Skip to main content [aditude-amp id="stickyleaderboard" targeting='{"env":"staging","page_type":"article","post_id":181987,"post_type":"story","post_chan":"none","tags":null,"ai":false,"category":"none","all_categories":"business,mobile,","session":"B"}']

AT&T has a five-year exclusivity deal on the iPhone (report)

AT&T has a five-year exclusivity deal on the iPhone (report)

US iPhone fans who are excited to see the phone add mobile carriers other than AT&T may have to wait two more years, according to a report in Engadget.

AT&T reception is a constant complaint among iPhone users, especially in San Francisco and New York. There’s some debate about how much of that is AT&T’s fault, but regardless, the Apple-AT&T deal is seen as a major issue. I know San Francisco residents who won’t buy an iPhone for that very reason, and others who were holding out for a rumored Verizon iPhone coming this summer.

[aditude-amp id="flyingcarpet" targeting='{"env":"staging","page_type":"article","post_id":181987,"post_type":"story","post_chan":"none","tags":null,"ai":false,"category":"none","all_categories":"business,mobile,","session":"B"}']

Well, that phone may not be coming any time soon. Engadget says it dug up court files related to a class-action lawsuit claiming that Apple deceived iPhone buyers by not telling them they’re going to be locked into AT&T until 2012. Apple’s reported response? Sure, it’s a five-year deal, and that’s no secret — after all, the deal was mentioned in a USA Today article in 2007.

Asked for comment by VentureBeat, an AT&T spokesman said, “We have a great relationship with Apple. We don’t comment on the specifics of our relationship.”

AI Weekly

The must-read newsletter for AI and Big Data industry written by Khari Johnson, Kyle Wiggers, and Seth Colaner.

Included with VentureBeat Insider and VentureBeat VIP memberships.

As Apple chief operating Tim Cook noted in a recent earnings call, Apple has ended all of its exclusive carrier deals except in three major markets — the United States, Germany, and Spain. But Cook has also been vague about when those final agreements will end.

Engadget notes that just because Apple and AT&T signed a five-year contract in 2007 doesn’t mean the carrier’s exclusivity will actually last until 2012. Contracts can be canceled or changed.

Update: TechCrunch’s MG Siegler takes a closer look at what USA Today and other publications have written about the deal, and argues that this agreement has already been changed, perhaps based on performance-related clauses in the contract.

Don’t miss MobileBeat 2010, VentureBeat’s conference on the future of mobile. The theme: “The year of the superphone and who will profit.” Now expanded to two days, MobileBeat 2010 will take place on July 12-13 at The Palace Hotel in San Francisco. Early-bird pricing is available until May 15. For complete conference details, or to apply for the MobileBeat Startup Competition, click here.

VentureBeat's mission is to be a digital town square for technical decision-makers to gain knowledge about transformative enterprise technology and transact. Learn More