"In what may be a rare peek at negotiations between Apple and carriers, a prominent newspaper claims AT&T agreed to hefty iPhone 3G subsidies on the condition that it remained the lone US carrier for the handset until 2010.

Tucked away amid discussions of AT&T's pleased reaction to the iPhone's results, USA Today surprisingly mentions that the American cellular service provider didn't simply agree to switch from a monthly revenue sharing model to a heavily subsidized approach without first setting some conditions.

As struck before the original iPhone's launch, Apple's initial agreement for iPhone exclusivity had AT&T serve as the only US network for iPhones until 2009, or roughly two years after customers' contracts began. But to greenlight the subsidy -- which is described as "painful" and damaging in the short term -- AT&T allegedly insisted on an extension of the deal until 2010, when T-Mobile and other carriers could start offering the device." Via AppleInsider .

Labels: apple, att, iphone

¶ posted by Jimmie Geddes, Editor @ 8/02/2008 08:51:00 AM