AT&T Hopes to Extend iPhone Exclusivity

[Vincent Ferrari]

<div class='os_post_top_link'><a href='http://online.wsj.com/article/SB123973238611017715.html' target='_blank'>http://online.wsj.com/article/SB123...8611017715.html</a><br /><br /></div><p><em>"When Randall Stephenson became AT&amp;T Inc.'s chief executive, the company had just started offering the iPhone. The blockbuster device has since reeled in millions of new customers and helped revitalize the telecom giant's brand. Shane Kislack for The Wall Street Journal AT&amp;T CEO Randall Stephenson, shown in his office, aims to lock up the iPhone and overhaul Ma Bell's marketing. But AT&amp;T's exclusive deal to carry the iPhone in the U.S. expires next year, according to people familiar with the matter, and Mr. Stephenson is now in discussions with Apple Inc. to get an extension until 2011."</em></p><p><img src="http://images.thoughtsmedia.com/resizer/thumbs/size/600/at/auto/1239804878.usr18053.jpg" /></p><p>I have a feeling that extension will happen.&nbsp; Apple's options are semi-limited.&nbsp; Part of the success in the iPhone has come from thef fact that they've only ever had to make two skus at a time, a low and a high capacity version of the same phone.&nbsp; Same internals, same OS, same everything, just different capacities.&nbsp; If Apple were to produce another phone, a CDMA version, they'd have to succumb to Verizon's control-freak attitude about the phone's OS and theme and it would have to have all of Verizon's additional overpriced services on the menu.&nbsp; Sprint would probably want their mobile TV and other silliness on their home screen, and T-Mobile, if the iPhone went to another GSM carrier, would insist on it having a T-Mobile theme with My Faves on the home screen.</p><p>Part of the reason the AT&amp;T partnership with Apple worked so well was that AT&amp;T got out of Apple's way and let them do their thing.&nbsp; I don't really see any of the other carriers doing the same right now.&nbsp; Maybe dangling the iPhone under their nose might get them to change their ways, but that's not something I'd hold out hope for.&nbsp; AT&amp;T will probably end up with the exclusivity as long as the agreement continues to work for both parties.</p>

[crimsonsky]

Good thoughts, Vincent, and I suspect you're probably right. T-Mobile also uses non-standard 3G frequencies, so this would be another obstacle. Just the thought of seeing the carrier branded foolishness on the iPhone home screen is enough to send one fleeing in fright!

T-Mobile, in their favour, don't really put a lot of useless stuff on their phones except for T-Zones (totally worthless) and My Faves (which doesn't even appear unless you have a My Faves plan - at least they don't on my Wing and Curve), but a My Faves screen on an iPhone would be an abomination!

[mbking]

I have to also agree. I lived for years with Verizon adding their hacks to Windows Mobile and making it worse than it already was. Apple did us all a big favor when they worked this deal with AT&T. The fact that Apple manages the phone while AT&T provides the network has helped to make the iPhone the success it is. It would be interesting to see if the other carriers would give into this model.

[Chris Gohlke]

Probably going to happen, but I wish it wouldn't. I left ATT just prior to the iPhone coming out due to bad coverage in my area and horrible customer service. I've been very happy with Altels service, but now that I've been using the Touch for a few months, I really could go for the iPhone. BUT, not enough to go back to ATT (for that it would have to sing me lulabies and make me dinner).

[Jason Dunn]

AT&T got out of Apple's way and let them do their thing.

Yeah, Apple made AT&T their b**tch. :D About time to. The carriers should just accept their role as bit/voice pipes and let the technology world advance instead of holding it back with their idiocy.

[Vincent Ferrari]

Yeah, Apple made AT&T their b**tch. :D About time to. The carriers should just accept their role as bit/voice pipes and let the technology world advance instead of holding it back with their idiocy.

They sure did, and because of it, I'd say both sides benefitted tremendously.

Lesson learned for those chosing to pay attention. Carriers are quite daft, though, and don't really do a good job of learning.

[emuelle1]

One of the many things I love about my iPhone is that it doesn't have to remind me from every possible angle that it's an AT&T branded phone. I don't have useless links to AT&T Navigator, CV, overpriced and DRM'ed music store, etc. Except for Stocks, there's nothing on the iPhone that I don't use regularly.

I'm not sure what I'd do if the iPhone became available on other networks. The only other GSM option I have around here is T-mobile, but from what I hear I wouldn't gain anything from switching to their network.