Never formally disclosed by any of the companies, the length and nature of Apple’s iPhone exclusivity deals with AT&T in the U.S. and O2 in the United Kingdom have been called into further question by two recent reports. In an article for USA Today, Leslie Cauley reports that in exchange for a recent agreement to pay Apple a subsidy for every iPhone 3G it sells, AT&T received a one-year extension on its exclusive iPhone distribution deal with Apple, pushing the agreement into 2010. However, Cauley previously claimed in a May 2007 article that “AT&T has exclusive U.S. distribution rights for five years,” suggesting that the contract would run through 2012, and that an extension would bind Apple to AT&T through 2013. AT&T and Apple have not spoken publicly on the length of the agreement, but the more recent report appears to reflect a more accurate understanding of the deal terms.
In a separate article, United Kingdom-based newspaper The Guardian reports that while Apple’s agreement with O2 was believed to run through 2012, a window for renegotiation after two years may leave Apple with the ability to partner with a second carrier, possibly as soon as Christmas 2009. The report suggests Orange as a possible carrier, as it already offers the iPhone in France, and was said to have been very close to becoming the phone’s carrier in the U.K. before being dropped in favor of O2 “at the last minute.” Orange UK boss Tom Alexander said, “I would love the iPhone, especially with our big emphasis on [mobile] data [services], it would be great to have.”