AT&T seeks to extend iPhone exclusivity contract

By on April 15, 2009, 4:43 AM
AT&T is reportedly attempting to extend their iPhone pact with Apple for the second time in eight months. Initially having a deal which labeled them as the exclusive carrier of the iPhone until 2008, AT&T sought after and obtained a new deal in August 2008 which extended the partnership through the end of this year, and now they are at it again. This time, they’re interested in dragging the agreement out until 2011, preventing Apple from selling the hugely popular smartphone through other carriers.

Although this might cause one to question Apple’s strategy at face value; it’s not as though they’re making out poorly in the situation, having sold 17 million iPhones since its debut. Also, as a part of their last agreement, AT&T agreed to allow iPhone 3G subsidies which have totaled as much as $1.3 billion to date, in exchange for their current 2010 expiration.

Both companies are currently declining comments, but hopefully more information will become available in the coming days.

User Comments: 2

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TD_Baker said:
I hope they don't continue this monopolistic exclusivity as this will harm competition (what competition really) and charge outrageous data plans because you have no choice if you want to use their phone. I have been waiting until it's available through other domestic carriers besides AT&T (i.e. Verizon, T-Mobile, Sprint, Virgin, etc...) and to continue to exclusivity will only show how greedy these companies are charging an arm and a leg to use there product/services...I hope the attorney general gets involved if this continues indefinitely...[Edited by TD_Baker on 2009-04-15 16:40:03][Edited by TD_Baker on 2009-04-15 16:41:01]
DarkCobra said:
TD_Baker has it right. At this point Apple would be wise to break the exclusivity with AT&T. It is AT&T's chronic 3G speed problems that have landed both AT&T and Apple in court several times now to face law suits regarding false claims of their speed and chronic connection issues.I think at this point Verizon and others should be given an opportunity as well. If Apple really wants to expand the footprint of this very popular device they have got to break away from AT&T and open it up to other carriers. They did well with AT&T but it's time to expand the availability of this device not limit that availability.
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