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AT&T Keeps Exclusive iPhone Deal, Drops Revenue Sharing

AT&T will be keeping its exclusive carrier deal in the United States for Apple's iPhone, and it appears that the revenue sharing deal the partners had for the original iPhone has been dropped. While the AT&T maintains its status as the exclusive iPhone partner in the U.S., Apple has swung non-exclusive deals with carriers in other markets.

AT&T confirmed that it will be selling the iPhone 3G at US$199 for the 8GB model and $299 for the 16GB model, in line with Apple's newly announced pricing. Current iPhone customers can upgrade to the second generation model when it is available, but will have to start with a fresh two-year service contract.

The cell carrier also said that iPhones purchased after May 26 can be traded in for the iPhone 3G for free.

Service contracts for the new version of the combination iPod and smartphone, will be changing, too. Unlike the iPhone 3G price drop, however, service plans will cost more thanks to a $10 increase in data plan rates. The data portion of the contract will now cost $30 instead of $20.

AT&T has also managed to work itself out of the revenue sharing deal that was part of the company's contract with Apple for the first generation iPhone. According to AT&T, the change brings its deal with Apple inline with industry standard carrier/manufacturer agreements.

The change potentially means that Apple will see less iPhone-generated revenue since it won't be getting a monthly kick-back from cell carriers for each in network phone user. Apple could, however, make that difference up if it manages to sell enough iPhones around the world.

Apple CEO Steve Jobs announced the iPhone 3G on Monday during his World Wide Developer Conference keynote presentation. The second generation iPhone includes 3G wireless data connectivity, a built-in GPS, and will be available in 22 countries on July 11.

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kwameaj said:

member since 24 Jul 2004 with 4 posts, unranked, send him a message or view his profile

Is there anyone with inside knowledge to answer the following questions?

- Is it possible to sign the AT&T 2-year contract WITHOUT the data plan?

- Will I be able to use the GPS without the data plan?

If I am forced to buy the data plan, then I will definitely wait for the next version of iPod touch. I should have the GPS.

I love the phone but I'm can afford to fork out $70 every month.

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