Print 38 comment(s) - last by Xarthos.. on May 25 at 11:34 AM

  (Source: The Huffington Post)
Apple may still try to squirm its way out of exclusivity

Those who follow the smartphone industry knew that Apple and AT&T had a very tight contract with the iPhone which has compelled the electronics maker to stay AT&T exclusive to date.  However, it was unclear just how long that contract was good for, until now. According to unsealed court documents uncovered by Engadget, AT&T has exclusive rights to sell the iPhone in the U.S. until 2012.

The documents come from a California antitrust class action lawsuit.  The plaintiffs claim that Apple attempted to create an illegal monopoly in 2007 when it failed to reveal that the secret deal would make it impossible for them to transfer their phones to other carriers in 2 years, without unlocking.

The case also accuses Apple of antitrust violations for blocking third party applications, a concern that still exists thanks to Apple's blocking of Flash and Flash ports, actions the U.S. Federal Trade Commission is currently examining for antitrust violations.

The court documents read:

The duration of the exclusive Apple-[AT&T] agreement was not 'secret' either. The [plaintiff] quotes a May 21, 2007 USA Today article – published over a month before the iPhone's release – stating, "AT&T has exclusive U.S. distribution rights for five years-an eternity in the go-go cellphone world."
"[T]here was widespread disclosure of [AT&T's] five-year exclusivity and no suggestion by Apple or anyone else that iPhones would become unlocked after two years... Moreover, it is sheer speculation – and illogical – that failing to disclose the five-year exclusivity term would produce monopoly power...

While the contract with AT&T is surely tight, it's possible Apple could payoff AT&T to cancel the contract, attempt to amend it, or declare it breached and fight it out in court.  There's a very real possibility, though, that it will simply stick it out till 2012, which would mean that 3 more years, and the next two iPhone models would be AT&T exclusive (in the U.S.).

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

RE: 4G iPhone
By TheRequiem on 5/10/2010 9:17:09 PM , Rating: -1
Actually, your statement is false. Please, people, LOOK up the facts before posting BS! Sprint isn't spending much if anything on their 4G network, they are using Clearwire to roll out 4G and Clearwire has BILLIONS of dollars in investments and resources, so please don't spread false information. It will still take Verizon a VERY LONG time to roll out their 4G to what Sprint/ Clearwire/ Tim Warner currently have and by the time they have access to 30 million Americans, Sprint and Clearwire will have hundreds of millions open in their market. This is a FACT.

RE: 4G iPhone
By retrospooty on 5/10/2010 10:04:54 PM , Rating: 1
wow, very angrily pedantic arent you...

Anyhow, your creepyness aside, Sprint may have a lead in this now, but they will find a way to blow it, and Verizon will still be the better solution.

RE: 4G iPhone
By Mitch101 on 5/12/2010 8:36:18 AM , Rating: 2
This Press Release to me is like Apple waving a red flag saying hey you can take another chunk of our market share if you made droid based iPod units. Oh Wait we shouldnt have acknowledged that.

RE: 4G iPhone
By Chaser on 5/11/2010 7:31:36 AM , Rating: 3
Ok so how's their 3G coverage? Please.

Since you didn't site your facts I'll post some too. Most investors with expertise in communications are betting their money on LTE.

As far as some other company blah blah one cares. This is a Sprint initiative and until I see some Clearwire commercials, well talk to the hand. One simply needs to look at Sprint's 3G network coverage maps, even their regular phone service coverage maps to see that Sprint's service is abysmal compared to Verizon.

Why will Verizon's deployment of LTE take longer? Because Verizon doesn't **** around. When they deploy new technology they are slow and methodical to ensure they uphold their legacy of the BEST coverage of any carrier in the U.S. Which is what they will do with LTE.
Sprint is marketing these gimmicks to slow the hemmoraging of its subscribers to other networks. Clearwire may have "billions" but Sprint is in trouble.

RE: 4G iPhone
By semiconshawn on 5/11/2010 9:46:05 AM , Rating: 3
Yey verizon, twice as much money so I can have 3g in whashatoe kansas...neat. Maybe if I was a truck driver or salesman. And poor under funded wimax clear how will they ever make it with broke investers like intel shoveling billions of dollars into them? As for LTE thats awesome, show me where I can sign up and use it. Today. Cause I use Clear right now and it works great ever tried it? oh no wait you read some tech articles and regurgitated someone elses opinions....

RE: 4G iPhone
By weskurtz0081 on 5/11/2010 1:04:22 PM , Rating: 2
Used some 4G devices, they have since been returned. The 3G coverage with those devices was fine, but 4G was hit or miss.

So, IMO, it's not really a 4G vs LTE debate, it's 3G vs 3G until wimax has halfway decent coverage, even IN Houston the coverage is meh.

RE: 4G iPhone
By adiposity on 5/11/2010 1:06:50 PM , Rating: 2
I live in California Bay Area and Sprint coverage here is terrible compared to Verizon. That's not "whasatoe kansas," pal.

Verizon's coverage is better just about everywhere you look. Hell, any provider is better than Sprint, but I know that's just gonna make you mad...

RE: 4G iPhone
By retrospooty on 5/11/2010 3:09:27 PM , Rating: 2
verizon is $30 per month for unlmited. Who is doing that for $15?

RE: 4G iPhone
By seamonkey79 on 5/11/2010 4:24:04 PM , Rating: 2
Sprint does it for $10 unlimited.

That being said, I switched from Verizon to Sprint for a total of two days before I switched back because I tired of losing 'net when the 3G would drop.

My sister and brother-in-law live in Chicago, about 5 minutes from the United Center, and they just switched to Verizon from Sprint because the 4G box they purchased for their house kept dropping 4G and going to 3G, but not even much of that.

Sprint is a lousy network, even in larger cities (Chicago being a somewhat decently sized city). My Verizon phone works between Chicago and Joliet and down to Champaign just fine, but their Sprint phones hardly work in the city. The saddest part, the most telling point of poor Sprint service in their area? They switched to the Droid Eris and are impressed with its speed...

RE: 4G iPhone
By EasyC on 5/11/2010 11:24:25 AM , Rating: 2
I've been on multiple road trips with friends who have Verizon. They kept having to use my phone (Sprint). Not to mention Sprint offers MUCH more in terms of contracts for price. I get unlimited everything (not just voice). I made calls from Canada and didn't get charged 1 cent extra. Someone I know who has verizon... had a huge bill. They have big reds version of the unlimited plan.

The service coverage is negligable. I'll stick with getting more for my money. Thanks.

RE: 4G iPhone
By inperfectdarkness on 5/11/2010 3:18:20 PM , Rating: 2
my money goes to whoever has the cheapest & most reliable tethering option without data limits.

RE: 4G iPhone
By semiconshawn on 5/11/2010 4:27:17 PM , Rating: 2
Thats simply impossible. It is not possible to have a better experience on Sprint than Verizon you must be mistaken. Verizon cost twice as much so it must be better everywhere all the time.

"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA

Latest Headlines

Most Popular Articles5 Cases for iPhone 7 and 7 iPhone Plus
September 18, 2016, 10:08 AM
Automaker Porsche may expand range of Panamera Coupe design.
September 18, 2016, 11:00 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM
No More Turtlenecks - Try Snakables
September 19, 2016, 7:44 AM
ADHD Diagnosis and Treatment in Children: Problem or Paranoia?
September 19, 2016, 5:30 AM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki