AT&T Seeks to Extend Exclusive iPhone Deal

AT&T Inc. (NYSE: T) is reportedly pushing to extend its contract to be the exclusive provider of Apple Inc. (Nasdaq: AAPL)'s iPhone, according to published reports.

The touch-screen smartphone has been a runaway hit with consumers, and it has poached many customers from rivals T-Mobile (UK) , Verizon Wireless , and Sprint Corp. (NYSE: S). But the exclusive deal reportedly runs out next year, and AT&T wants to extend that until 2011. The deal has given AT&T scores of new subscribers who generate more average revenue per user because of the required data plan, and it could gain millions more this summer if a rumored new iPhone comes out.

The carrier has had to pay a heavy price to be the exclusive provider of the iPhone, though. With the original handset, AT&T was giving Apple a monthly share of revenue from each iPhone customer. The mobile operator dropped that agreement with the release of the iPhone 3G and moved to a more traditional model where AT&T subsidizes the handset by as much as $425 per unit. Additionally, AT&T is not fully happy that it has ceded nearly every aspect of user experience over to Apple, as most iPhone customers only deal with the carrier when they're paying the bill.

Get the rest of the story at Information Week.

— Marin Perez, InformationWeek

Cable Next-Gen Technologies & Strategies – Making cable faster, broader, deeper, better

If you want to know where the cable tech space is heading, we've got you covered. Join the biggest names in the industry in Denver, CO on March 14 & 15 for the latest edition of Light Reading's Cable Next-Gen Technologies & Strategies conference.

Back for a record 16th consecutive year, Cable Next-Gen is the premier independent conference covering the broadband technology market. This year's edition will tackle all the top tech topics, including 10G, DOCSIS 4.0, Distributed Access Architecture, next-gen PON, fixed wireless access, network virtualization, the Digital Divide and more

Get your free operator pass here.

Sign In