Apple/AT&T Contract Bans Apple’s Creation of CDMA Model iPhone

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Date: Wednesday, May 23rd, 2007, 07:35
Category: News

iphonehand.jpg
Despite being in a position to be one of the coolest technological releases of 2007, Apple’s iPhone, the contract between Apple and AT&T will change how the iPhone is developed. According to an article in USA Today, the contract created between the two companies provides AT&T with exclusive distribution rights of the iPhone for five years also bars Apple from developing a CDMA-network-compatible version of the device for this period of time.
The ban serves a strategic function in that is keeps AT&T customers from switching over to competitors Sprint or Verizon Wireless, which both use the CDMA network protocol. AT&T’s devices currently operate via the GSM network protocol.
AT&T currently claims about 62.2 million customers, whereas Verizon and Sprint claim 60.7 and 53.6 million customers, respectively.
Part of this was to definitely be expected and if you have any comments or ideas about this, let us know.


iphonehand.jpg
Despite being in a position to be one of the coolest technological releases of 2007, Apple’s iPhone, the contract between Apple and AT&T will change how the iPhone is developed. According to an article in USA Today, the contract created between the two companies provides AT&T with exclusive distribution rights of the iPhone for five years also bars Apple from developing a CDMA-network-compatible version of the device for this period of time.
The ban serves a strategic function in that is keeps AT&T customers from switching over to competitors Sprint or Verizon Wireless, which both use the CDMA network protocol. AT&T’s devices currently operate via the GSM network protocol.
AT&T currently claims about 62.2 million customers, whereas Verizon and Sprint claim 60.7 and 53.6 million customers, respectively.
Part of this was to definitely be expected and if you have any comments or ideas about this, let us know.

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