Perhaps the most common complaint about the iPhone is that it’s available only on AT&T–the network, which, according to a recent survey, has far and away the most dropped calls in the U.S. for smartphone owners.
A five-year exclusivity agreement between the two companies has been rumored for some time, but until now, we hadn’t seen any evidence that such a contract actually existed. Three years after the release of the original iPhone, the proof finally appears to have surfaced, thanks to an ongoing class-action lawsuit in California that alleges that the two companies have an illegal monopoly over iPhone service.
Engadget, which dug up the proof, explains:
[The accused monopoly was established] by telling customers the iPhone’s required service contract was two years long when the Apple / AT&T exclusivity deal was actually for five years–thus requiring buyers to re-up with AT&T for three years (and not, say, T-Mobile) if they wanted to keep using the iPhone.
In response to the suit, the appeal shed some light on the 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.