AT&T CEO admits iPhone won't be exclusive forever
By Donald Melanson 
posted Jul 23rd 2009 4:48PM
posted Jul 23rd 2009 4:48PM
It may not be all that shocking from a common sense point of view, but AT&T CEO Randall Stephenson's statement that "there will be a day when you are not exclusive with the iPhone" is still quite a departure from anything he's said in the past and, given the stakes involved, pretty darn notable. That word came at Fortune's now happening Brainstorm: Tech conference, where Stephenson unsurprisingly didn't elaborate on any negotiations with Apple, and only went so far as to say that he thinks AT&T's partnership with Apple "works really, really well -- maybe as well as any strategic partnership we have." Of course, none of that means exclusivity is going away anytime soon, and you can pretty safely bet that AT&T will keep on pushing as long as it can.
But they are not exclusive now.
Well with a little help from iClarified they are...
show some love, nub!
Every product gets old and, just like 'new-toy-syndrome' when we were all kids, the novelty wears off. Who cares if every carrier has an iPhone in 2012 when iPhones are more passe than they already are?
someone's excited
And this guy has got to know the *MASSIVE* drop in subscribers as soon as you can get a CDMA iPhone. AT&T service is terrible! I have tried it a few times, and I just cannot make the switch and stay sane from dropped calls and slow data.
cya at&t no more dro
the relationship "works really, really well", translated as "making us tons, and tons of money"
This guy just looks like a total Douche Bag. Sorry, those beady eyes, slick hair and tight suit. Seriously, I can't wait til' the corporate "style" goes away. I'm not saying everyone has to look like a slacker or Steve Jobs but the "I'm trying to hard to look like a businessman" look is annoying.
more...
I don't care how "professional" you think you look. You're failing your company as CEO. A lot of people are getting bitter about ATT's decisions to it's customers. Particularly with the iPhone.
-delaying MMS(still)
-No Slingbox
-No tethering(still)
-arm and a leg for data rates
On the other hand I"m sure they're making money hand over fist so the board members could care less. M-O-N-E-Y
No way. Next they'll say water is wet.
Water is wet?
swear to God! There's also a rumor that bacon is tasty.
here, hope it helps clear up the confusion.
Definitions of wet on the Web:
* covered or soaked with a liquid such as water; "a wet bathing suit"; "wet sidewalks"; "wet weather"
* containing moisture or volatile components; "wet paint"
* supporting or permitting the legal production and sale of alcoholic beverages; "a wet candidate running on a wet platform"; "a wet county"
* producing or secreting milk; "a wet nurse"; "a wet cow"; "lactating cows"
* cause to become wet; "Wet your face"
* consisting of or trading in alcoholic liquor; "a wet cargo"; "a wet canteen"
* make one's bed or clothes wet by urinating; "This eight year old boy still wets his bed"
* moisture: wetness caused by water; "drops of wet gleamed on the window"
* besotted: very drunk
Your truly,
-You All Suck
this is totally gonna make me wet. wait add that too the definitions too.
you mean starchy.....rather than wet!!!
No way. Next they'll say YOUR MOM is wet.
(couldn't resist)
actually, to be able to "wet" something with water, the surface has to be hydrophilic. There are surfaces that make water not wet. So lets say your skin was hydrophobic, water would therefore not be wet.
So, if a lot of Americans are homophobic... does that make homosexuals not... gay? :)
Who's Water?
Its pretty amazing its been as long as it has. Sprint has the pre for what, like 6 months.
In that case there will be a day when I am not an AT&T customer.
Seriously, between the appalling signal I get everywhere in Chicago to their lax customer service, I almost regret the switch from T-Mobile.
Yup the day this happens is the day Verizon gets me back. I hate the fact that I love this damn phone.
I may get an iPhone one day.
Fascinating. Oh do go on!
yea when Apple moves to a better network in the US I might pick one up
Already done. No corn to report today.
Pick a shit up?
(couldn't resist either)
cool story, bro
What a jerk, just fix your damn network and give me my mms and tethering without trying to nickel and dime me for my hard earned money.
