Length of AT&T's exclusive contract revealed

[kdarling]

USA Today article about ATT CEO's iPhone deal

Summary: Originally two years, ending in 2009. Extended one more year, to 2010, because of the current subsidy.

[lokiju]

Damn,

There goes my hopes of Verizon having it anytime soon.

Not that it maters since I'm in a 2 year contract with AT&T now anyway :P

[wwooden]

Originally Posted by lokiju

Damn,

There goes my hopes of Verizon having it anytime soon.

Not that it maters since I'm in a 2 year contract with AT&T now anyway :P

I really doubt Verizon will ever have the iPhone, unless Verizon changes their network to GSM. I really don't see Apple making a CDMA compatible phone ever, it's not the future nor world wide in use.

[maddan]

I am really happy regarding the news! I love the fact that since AT&T is the exclusive carrier in the U.S., less people will have the chance of acquiring the phone. Maybe I am being a little selfish, but I would rather another "Razr" episode did not occur; people who can afford a product paying $800 when it first comes out (because of exclusivity), and then it becoming available for free with a two-year contract. Talk about unfair...

[bigjnyc]

Originally Posted by maddan

I am really happy regarding the news! I love the fact that since AT&T is the exclusive carrier in the U.S., less people will have the chance of acquiring the phone. Maybe I am being a little selfish, but I would rather another "Razr" episode did not occur; people who can afford a product paying $800 when it first comes out (because of exclusivity), and then it becoming available for free with a two-year contract. Talk about unfair...

Have you seen the lines all over the US for this thing? I think the iphone lost its exclusivity on July 11th.

[t0mat0]

In exchange for its payout, AT&T got a year extension, into 2010, on its exclusive distribution deal with Apple, people familiar with the matter say. Sources asked to not be named because the terms are confidential.

Under the original iPhone contract, Apple had the right to offer the device to other carriers beginning in 2009. If Apple exercised that clause, AT&T would have lost one of its biggest points of leverage with customers — exclusive access to the iPhone. Nailing the extension "is a very big deal," Entner says.

Stephenson declined to discuss the contract, saying only that he is "very happy" with the arrangement.

Pertinent part

[mkrishnan]

Originally Posted by wwooden

I really doubt Verizon will ever have the iPhone, unless Verizon changes their network to GSM. I really don't see Apple making a CDMA compatible phone ever, it's not the future nor world wide in use.

I have mixed thoughts on that. If the iPhone indeed launches in Korea using GSM, then yes, I think the chances of a CDMA iPhone are pretty nill. If the market for the CDMA iPhone is both the US and Korea, the US CDMA market is certainly quite large, and as I understand it, the Korean one still is also.

[davidlw]

Verizons 4G will be GSM.

[stooley]

Originally Posted by mkrishnan

I have mixed thoughts on that. If the iPhone indeed launches in Korea using GSM, then yes, I think the chances of a CDMA iPhone are pretty nill. If the market for the CDMA iPhone is both the US and Korea, the US CDMA market is certainly quite large, and as I understand it, the Korean one still is also.

VOIP and LTE anyone (just a personal guess)? VZW is suppose to have this deployed on their new 700mhz in the 2010/2011 area....hmmm. VZW iPhone could most definitely happen. If carriers start deploying calls VOIP instead of the cellular network when LTE launches, we could see that happen and things would get VERY interesting. There would be no reason not too...esp with the bandwidth that LTE brings to the table. Just a matter if everyone does VOIP with LTE.

AT&T has already said they are going LTE with all of the other GSM carriers so you know Apple will develop an iPhone with LTE based 4G.

If Apple launches a new iPhone next year and the contract does not extend another year...then we can really start speculating

[kdarling]

Originally Posted by wwooden

I really doubt Verizon will ever have the iPhone, unless Verizon changes their network to GSM. I really don't see Apple making a CDMA compatible phone ever, it's not the future nor world wide in use.

Apple has already made a new phone with a different radio. Many phone makers make more than one radio model. It's not that hard to imagine, unless you think Apple is exceptionally incompetent.

But I agree it won't happen with current standards.

When Verizon and ATT move to 4G LTE, then we could see a new iPhone that could work across most major carriers.

[mkrishnan]

Originally Posted by stooley

VOIP and LTE anyone (just a personal guess)? VZW is suppose to have this deployed on their new 700mhz in the 2010/2011 area....hmmm.

