Verizon wants the iPhone desperately but Apple at the moment are not prepared to offer it.

According to Verizon’s CEO Ivan Seidenberg, the decision is exclusively in Apple’s court.
Last year Ivan when asked how Verizon would compete with the iPhone 3G replied ‘Steve Jobs eventually will get old… I like our chances’

It has already been speculated by some as to what a Verizon iPhone may look like, and we are hoping that the Droid will show just how open they are becoming and that in the end the Verizon faithful will actually get the iPhone sometime soon in the near future. Source – theiphoneblog.com