Nickel and diming, lol. Wait till you get on Verizon. You can't scratch your ass with your phone without giving Verizon a cut. Luckily I have a BB Curve from them and aside from locking down the GPS to BBMaps, its fairly open.
Thank you! All carriers suck, but I want my choice of suckage, thanks!
And iPhone sales should take off once Apple isn't shackled by AT&T.
BRING ON THE COMPETITION!!!!!!!!!!
4G ON VERIZON PRETTY PRETTY PLEASE!!!!
Can you blame Apple? When you announce a major feature that people have been BEGGING for like MMS - and your 'Exclusive carrier' says..um..yeah about that..uh..its not ready...
You are gonna start looking elsewhere.
I still dont think Verizon is really an option - especially after VZW just announced that 'other' stores would have to be seperately downloaded onto the phone - and iTunes and the App Store - compete directly with VCast...
Maybe VZW will make an exception? Granted I will still stick with ATT because I HATE Verizon...
Apple could probably get around Verizon's requirement very easily. Any phones that will be sold through Verizon don't include the iTunes Store or App Store apps. Make those free downloads in the desktop App Store.
Of course, with the amount of money the iPhone would bring to Verizon, they may very well overlook that requirement.
Eric, how can you download the App Store from the App Store when there is no App Store?
@Warren >> "I still dont think Verizon is really an option - especially after VZW just announced that 'other' stores would have to be seperately downloaded onto the phone - and iTunes and the App Store - compete directly with VCast..."
Here's how I see it all playing out... Apple will come to Verizon, and keep its App Store and iTunes Music Store for Apple's iPhone. Apple already has an ecosystem for its phone.
Verizon can still have their app store for all the LGs, Motorolas, Windows Mobile and other phones.
The Apple App Store won't compete with VCast. Nothing you buy on VCast will work on the iPhone... and nothing on the Apple App Store will work with any other Verizon phone. So, that's not a problem at all.
Verizon does, however, want people to buy an iPhone (and a data plan) and stop using those cheap dumbphones.
@Michael
I see your point. It would be in Verizons best interest to make an 'exception' to the rule and allow iPhone to have its own ecosystem separate from VCast. But iTunes now sells DRM free music...so why couldnt I buy a song from my iPhone and pix message the song or email it as an attachment to a VZW customer [6025551234@vzwpix.com] and boom! they have a new song for their enV touch. Granted thats possible now with desktop iTunes - but it may become a little easier with carrier support of the iPhone.
Verizon does want the iPhone, sure - thats no secret. But with congress stepping in about exclusivity deals between carriers and handset manufacturers, wouldn't it be in Apples best interest to say "Fine. It now works with T-Mobile too." Apple doesnt have to re-design hardware for CDMA carriers, simply tweak software to allow a T-Mobile SIM to work. Which shouldnt be too hard since the dev team seems to unlock every software version thats released within a day or two, Apple should be able to 'flip a switch'.
"Verizon can still have their app store for all the LGs, Motorolas, Windows Mobile and other phones. The Apple App Store won't compete with VCast"
VZW would not make any money off of App Store downloads, so they would not want users to download from it. That is why they force every manufacturer to use VCast... They would be in direct competition, so don't expect that to happen anytime soon.
@ gib >> "VZW would not make any money off of App Store downloads, so they would not want users to download from it. That is why they force every manufacturer to use VCast... They would be in direct competition, so don't expect that to happen anytime soon."
They are NOT in direct competition! And I've already explained why. The apps that you can buy from VCast only work on Verizon OS phones. Verizon won't make every Java/BREW developer recompile their VCast apps to work on the iPhone... and you're not gonna have thousands of iPhone developers make their touchscreen apps work on some crappy flip phone. The 2 app stores are NOT compatible... so you won't be taking money away from VCast if you buy an app from Apple.
If you've got an LG enV Touch... there are plenty of apps in the VCast store. And if you've got an iPhone... there's already a huge app store for that.
Look, Verizon jumped into the media/app business... but no one said that it was a good idea. Maybe Verizon will demand a cut from the Apple App Store and iTunes Store... but how could they?
