Submitted by Chad Shmukler on
USA Today reported in an article published today that AT&T has exclusive rights to the iPhone in the United States for a period of five years. That's right, FIVE years. Exclusivity agreements between mobile phone device manufacturers and service providers are nothing new, especially in the United States. That said, a 5 year exclusivity agreement is unheard of.
AT&T, like Apple, is happy to hang their hat on the iPhone. Both companies are betting on, and expecting, big returns from the iPhone after it is released this june. And, according to USA Today, AT&T's CEO - Stan Sigman - isn't afraid to play hardball. USA Today quoted Sigman as saying:
"I'm glad we have (the iPhone) in our bag," he says. "Others will try to match it, but for a period of time, they're going to be playing catch-up."
That period of time, we now know, is a very very LONG period of time. For customers of CDMA networks like Verizon and Sprint, or even other non-AT&T GSM/UMTS networks, this essentially means giving up on the iPhone.
Who knows how many iPhones will be on the streets 2, 3, 4 years from now? How many will be able to resist? Will you?
Comments
nomad replied on Permalink
it will not take them long at all look at windows vista they had the cracks out for it before vista was out it will more than likely take then a month or less to unlock it
Anders Batten replied on Permalink
Yes, there's likely a decent chance someone will unlock the GSM version.
Still, that doesn't do anything for the CDMA folks (Verizon, Sprint, etc). There's no way to make a GSM iPhone work on those networks.
Gravlock replied on Permalink
I wonder how long it will take for someone to unlock an iPhone? I think less than 5 years...
Chad Shmukler replied on Permalink
We'll likely see 3 generations of iPhones during this 5 year period. This is huge.
Chad Shmukler replied on Permalink
Might not take long, but who knows? But let's not compare it to Vista. Let's hope it has nothing in common with Vista at all! :)
vgoth replied on Permalink
Guess I'll be waiting for the competition's phones, because I won't be an AT&T customer...
Trav replied on Permalink
WHY OH WHY DID APPLE SELL TO EVIL AT&T? I LOST ALL RESPECT TAKING ON A PARTNER LIKE AT&T. I REALLY DID WANT ONE.
TLS replied on Permalink
AT&T sucks BIG TIME as a cell service provider! It is a shame that the iphone is limited to AT&T as they will lose A LOT of sales, especially with all of my friends who want one but don't want AT&T service!!! :(
I was ready to prurchase when released as were multiple people until they found out it was only available via AT&T!!! what a shame.... :(
CAF replied on Permalink
They chose AT&T because it has the most subscribers. Not because it had the best network.