AT&T's Exclusive Rights to the iPhone Ending in 2009?

Unlike the Motorola Razors and LG Chocolates of the world that have managed to become it-products for a time but fade into the shadow of competitors’ releases or fizzle into obsolescence with outdated features and stylings, the Apple iPhone has managed to remain atop the mobile phone heap for nearly two years, which is a century in the mobile phone industry.



Since its release, the iPhone has only been available through AT&T, who has seen impressive profit margins, despite the weakened economy, largely as a result of the iPhone. Nevertheless, with the contract reaching its end in 2010, key industry rival Verizon is taking aim at iPhone distribution, something that has AT&T shareholders nervous.

The negotiations have been ongoing for several months now, with few details available other than serious negotiations are underway between carriers Verizon and AT&T and manufacturer Apple. AT&T’s stranglehold on the iPhone has, since day one, been a source for complaint, particularly among the many facing fees for terminating contracts they themselves remain locked into prematurely.

As the contract end-date approaches and negotiations heat-up even further, it is likely more details will boil out. In the meantime, however, and perhaps to the benefit of AT&T shareholders, most of this is being kept under wraps.

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