AT&T doesn't make any money from the App Store at all. Apple gets 30%, developers get 70%. AT&T is a phone company... that's all.
I think Verizon learned their lesson years ago when they demanded too much from Apple... and that was BEFORE the success of the iPhone and the App Store.
Verizon just needs to get the iPhone on their network... so they can start getting $100 a month for the iPhone and the data plan... and abandon all hopes of VCast being a huge player in the media/app market.
@Warren - I am with you, I will continue to stick with AT&T because I really don't like VZW.
"AT&T CEO admits iPhone won't be exclusive forever"
Is the over-inflated pricing on their plans going to cease being exclusive, too?
That's something to ponder since Apple gets a cut on the plans.
The two big things that kept me from getting an iPhone were the network and the pricing structure. I can easily afford ~$85 a month(w/ unlimited texting), but why pay that when there are real alternatives now at ~$50 a month on a faster, more reliable network?
No, they don't.
They used to get a cut in the original contract for the 1st one, but with the 3G and onward the agreement was modified so that AT&T pays a subsidy to Apple up front. Hence the phone used to cost $500 or $600, now it cost $200 or $300...
I still don't get this. When I was on Verizon, data service was $40/mo. When I got my 1st-gen (EDGE-only) iPhone, it was $20/mo. I think AT&T 3G is $30.
The rate plans seem the same if not cheaper on AT&T as the big V.
The only thing that seems more expensive is text messaging.. ?
I hate AT&T as much as the next guy, more-so everyday. However, I just checked Verizon's plans and the text message price structure is the same, although they have unlimited VZW to VZW texts on each teir. PDA/Smartphone "E-Mail & Web" is $30 a month so it would be the same pricing unless they changed it.
I cant wait to see how many people switch carriers once other carriers get the iphone. Also, I just don't see why apple can't sell the stupid phone unlocked in the usa, They could stop going through a middle man
because its how the american cell phone market works. Unlocked phones have historically never sold well here in the USA.
8/10 customers will take a subsidized phone with a contract over a full-price "unlocked" phone...on top of this carriers here will then charge you additionally for a SIM card (or at least they used to)
The only way for a phone carrier to subsidize sales on a phone (usually...there are exceptions...such as with the razr) is to offer a exclusivity agreement...at least at the phones initial launch.
There are pros and cons to this across the board. But thats just the way things here work in the states.
Why would they sell a phone unlockled that would only work on AT&T. No other major carrier uses the same band for data that the iPhone uses. Verizon and Sprint are CDMA and TMobile's 3G uses a different frequency. An unlocked iPhone in the US would be for calls only on Tmobile.
The reason that unlocked phones don't sell well here is that you STILL have to sign a 1-year or 2-year contract to switch carriers (at least to ATT or Verizon). So it doesn't do any good to buy a phone off ebay or anywhere else without a contract because you're losing that subsidy money.
Sucks.
As soon as it comes to Verizon I will get it. Until then, I will stick with my blackberry.
Does this mean that some day when I walk into an AT&T store they won't greet me with "Welcome to AT&T home of the iPhone" and won't try to shove one at me every 5 seconds? And maybe they'll try to actually get some decent WinMo phones? Or maybe some Androids?
I have an irrational dislike of Apple, and I don't want to pay for a data plan right now. I'd rather just use WiFi, and most of ATT's WinMo phones are crap, at least from what I can see.
Decent WinMo? Oxymoron. There's a reason AT&T's selection of WinMo phones is crap...
@Unix
Yeah, the reason is the ROMs. Flash a Fuze with DA_G, and rock out. I put Juicy 8 on my CDMA Touch Pro, and it smokes! Shitty stock ROMs and an admittedly ho-hum WM6.1 don't do these phones any good. However, fast, optimized custom ROMs and the much more finger-friendly WM6.5 make WinMo a contender.
This is great.
Maybe AT&T will start actually offering competitive pricing and service, and stop relying on the iphone to keep their business booming.
I'm waiting for it to hit sprint or verizon, ATT is too damn expensive and T-mobile is terrible.
iPhone on the Sprint Network ftw!
