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AT&T Fights for iPhone Exclusivity

- By - Source : Tom's Guide US

AT&T is allegedly in talks with Apple to extend an agreement that would see AT&T remain the sole provider of the iPhone through until 2011.

The two companies currently have a deal that gives AT&T exclusive rights to sell the iPhone in the U.S. The Wall Street Journal this week reports that CEO of AT&T, Randall Stephenson is now in discussions with Apple to get an extension until 2011.

The iPhone has been a cash cow for AT&T and exclusivity would hugely benefit the carrier. According to WSJ, AT&T garnered 4.3 million iPhone subscribers in the second half of 2008 and 40 percent of those were new to the network.

That said, Apple has sold 17 million iPhones since 2007 and we’re not sure the company will be in favor of a deal that would prevent or discourage would be iPhoners from getting their hands on the device. AT&T has been plagued with 3G issues over the last year and there have been countless lawsuits from iPhone users who say the service is not what was advertised by the network. Offering the iPhone on Verizon, T-Mobile and Sprint would net the consumers who remain adamant that switching to AT&T is too high a price to pay for the iPhone.

Stating the obvious aside, there’s the little issue of Verizon. Prior to the release of the first iPhone, Apple went to Verizon and offered the company the chance to be the exclusive provider. Verizon declined and the Cupertino company took its device and went to AT&T. Would Apple be willing to give Verizon a second chance? Or, more important, would the bigwigs at Verizon admit the mistake that had been made and come back, tail between legs, to offer its customers the iPhone?

Apple is declining to comment on the reports surrounding its talks with AT&T other than to say, “We have a great relationship with AT&T,” a statement that could mean, we’ll stick with AT&T or we don’t want to sucker punch AT&T so we’re trying to work something out that will keep everyone happy.

It’ll be interesting to see how this one pans out. Apple already offers the iPhone on multiple networks in other countries so it’s clear the company is no longer dead set on only offering it through a single carrier. Would you guys want to see the iPhone offered on Verizon, T-Mobile or Sprint? I’m all for multiple networks and equal opportunity but Apple doesn’t exactly have a reputation for being accessible.

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tayb 04/15/2009 8:32 PM
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Hopefully Apple see's the light and realizes the biggest thing holding back the iPhone is AT&T. Only this time Verizon needs to NOT turn them down like a bunch of fucking idiots.

Anonymous 04/15/2009 8:47 PM
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Yes, they need to offer the iPhone on Verizon. My wife and I both like the iPhone, but don't want to switch carriers. Didn't Verizon turn down Apple because Apple wanted too much control over the cell phone network ? That's what I was told.

MDillenbeck 04/15/2009 8:48 PM
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NO cell phone manufacturer should EVER tie themselves down to one service provider.

Each provider has markets where it is strong/dominant, and other markets where it is weak. One city will have great Sprint coverage, another great AT&T coverage, and a third place may be good only if you have Verizon Wireless.

In my region, I would never have AT&T. Sure, it works in many areas, but the dead spots are in areas I use. Verizon, on the other hand, comes in clear as a bell.

Note that I have not mentioned customer service at all. This also varies by company. When I tried to switch from Verizon Wireless to Sprint and my monthly bill would have gone down significantly (by about $50), they denied me. My credit at the time would only permit for 2 lines and I needed to add a line for my mother to my and my wife's plan. I asked to talk with someone who could make an exception, but they said no one could override the computer's decision.

I called Verizon Wireless, and they said they could reduce the cost of my plan and add a third line, but they just needed to get a supervisor's approval. I called the 800 line, and it only took about 5 minutes to have my mother's phone shipped.

Of course, since we don't have any laws to protect the consumer, service providers in the USA merely blacklist those who try to make the same phone for each company and thus take away our choice by requiring provider-phone hookups. So, in the end, I guess it is better that Apple admit defeat and succumb to AT&T's will rather than be drived entirely out of the market place.

cablechewer 04/15/2009 8:48 PM
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I have considered getting an iPhone, but I don't want to be tied to a specific carrier because I frequently go back and forth between the US and Canada. If Apple has an unlocked iPhone where I can just swap cards or settings as I cross the border I'll consider it when my current contracts are up (unfortunately my current phones and contracts came about before all my travel and have lousy roaming options). Until then it is simply too expensive a toy...

cablechewer 04/15/2009 8:51 PM
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Hanin33 04/15/2009 8:53 PM
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that phones are locked into particular service providers is a bit retarded. i will say this for the iphone under att, at least they didn't castrate it like they do nearly every other one of their smart/pda phones such as the HTC Fuze/Touch and the TyTN II... i suspect apple wouldn't allow it ;) i still don't comprehend why anyone that seriously (business and hardcore TXTing) uses a cell phone would want it to be an iPhone.

cablechewer 04/15/2009 8:54 PM
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Sorry about the multiple posts. IE kept telling me I wasn't logged in and I tried to correct the problem :( Hopefully it doesn't show up a half dozen times :(

scook9 04/15/2009 8:55 PM
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if sprint gets the iphone, ill be on that like white on rice in a glass of milk on a paper plate in a snow storm

Hatecrime69 04/15/2009 9:27 PM
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Come on apple, do something smart for once and let everybody get one on whatever carrier they want

Sorin 04/15/2009 9:33 PM
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The one single thing stopping me from getting an iPhone actually isn't AT&T's network. I've been using them for the 7 years that I've had cell phones and haven't had problems. The one thing stopping me is the stupid mandatory thirty dollar per month data plan ON TOP OF whichever plan I get (the forty dollar per month plan I've happily had since 2002). That's insane. If other carries legitimately got the iPhone, and didn't have the stupid and expensive mandatory data plan, I'd jump ship in a heartbeat.

