Verizon iPhone seems unlikely before 2012; AT&T got five years exclusivity

Engadget unearthed court records from 2008 from a class action suit where testimony was given to the effect that the 2007 exclusive agreement with AT&T contained a FIVE year term. Here are the quotes:

“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…”

So what does all this mean? Well, unless Apple has an “out” for a breach by AT&T or is willing to breach the agreement itself, Verizon will not see an iPhone until 2012.

Well, the Wall Street Journal could have some explaining to do because they ran a piece on March 29 stating:

“With Apple developing a phone with CDMA capability, its exclusive U.S. arrangement with AT&T dating to 2007 appears set to end.”

Now, are there ways to reconcile the WSJ article and the court documents from Engadget? Sure. Perhaps the CDMA variety is not intended for Verizon and will be sold overseas. Maybe “appears” is the operative word in the quote above. Perhaps Apple believes AT&T breached or Apple is prepared to breach. In any event, it seems like every few days an article runs one way or another about the Verizon iPhone. I’m not going to write more about this based on rumors but the court documents are very real. The original deal with AT&T had a five year term expiring in 2012 contrary to everything than ran in the blogosphere and in mainstream media.

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