O2 iPhone Exclusivity Threatened In Britain?


imageCarriers that caught the Apple (NSDQ: AAPL) bug early and secured exclusive distribution rights for the iPhone are clamoring to maintain that position over competitors, but the pool of players is getting deeper. Britain



O2 in my opinion is an okay network provider, if you live in urban/sub-urban areas. Personally I think the iPhone only sold because of its interface and the fact Apple made it a quality product.
Vodafone or Orange would have been a better choice, but the '3' network is ahead of the a fore mentioned service providers, they have promoted the 3G network way before, they also use other networks for their signal strength, which in rural areas is a must.

The iPhone is over priced as a contract free item, personally I would rather buy an Apple Laptop for a few hundred pounds extra as the functionality outweighs that of the iPhone. (I know it's not a phone, but that's the point, I can buy a laptop with more processing power a bigger display, HDD etc, etc…)
On the minimum contract with o2, the texts and minuets are a joke… I would pay that extra for the iPhone for the lower tariff, but until (if the rumors are true) o2 start working with Voda to share masts and signal strength I cannot possibly justify buying one.

Sorry Apple, but I think you backed the wrong horse there… Personally I would revise who your carrier is in future.

Tricia Duryee

hi Digital Bear, Are you suggesting that shortening its exclusive agreement with Apple was a small price to pay in return for gaining its full share of service revenues back? It will be tough to know, given that AT&T;is already expecting the cost of subsidies to negatively affect its bottom line next year. A longer period of exclusivity would definitely help, so yes, in that case it does strengthen the argument that the period went from two to three years. Hard to say, with the iPhone's popularity, Apple may have been able to negotiate anything. Thanks for your thoughts! Tricia

digital bear

isn't the real upside for the carriers in the tail? the unit price of the us iPhone was dropped significantly but the monthly fee went soaring northward which basically shifts the upside potential for the carriers, in this case at&t;, into the future somewhat hiding the reality of their lucrative economics from the less than savvy consumer base? why would at&t;let this happen, tricia?

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