AT&T in Talks with Apple to Extend iPhone Partnership

By Alexander Toldt
14:01, April 15th 2009
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AT&T in Talks with Apple to Extend iPhone Partnership

AT&T plans to keep the Apple iPhone exclusive for a bit longer than expected. The mobile phone service provider wants to extend the partnership with Apple on iPhone.
 
The current deal between the two companies stipulated that the iPhone will be sold exclusively through AT&T and with the carrier’s two-year contract for each customer of the popular smart phone. Under the initial deal, the iPhone would have been sold only through AT&T until 2009. Unfortunately for those who were waiting to get their hands on an unlocked iPhone, they’ll have to wait a little longer. 
 
AT&T and Apple Inc reportedly met and agreed on an extension of the deal last August. The extension covers the year 2009. But AT&T won’t let the goose with the golden eggs go away. The company wants to further extend the partnership. The current talks between AT&T’s Chief Executive Randall Stephenson and Apple executives is about an extension of the partnership until 2011, according to a report from The Wall Street Journal. 
 
Since it launched the very popular smart phone in June 2007, Apple sold 17 million units all over the world and the iPhone still has a long way to go. AT&T added 4.3 million subscribers in the second half of 2008 and 40% of those were new to the carrier. 
 
AT&T did not comment on the WSJ report and reiterated that it has a multi year partnership with Apple. Apple has several other similar agreements with wireless carriers in other countries were it sold the iPhone. The list of carriers includes O2 in the UK, Softbank in Japan, Orange in France. According to the WSJ report, the AT&T CEO has been eyeing potential acquisitions in India, possibly a partnership with the big cell phone provider Reliance Communications Ltd. the price of $30 billion for the aforementioned company was too high, Stephenson eventually decided. 
 
However, AT&T is most likely to keep the Apple iPhone close for the next couple of years thanks to its technological basis. AT&T is the only major American carrier that has 3G using HSPA standard on the 850MHz band, as the iPhone only supports its service for full data. 
 
There are signs of strains in the partnership between Apple and AT&T. When the wireless carrier announced last month that it plans to sell the iPhone 3G two-year contract-free, Apple quickly responded by adding the same offer in its Apple Stores. The unlocked version of the iPhone 3G will sell for $599 (8 Gigabytes) and $699 (16 Gigabytes). 



© 2007 - 2009 - eFluxMedia
Tags: ATT, Apple, iPhone
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