base, in our view. While VZ could see some margin compression during the initial quarters of this transition, we believe having the iPhone in its smartphone portfolio should allow for greater data ARPU growth longer term." Verizon Wireless closed yesterday at $32.09. AT&T closed yesterday at $28.54. Apple closed yesterday at $283.23.