Prince McLeanBeing the exclusive U.S. provider for Apple's iPhone means that wireless carrier AT&T won't have to worry about a competing version of the device for rival cellular networks for at least half a decade.
As part of the deal, Apple is reportedly barred for that time from developing a version of the iPhone for CDMA wireless networks, such those operated by Verizon Wireless and Sprint.
Of course, the five-year embargo has been somewhat expected ever since Verizon vice president Jim Gerace began boasting over his company's decision not to bite at a similar five-year exclusive that would have made Verizon Wireless the iPhone's exclusive U.S. provider.
"We said no. We have nothing bad to say about the Apple iPhone," Gerace told USA Today back in January "We just couldn't reach a deal that was mutually beneficial."
The Verizon exec said his firm just could not come to terms on a variety of issues with the iPhone maker. Among them, Apple reportedly wanted a percentage of the monthly cellphone fees, a say over how and where iPhones could be sold, and control of the relationship with iPhone customers.
In speaking to the paper this week, AT&T Wireless chief executive Stan Sigman showed his own signs of swagger as he acknowledged the primary advantage in landing the iPhone exclusive — which is that customers who crave the device will be forced to take their business to his front door.
"I'm glad we have (the iPhone) in our bag," he said. "Others will try to match it, but for a period of time, they're going to be playing catch-up."
William Gallagher
Marko Zivkovic
Amber Neely
Christine McKee
Andrew Orr
Malcolm Owen
76 Comments
As part of the deal, Apple is reportedly barred for that time from developing a version of the iPhone for CDMA wireless networks, such those operated by Verizon Wireless and Sprint.
That's hard to believe. I'd more likely believe that the 1G iPhone is exclusive for 5 years but a 2G iPhone or iPhone Nano could go anywhere.
I'm shocked! Shocked!
Although, to me, this is more proof there won't be a 'pay as you go' vehicle (without competition, why bother?).
And it also shows how desperate Cingular must've been to make the deal they did. They're laying a lot of eggs in this one basket.
As part of the deal, Apple is reportedly barred for that time from developing a version of the iPhone for CDMA wireless networks, such those operated by Verizon Wireless and Sprint.
That's hard to believe. I'd more likely believe that the 1G iPhone is exclusive for 5 years but a 2G iPhone or iPhone Nano could go anywhere.
Nope. Its been said before that the agreement is exclusive for all iPhone devices. Cingular would be stupid to have signed such a sweetheart deal for apple as described, and then allow Apple to release another phone (and better, since its newer) for use with other's networks.
Um, how will it work in Asia if there is no CDMA version? So, there will be a CDMA version.
I think the headline here is ATT gets 5 year exclusive deal in the US, which was already suspected.
Nope. Its been said before that the agreement is exclusive for all iPhone devices. Cingular would be stupid to have signed such a sweetheart deal for apple as described, and then allow Apple to release another phone (and better, since its newer) for use with other's networks.
Maybe apple could develop an "apple phone" for other networks instead!