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Apple Signed Five Year Agreement With AT&T in 2007 [Confirmed]

Apple Signed Five Year Agreement With AT&T in 2007 [Confirmed]

Posted May 10, 2010 at 7:08pm by iClarified
The duration of the Apple/AT&T contract has been confirmed to be five years, according to court documents unearthed by Engadget.

A California class action lawsuit filed in 2007 alleges that Apple illegally exerted a monopoly on iPhone service by telling customers their required contract was two years when the AT&T exclusivity deal was five. That forces customers to stick with AT&T for another three years to use their iPhone.

In Apple's response they confirm the five year deal,


The duration of the exclusive Apple-[AT&T] agreement was not 'secret' either. The [plaintiff] quotes a May 21, 2007 USA Today article – published over a month before the iPhone's release – stating, "AT&T has exclusive U.S. distribution rights for five years-an eternity in the go-go cellphone world."
...
"[T]here was widespread disclosure of [AT&T's] five-year exclusivity and no suggestion by Apple or anyone else that iPhones would become unlocked after two years... Moreover, it is sheer speculation – and illogical – that failing to disclose the five-year exclusivity term would produce monopoly power..."


Engadget notes that contracts can be canceled, amended, and breached so the five year deal may or may not still be in place.

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Apple Signed Five Year Agreement With AT&T in 2007 [Confirmed]



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Comments (6)
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Ryan
Ryan - May 10, 2010 at 7:54pm
Come to T-Mobile. I work there, I have an iPhone... I love my service and my phone. It's time to move on...
anon
anon - May 11, 2010 at 12:46am
nobody is FORCING you to do anything. it's your CHOICE. if you stay with ATT, it's your fault. You know how they're playing the game, so you choose to play along or do something else.
lee
lee - May 11, 2010 at 10:35am
Have fun using edge all the time:o
Casey
Casey - May 10, 2010 at 7:23pm
so if I signed up for a two year contract, it's really a five year?
Ryan
Ryan - May 10, 2010 at 7:53pm
No, it means you cannot "legally" unlock your iPhone to work with another GSM network for 5 years from the original contract date. (Contract between AT&T and Apple...)
BoweeZie
BoweeZie - May 10, 2010 at 8:12pm
unlocking is legal. that's why so many people do it :)
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