Apple yields on iPhone exclusivity and revenue sharing?

Stephen Withers
Tuesday, 22 April 2008 09:32

Your IT - Mobility

So far, Apple's business model has been to sell the iPhone through exclusive deals with one carrier per country, with trailing revenue in the form of a percentage of airtime payments. But that may be about to change.

According to a report from La Republica, Telecom Italy and Apple have signed a deal that will see the 3G version of the iPhone go on sale in that country in a few weeks time.

Instead of Apple taking a cut of users' monthly bills, the article claims the iPhone will sell at a higher price in Italy compared with other countries. This presumably reflects the way unlocked iPhones are available in France at a premium price.

Also, the Telecom Italy deal only gives the carrier an exclusive on Apple's handset for a few months.

This report, if true, ties in with rumours that the iPhone will be released in Australia without carrier exclusivity, although Telstra (the country's largest carrier and the operator of a 3G network that covers practically the entire population) is being tipped as Apple's initial partner.

One of the most compelling features of the iPhone and the plans offered by 'official' carriers is unlimited mobile data to the handset. This has resulted in iPhone owners being responsible for a disproportionately high share of mobile web traffic. It will be interesting to see whether other carriers in the countries where the iPhone is sold without a contract will offer equivalent plans.