The Wall Street Journal is reporting that Randall Stephenson, CEO of AT&T Wireless, is in negotiations with Apple to extend their contract to exclusively offer the iPhone for another year:
But AT&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.”
Once the contract expires, Apple could offer the iPhone on any network that meets their terms, or attempt to sign another exclusive contract with a different carrier like Verizon. According to USA Today, Verizon was Apple’s first choice for the iPhone, but the company balked at Apple’s terms and walked away:
Among other things, Apple wanted a percentage of the monthly cellphone fees, say over how and where iPhones could be sold and control of the relationship with iPhone customers, said Jim Gerace, a Verizon Wireless vice president. “We said no. We have nothing bad to say about the Apple iPhone. We just couldn’t reach a deal that was mutually beneficial.”
Many consider Verizon Wireless’s 3G network to be superior to AT&T’s in terms of coverage and bandwidth, although AT&T has plans to double the speeds of their current network from 3.6Mbps to 7.2Mps around the same time the next iPhone is rumored to be released.
Apple and AT&T have been characterized as an odd couple, with Apple seen as cutting edge and AT&T as slow to the game. Their contrasting styles were exemplified at the launch of the original iPhone when AT&T’s (then Cingular) former CEO Stan Sigman delivered a speech using notecards that many blasted as bland and filled with empty corporate speak, while Apple CEO Steve Jobs delivered perhaps his best speaking performance ever.
Wall Street Journal: “AT&T Chief Looks to Keep iPhone, Deepen Wireless Push“
Pingback: AT&T wants to extend iPhone exclusivity until 2011? (Eclectic Electronics)
Pingback: USA Today: Apple and Verizon Talk Possible iPhone Deal for 2010
#1 by E. Joan Harris on March 25th, 2010
Quote
I am with ATT now but my bill seems to begetting out of hand with the specials gone. Within the next two or three months I am planning on getting 3 I Phones 3Gs on a family plan. I am looking for a good deal. Any suggestions
#2 by Yolanda on March 30th, 2010
Quote
Joan I have an Iphone and I suggest you switch to Tmobile.
You will have cheaper service and they are on the same network as AT&T. They even have their own I phone department and everything. I used to have at&t and my bill was rediculous. Now I pay $70.00 a month with free text and 1800 minutes. Try it.
#3 by Chris on April 25th, 2010
Quote
AT&T Is the exclusive carrier for the time being for the iPhone which is a great product and tmobile does use gsm technology but AT&T coverage is better sprint and tmobile are both the cheapest wireless carriers offering plans that real competitors like Verizon and AT&T can compete wirh reason is to attract cheap customers u want the coverage u have to pay for it enough said i worked for all the carriers and currently Verizon do to alltel merger and we aré the Best!