Apple locked into AT&T exclusivity until 2010?
updated 04:35 pm EDT, Fri August 1, 2008
Apple Lock to ATT in 2010
Apple is bound to its exclusivity deal with AT&T until at least 2010, sources have allegedly told USA Today. The newspaper asserts that AT&T agreed to the large-scale subsidies on the iPhone 3G's pricing in exchange for a one-year extension on the provider's sole rights for the device line in the US, pushing it back from its original 2009 date. The extension is crucial for AT&T, which is the leader in an increasingly saturated market and sees the iPhone as a tool to convert customers from other networks.
The news on Friday would represent the first more definite timeframe attached to the agreement.
Under the original terms, Apple would have been free to sell the iPhone through T-Mobile USA next year as well as to consider developing a CDMA-based version that could be used with Sprint, Verizon and other predominantly North American carriers. Some potential customers have either refused to buy the iPhone or else resorted to unlocking first-generation models due to AT&T's coverage limitations or support.
Neither Apple nor AT&T has ever disclosed the actual expiry date of the exclusivity deal, though some had speculated the term could be as long as five years from the iPhone's initial launch. AT&T chief Randall Stephenson has only said that he and AT&T are "very happy" with the terms of the deal.
The new reported end date is potentially ideal for Apple given network deployments in the US. At present, the iPhone 3G would lose 3G access on T-Mobile's network, which has only just begun deploying any form of 3G cellular access and is currently limited to New York City. Verizon and its acquisition target Alltel will also both launch 4G service in earnest sometime in 2010 and will use Long Term Evolution as their standard, a format that will also be shared with AT&T and allow a future 4G-capable iPhone to run on either network.












locking in consumers
08/01, 05:00pm (1 reply) reply
Too bad AT&T couldn't sway customers to it's network via excellent customer service; a friendly, knowledgeable sales staff; non-predatory business practices and a product people really want to use...
Guest
Fresh-Faced Recruit
Joined: Nov 1999
Re: locking in consumers
08/01, 05:07pm reply
Not to defend ATT (I have TMobile and have been a satisfied customer for quite some time), but which carrier out there in the US doesn't do the same?
csimon2
Junior Member
Joined: Aug 2000
AT&T
08/01, 05:25pm reply
If AT&T is half as bad as Cingular then I never want to have anything to do with them again. Cingular service sucked in my area. I've had Tmobile for several years now and have great service no matter what city I am in.
scotte75ky
Fresh-Faced Recruit
Joined: Jan 2008
no AT&T for me
08/01, 06:19pm reply
I switched from AT&T to Verizon Wireless a while ago because I got too many dropped calls. Thanks but no AT&T for me.
pt123
Fresh-Faced Recruit
Joined: Sep 2007
And still...
08/01, 07:57pm (1 reply) reply
the iPhone is selling like hot cakes in spite of the at&t haters posting here and will easily meet the 10 miilion mark this year. Well boys, press your noses to the glass and dream. No iPhone for you!
lkrupp
Fresh-Faced Recruit
Joined: May 2001
AT&T
08/01, 07:57pm reply
I had Verizon for probably 10 years. Loved the coverage but always hated the phones.
I've had AT&T for 7 months now and I have a cool iPhone, but the coverage is so unbelievably bad I can't believe they can spew that "more bars in more places" marketing bunch of lies with a straight face.
gskibum3
Fresh-Faced Recruit
Joined: Nov 2006
Knock on wood
08/01, 07:58pm reply
...but we switched from T-Mobile (after 6 years) to AT&T and the service has been stellar here in Los Angeles. Maybe I'm the only one but I haven't anything bad to say about AT&T (yet!). I was reluctant at first but finally capitulated when my wife wanted the 3G.
JuanGuapo
Fresh-Faced Recruit
Joined: Jan 2008
AT&T
08/01, 08:19pm reply
I use the iTouch for web/data & Verizon for cell (10 years) due to coverage (Central Calif.)
Cingular(AT&T) have 'no bars' in the neighborhood. No 3G for quite a distance. Also, 'real-world', if you travel in the US, away from major cities, GSM is poor and almost non-existent. Too bad about the poor GSM, and/or the CDMA iPhone delay.
WalterC
Fresh-Faced Recruit
Joined: Jul 2008
No Sale
08/01, 08:26pm reply
As long as I am forced to use a single company I will not purchase an iPhone. They don't care, but that is one less customer. Take away my choice, take away my business.
lamewing
Forum Regular
Joined: Aug 2004
Must Escape the Deathstar
08/01, 11:24pm (1 reply) reply
I am curious, though, what happens on June 29, 2009, when I and about 1,000,000 other people are no longer contractually enslaved to AT&T's horrific reception and customer service. Will I be able to switch to another carrier? And if so, will I still be able to use visual voicemail and all the other iPhone features? (Gen1 iPhone)
candez
Fresh-Faced Recruit
Joined: Jul 2008