It looks like Cingular wasn't the first choice for the new iPhone. They approached Verizon nearly 2 years ago for them to carry their phone. Verizon ultimately rejected the deal saying what Apple wanted wasn't good for Verizon or for its customers.

"The problem? While Apple and Verizon stores would have it, Wal-Mart, Best Buy and other Verizon distributors could have been left out. 'That would have put our own distribution partners at a disadvantage' to Apple and Verizon stores, Gerace said.

Customer care was another hitch: If an iPhone went haywire, Apple wanted sole discretion over whether to replace or repair the phone. 'They would have been stepping in between us and our customers to the point where we would have almost had to take a back seat ... on hardware and service support,' Gerace says."

I can just about guarantee that the terms they brought to Cingular were almost identical to those they presented to Verizon.

Source: http://www.usatoday.com/tech/news/2007-01-28-verizon-iphone_x.htm