I would buy the HTC Hero or iPhone if they came out for Sprint. I will not use verizon or att for cell carriers again and tmobile has bad to no reception here.
That's not going to happen. Verizon has at least some chance of a future LTE iPhone being on their network. Sprint seem to want to stick with WiMAX. Since LTE has much more widespread international support, it would make little to no sense for Apple to gravitate away from it.
Give this man a cookie!
If they go with another carrier will it still work with the laptop i purchased a few months ago? I'm really worried about it becoming prematurely obsolete.
Good. Not that we all (us being Engadget readers and all) didn't know this to be true, it's nice to hear the head of AT&T acknowledge it. Too bad he's not scared enough about it to get on with fixing the miserable 3G and over-priced plans. I still don't understand why more people don't go with Sprint since they include messaging with their data plans.
Not to mention the better coverage and half as much data rate.
iPhone was exclusive on AT&T because it is the biggest GSM carrier in the US. It was not VZW because who in thier right mind would create a device they intend to distribute world wide with a CDMA radio. I will never use a CDMA service no matter what the device is.
If the iPhone is sold without a subsidy Americans will struggle with the concept of actually paying more than the cost of the device. That is why they changed the methods the subsidy methods the second time around.
The data plans are fairly cheap considering how much more data the iPhone uses compared to other data devices.
In the end none of this matters to me as I am hoping devices running Android (or whatever Linux based OSs come out) will eventually beat out apple in market share.
I think this iPhone horse has been beaten. Now that it can finally do some of the things other devices have been doing for the last 5 years it doesnt have anywhere else to go unless they can actually add some innovation. If no innovations are made on apples part and their touch screen is either matched our the patent expires they will just be left with the fanboys.
GSM 3G is CDMA. W-CDMA. Which is nice because CDMA doesn't go "dit dit dit dit" in nearby speakers like TDMA (GSM 2G) does.
3G GSM (W-CDMA) is NOT the same as CDMA2000 (aka regular old CDMA). Just because it has CDMA in the name, doesn't mean they are the same, or even related.
wouldn't it make more sense if there was also a cdma version businesswise?? I mean the 80 million verizon has and the 49 from sprint thats 129 million customers that have that option. Now with your lame gsm here in the states your signal bars disappear once you are in hospitals, buildings etc wow i hate gsm so much because you literally have to go outside the house to make a phone call and all that garble talk i always hear from att/tmobile customers when they are in stores like a costco or walmart or at school, libraries etc i seriously just hanged them up and txt them better because is so annoying to hear words cut out.
Other phone manufacturers make phones on both CDMA and GSM.
I have a Verizon CDMA Blackberry Curve, and my friend has a T-Mobile GSM Blackberry Curve. It's actually a good thing to have your phone available to everyone.
If it wasn't for the AT&T exclusivity contract... by this 3rd year we would have had an iPhone on EVERY carrier in America.
TOTAL PHONE DOMINATION
@Periks19
Number of subscribers doesn't matter much. You have to remember its alot harder to change phones on between contracts than just to renew a 2 year plan.
If you are going to renew your plan, to most people, it wouldn't matter which carrier its on. (Unless there is no Sprint in their area).
Compare AT&T pre-iPhone to currently, lots of new subscribers.
Personally I don't like phones without sim cards, and smart phones that can't multitask.
I can't wait to hear Apple through AT&T under the bus when the iPhone hits Verizon.
I can hear the Jobs-Note now... The greatest phone ever... on the best network...
Of course I meant "throw" not "through". But, you guys knew that, didn't you?
Actually, no.
I imagined Apple under a bus yelling about AT&T. Weird.
SPRINT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!4G WiMax+iPhone= ? Possibilities...
Eh... I'm gonna say 4G Wimax may go south on Sprint. LTE is going to be the new GSM/UMTS. Wouldn't it be great if every 4G carrier around the world used the same damn standard for once? I mean that's why unlocked phones never caught on, you only can take it between 2 national carriers, and on the 2 big CDMA carriers you can't take the damn devices overseas (unless you're in India or running dual-mode). A universal agreement on LTE would be so much better for the customers.. just not for carriers.
