AT&T Pushing for Exclusive iPhone Rights Through 2011

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Date: Wednesday, April 15th, 2009, 08:35
Category: iPhone

3giphone.jpg
After three years of holding exclusive rights to the iPhone, AT&T is looking to take one more shot at an exclusive deal for the Apple handset and may keep it away from competitors until 2011.
According to the Wall Street Journal, “people familiar with the matter” have stated that AT&T has a deal to keep the iPhone in its stable until 2010 and that negotiations are underway to have the device onboard for one more year.
Though there has been no specific commentary from AT&T regarding this, an Apple spokeswoman would only say that the two companies have a “great relationship.”
The commentary follows a report from last year that also said AT&T had struck a deal to keep the iPhone until 2010 and may provide insight into current talks. At the time, the cellular carrier reportedly agreed to allow iPhone 3G subsidies in exchange for a one-year extension of the iPhone’s US exclusivity. Although the cost of discounting those phones has been severe — as much as US$1.3 billion to date, according to an estimate — the agreement renewed interest in AT&T and gave it millions of users paying at least US$60 per month (on grandfathered plans) for service.
Should AT&T be allowed to keep exclusive rights to the iPhone, it would be able to help prevent customers from jumping ship to Verizon or an alternate carrier at a time when the market is saturated and customers are more likely to have switched than sign up for the first time. The company added 1.9 million iPhone users just in the fall 2008 quarter alone.


3giphone.jpg
After three years of holding exclusive rights to the iPhone, AT&T is looking to take one more shot at an exclusive deal for the Apple handset and may keep it away from competitors until 2011.
According to the Wall Street Journal, “people familiar with the matter” have stated that AT&T has a deal to keep the iPhone in its stable until 2010 and that negotiations are underway to have the device onboard for one more year.
Though there has been no specific commentary from AT&T regarding this, an Apple spokeswoman would only say that the two companies have a “great relationship.”
The commentary follows a report from last year that also said AT&T had struck a deal to keep the iPhone until 2010 and may provide insight into current talks. At the time, the cellular carrier reportedly agreed to allow iPhone 3G subsidies in exchange for a one-year extension of the iPhone’s US exclusivity. Although the cost of discounting those phones has been severe — as much as US$1.3 billion to date, according to an estimate — the agreement renewed interest in AT&T and gave it millions of users paying at least US$60 per month (on grandfathered plans) for service.
Should AT&T be allowed to keep exclusive rights to the iPhone, it would be able to help prevent customers from jumping ship to Verizon or an alternate carrier at a time when the market is saturated and customers are more likely to have switched than sign up for the first time. The company added 1.9 million iPhone users just in the fall 2008 quarter alone.

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