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

vsomanv 12/5/2012 | 4:07:04 PM
re: AT&T Seeks to Extend Exclusive iPhone Deal does that mean the app store revenue is shared across the developers and Apple? AT&T does not share the pie?.. who hosts the Store - AT&T or Apple?
Sign In