For all the posturing apple does about their products "just working" you'd think they'd be a little more active about getting rid of that "does everything but make calls" image the iPhone has thanks to AT&T's crappy network.
Yeah they better get right on that. It's not like the iPhone is selling well or anything. What fools Apple must be!
"Our partnership with Apple works really, really well -- because as long as people just want iPhones, we don't have to improve the quality of our service at all! People will keep paying for our crappy service because they have no choice - unless they want to be socially outcast capital-L Losers!"
Sprint+ 4g+iphone=win!
Maybe I'm in the minority but I love my at&t service here in the dallas area. I was with sprint for years until I switched a couple of years ago and I have no regrets about it. Maybe it's the DFW area but my friends that are on att also have no complaints about the service.
Yeah, same here. Coverage in the Dallas area is great!! Dallas (Addison) FTW
Im so sick of AT&T service! constantly dropping calls. I have to stay by the window to make a call. The network is overloaded with new customers mostly on iphones. Its bogging down the system's bandwidth, The iphone is getting the bad end on this exclusive! At&T is giving the iphone a bad name! I cant believe apple doesnt pull out of the contract.
Im sure AT&T gave apple an arm and a leg to have this contract. I dont get why apple would allow this to happen.. ohh yeah money.
No MMS! no tethering ... SHAME ON YOU AT&T and apple for allowing this to happen. Switching ASAP when iphone goes to Verizon
I don't see why AT&T couldn't keep the iPhone, it's private business and if they pay Apple they should be able to keep the iPhone.
And Congress has zero right to interfere on this issue since I don't think the big 4 took bailout money.
Where does it say that AT&T will lose the iPhone?
"iPhone won't be exclusive forever" just means that it wont be 100% AT&T.
When Apple announced the iPhone, they said there was a 5 year exclusivity agreement with AT&T. This is to expire in 2010.
So they know when the cut off for exclusivity is.
http://digitaldaily.allthingsd.com/20090717/analyst-att-screwed-without-iphone-exclusivity/
Seems people always like the bash the leader or front runner. I hear all these claims how at&t has such a horrible service but yet be in line every year when the new iPhone comes out. I hear people complain about Sprint, Verizon, and T-Mobile each company has their pluses and minuses, and you can gripe about either one. Today it’s at&t and tomorrow it will be someone else.
You very rarely hear people complain about Verizon's network coverage or quality. What you do hear them complain about is their walled garden approach, locking down of phones, and installing the fugly Verizon skin on every damn dumbphone.
And don't forget the unforgiving overage charges. Rollover minutes is one of the few things I like about ATT.
i have a feeling if theres an iPhone made for verizon and verizon keeps it the same somewhat. They'll make it a lot more expensive "just because they can" Unlucky for me, i'll be a sucker and deal with it.
that guy has douche spelled all over his forehead
I think AT&T and iPhone don't work well, a lot of disconnections and worst no signal at all.
Andy
http://aclevertwist.com/blog
It's funny that AT&T has done nothing but bring DOWN the potential of the iPhone. Ask anyone who loves their iPhone what they like least about it, and most of them will tell you either the AT&T service, or something borked by AT&T (3GS tethering, MMS, etc, etc, etc). The 3G coverage blows, and the only alternative is TMo, whose 3G is even further back in the infantile stage.
Could you imagine if Apple had gotten the iPhone on VZW or Sprint initially? We'd have had dual-mode CDMA/UMTS devices at 3G speed, with MMS and all the goodies from the GET-GO. I'd bet the iPhone would be doing even BETTER than it already is, and this is coming from a WinMo die-hard (read: not a fanboy). I'll be so glad when AT&T gets the boot.
I am a ATT customer for a long time, but it doenst bother me at all to see the Jesus Phone on multiple carriers.
LTE (4G) will make sure we get at least Verizon as an option.
And that means my iPhone will work in most places outside of the US!
Kick your congressman in the ass to stop all exclusivity.
Apple...The new Microsoft.