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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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.
Read More