Alive Matters

…and other reflections from the frontier

Archive for July 9th, 2007

What is the extent of the iPhone + at&t exclusive?

Posted by mtc on 9 July, 2007

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Has anyone seen any mention of at&t exclusive on the iPhone beyond the current iPhone model?

If you read the official press releases that announced the exclusive arrangement, no where at all does it mention a multi-model lock-up. Only a multi-year agreement… From Apple:

MACWORLD SAN FRANCISCO—January 9, 2007—Apple® and Cingular announced that Cingular, the largest wireless carrier in the US, will be Apple’s exclusive US carrier partner for Apple’s revolutionary iPhone unveiled today. As part of this multi-year partnership, Apple and Cingular are working together to provide innovative new features to mobile phone users, such as iPhone’s pioneering and unique Visual Voicemail, a first on any mobile phone in the world.

“Apple chose Cingular because they are the best and most popular carrier in the US,” said Steve Jobs, Apple’s CEO. “We are thrilled to be offering our revolutionary new iPhone exclusively with Cingular, and look forward to working together with them to create some wonderful new features for our customers.”

“By partnering with Apple, we are continuing our commitment to raising the bar for customers,” said Stan Sigman, Cingular’s president and CEO. “We think the iPhone is one of the most innovative devices ever created, and we look forward to letting our customers be the first in the world to experience the future of mobile phones.”

From at&t:

Apple has chosen AT&T, the best and most popular carrier in the US with over 62 million subscribers, to be Apple’s exclusive carrier partner for iPhone in the United States.

With this multi-year exclusive partnership, iPhone will only be available with wireless service from AT&T. Working together ensures seamless integration between network and device.

Am I missing something? All the statements seem limited in scope, if not broad in impact.

I am not sure I need to mention the significance of this… but if true, anyone who bemoans the at&t “feature” of the iPhone may be relieved if future models — like say an HSDPA or EV-DO, true 3G version is announced next year… or a iPhone mini… or a iPhone Pro with corporate email and mechanical keyboard — are available on their current carriers.

A May 21st USA Today article reported (seemingly confirmed, but not definitively so) that Apple was barred from developing a CDMA-version of the iPhone. The article was interpreted as speculation by a number of blogs, which triggered a bunch of unintelligent fan-boy vs Apple-hater discussions, instead of any meaty confirmation.

I simply cannot believe Apple was shortsighted enough to grant at&t such a long runway. Five years in the mobile phone industry is an eternity. USA Today asserted:

Apple is barred for that time from developing a version of the iPhone for CDMA wireless networks.

What they refer to as a “version of the iPhone” is certainly way too loose language to suit Apple legal I’ve got to imagine.

What’s the real story here? I’m just asking.

Fundamentally, this blog post is driven by my feelings as a consumer in a free market. I want buyers to have choice. In particular, I hate lock-ups of hardware and specific mobile networks – this coupling has not benefited consumers in any measurable way, yet somehow the mobile phone market is under the illusion that the network really matters. The crazy network infrastructure economics – and resultant shareholder pressures on network operators has distorted the consumer experience in a bad way. The product and service offerings are a strange supply-side amalgam based little on the demand-side realities of end-user experiences.

No need for me to get too wound up. It doesn’t even affect me today. I am not anxious to ditch my BlackBerry, and I am certainly not willing to deal with at&t customer service anytime soon. The Verizon angle doesn’t phase me… I am not a CDMA customer today, in fact I am a T-Mobile customer, but perhaps what is most relevant is that I am an ex-at&t customer, and I am not going back anytime soon.

Posted in BlackBerry, T-Mobile, apple, at&t, gadgets, wireless | 1 Comment »