This is great news for both Apple and Android users. This is just the sort of news Apple needs to hear to make them tired of their single-carrier approach in the US. As with many AT&T users, their lack of supporting tethering on the iPhone and the inconsistent network coverage (although when it does work their 3G is MUCH faster than Verizon's) has made me long for another carrier to be available to iPhone users who don't want to jailbreak their iPhones. However we shouldn't forget that there are two MAJOR problems with Verizon on all their phones that make me not want to switch to Verizon even if they did have the iPhone:
1. Verizon's 3G network is NOT capable of voice and data at the same time. Once you're on the phone, all data connections are closed until you hang up. Not so great when you're trying to use maps and someone calls you, or while on the phone you try to find a nearby restaurant to meet the caller. As Verizon callers know, "I'll have to check that and call you back" is not an uncommon thing to say. In an age of Bluetooth headsets being the norm, we should be able to use our phone's data channel while we're on the phone. Verizon's 3G network is very 2G in this instance (and LTE, Verizon's 4G network will fix this but launch is not until mid-2011 at least)
2. Verizon only gives their 3G data users 5GB of use before they start levying HUGE overage charges (http://www.boston.com/business/articles/2010/04/30/family_provider_far_apart_over_nearly_18000_phone_bill/). I personally have no intention of going over 5GB but I also don't want to WORRY about a limit at all. Again, very backward thinking by Verizon here, reminiscent of Compuserve and AOL charging hourly for Internet access back in the 1980s. Charge a fair price for unlimited data (I think $30 is fair but let the market decide) and then you'll have a shot at my business.
In short, I'd love to see Verizon get the iPhone but not in an exclusive deal, not with 5GB data caps, and not unless they can support data and voice at the same time on their 3G network (which has excellent coverage).