Something has to go - either the data plan being mandatory or the exclusivity to AT&T. I don't really care which.

hellwig 04/15/2009 9:35 PM
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Like Apple even remembers Verizon rejecting them. They didn't, afterall, remember denying they were even making the iPhone to begin with. Apple seems to know how to make money, and I'm sure they'll realize there's no reason to stick with AT&T (unless AT&T pays out some big bucks).

Anonymous 04/15/2009 9:48 PM
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HermDawg 04/15/2009 10:01 PM
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I would've gotten my wife an iPhone, but we are not willing to switch from Sprint.

JMcEntegart 04/15/2009 10:13 PM
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I'm still waiting for something to give over here. O2 Ireland has had the iPhone exclusively since it launched and I'm hoping once the next phone hits the market it'll be available with my provider. That said, I'll consider changing either way once my contract expires in June. The power of the iPhone, it doesn't even feel like a choice anymore! :P

eatmeimadanish 04/15/2009 10:29 PM
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I do not understand the philosophy behind keeping the iPhone locked up in AT&T. They could potentially become the only phone on the market if they could sell it to other companies.

thejerk 04/15/2009 11:36 PM
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the comparable minutes/data plan at sprint is $30 *less* per month than what i have at at&t... i'd love for the iphone to be available through sprint just because of the ridiculous data plan pricing.

Anonymous 04/16/2009 4:26 AM
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The iPhone will never go to Verizon Wireless. The reason for that is Verizon Wireless's business model. Unlike RIM's App World everything that the iPhone has competes with Verizon Wireless's products. Why use Vcast Rhapsody, Vzappzone, and Vznavigator when the iPhone has, the App Store, iTunes, and in 3.0 third party vendors will be able to make turn by turn for the iPhone.

The problem for Verizon is they want their customers to go through them for everything. Ringtones, music, gps, and what have you. This is in direct competition with Apple whom wants the customer to go through them for everything.

nictron 04/16/2009 6:49 AM
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For the IPhone to be absolutely awesome and have great penetration it needs to move away from exclusivity partners. This will allow apple to open up the iPhone and create a very powerfull competitor to the rest of the market.

Come on Apple think clearly about this!

hillarymakesmecry 04/16/2009 1:24 PM
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I'd love for the iphone to move to Verizon. But, Lolipopjones is absolutely correct. Verizon likes to nickle and dime their customers for every little thing and they couldn't do that any more with the iphone.

$30 a month extra for a smart phone is ridiculous. I love Verizon's service reliability but I can't stomach $30 extra a month. I want a smart phone but I'm not sure I can afford it.

outacontrolpimp 04/16/2009 2:04 PM
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it seems like everyone has a cellphone these days, but thats wrong, there are many people who dont have cellphones. This is a time where money is tight. carriers need to lower costs to help out consumers. it cant possibly cost them more then $5 a month to give people service. I understand theres more costs then that, but is it safe to say that its around $15? why are people paying 50-200 (family plans also) for their cellphones.

Verizons a smart company, Id bet my money that Apple DID want to much control like in comment #2. Also verizon has their own app/music store which makes them money, ATT dosent have that. Verizon wants to sell apps.

I really would like Verizon to get the iphone, but i dont think the nasty fruit will give it to them easily.

E7130 04/16/2009 3:34 PM
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cablechewer :
I have considered getting an iPhone, but I don't want to be tied to a specific carrier because I frequently go back and forth between the US and Canada. If Apple has an unlocked iPhone where I can just swap cards or settings as I cross the border I'll consider it when my current contracts are up (unfortunately my current phones and contracts came about before all my travel and have lousy roaming options). Until then it is simply too expensive a toy...



Buy one without a contract and unlock it.

warezme 04/16/2009 4:34 PM
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Apple should become their own carrier and just buy the air time from the other carriers. The apple network. You would still pay out the nose but would have access to other networks.

uronacid 04/16/2009 10:18 PM
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tayb :
Hopefully Apple see's the light and realizes the biggest thing holding back the iPhone is AT&T. Only this time Verizon needs to NOT turn them down like a bunch of fucking idiots.



I don't think that they were stupid to turn Apple down at all. Apple wanted way more than their phone was worth in that agreement. I think that it was more wise to wait for Apple to come back with a more reasonable deal.