I do see what you're saying, but on the other hand (first, taking into account that these timing estimates are usually rather optimistic), how many iPhones does Apple intend to sell between now and 2011? AFAIK, looking at all the other carriers, the cost of porting a phone from GSM to CDMA or vice versa isn't all that high. It's not like Apple is designing the wireless chips.

I'm really excited about LTE, but I'm also not holding my breath. The chances in the US (sigh, sadly) that it will truly bring any kind of nirvana of true intercompatibility among all the carriers is close to nill.

[stooley]

Originally Posted by kdarling

Apple has already made a new phone with a different radio. Many phone makers make more than one radio model. It's not that hard to imagine, unless you think Apple is exceptionally incompetent.

But I agree it won't happen with current standards.

When Verizon and ATT move to the GSM 4G standard, which is CDMA based LTE, then we'll see a new iPhone that could work across most major carriers.

Yea if they don't do VOIP on LTE, then at least the data radios would be the same tech...just a matter of developing a chip with the new 700mhz and whatever the other GSM carrier decide to deploy their LTE on.

Then they would only have to worry about putting a CDMA radio in there instead of the GSM for the cellular side. That even makes is easier on apple.

Either way, I think this will be more of a reality when LTE launches.

[CharQuake]

AT&T gets better service where I live then verizon and verizons customer service sucks I'm fine with the iPhone only being available on AT&T

[galactic732]

Originally Posted by CharQuake

AT&T gets better service where I live then verizon and verizons customer service sucks I'm fine with the iPhone only being available on AT&T

seriously?

ATT's coverage is based on global coverage (most of Europe in included, where you pay roaming charges)

ATT's customer service is incompetant. I think we all know that when trying to find information about the iPhone from them. Verizon's customer service is a million times better. If/When the iPhone comes to verizon, I'm switching back.

[schmoopy.design]

Originally Posted by wwooden

I really doubt Verizon will ever have the iPhone, unless Verizon changes their network to GSM. I really don't see Apple making a CDMA compatible phone ever, it's not the future nor world wide in use.

I believe Apple approached Verizon about an iphone exclusive before anyone else. Obviously they thought a CDMA phone would be feasible.

[arkitect]

I wonder if the same extension of exclusivity deal was struck with O2 in the UK?

[hairydawg75]

Originally Posted by galactic732

Verizon's customer service is a million times better.

In your opinion, but myself and others would disagree.

[kdarling]

Originally Posted by arkitect

I wonder if the same extension of exclusivity deal was struck with O2 in the UK?

It does seem to be related to the carrier's subsidy investment.

[maddan]

Originally Posted by bigjnyc

Have you seen the lines all over the US for this thing? I think the iphone lost its exclusivity on July 11th.

Yet there are still millions of people who want the iPhone but will not get it because they are with another carrier.

[Sonicjay]

Originally Posted by hairydawg75

In your opinion, but myself and others would disagree.

In my area, Verizon's service is considerably better. I'd switch back in a second if they got the iPhone

[redman042]

I was one of the people who really thought an iPhone would end up on Verizon (CDMA version of course) this year or next. It just didn't make sense to me that Jobs would limit his potential market. Of course, part of my interest was selfish - I was a long time Verizon customer and wanted badly to have this phone on that network.

But I finally caved on Monday and switched my wife and I to AT&T for the iPhone. Part of the decision was due to signs that AT&T is working hard on expanding 3G and network coverage in California (and it's decent in my area now). Verizon is still much better, but I was sick of Windows smartphones, and wasn't sure about a Blackberry.

Anyway, I'm loving my new phone, and reading this article about the contract extension to 2010 makes me even happier that I switched.

[WillJS]

Oh how it would be awesome for Verizon to have the iPhone.

/dreams.

[SilentLoner]

Originally Posted by arkitect

I wonder if the same extension of exclusivity deal was struck with O2 in the UK?

I want to know this too, o2 in my opinion have been the best network I have been on them all, aslong as their 3g network is rolled out more I will be a happy chappy.

[wreckshop]

Originally Posted by schmoopy.design

I believe Apple approached Verizon about an iphone exclusive before anyone else. Obviously they thought a CDMA phone would be feasible.

iphone is a data centric phone, so it makes sense that Apple approached the CDMA carriers who by that time already had built out their 3G networks. I know for a fact that Apple also approached Sprint and was turned down.

[hairydawg75]

Originally Posted by Sonicjay

In my area, Verizon's service is considerably better. I'd switch back in a second if they got the iPhone

That's really what I was trying to say......it's a huge YMMV thing. Verizon's customer service both over the phone and in store is what led me to AT&T.