next story Blogs_next_icon

Who will iPhone tie up with in Europe?

Talks are on between Apple and most of Europe's big operators, although it seems likely that it will sign up several operators to tackle Europe's fractured telecommunications market.

Even as Apple launched the iPhone in the U.S. to positive reviews, it was in negotiations with most of Europe’s big mobile operators to sell its combined phone, music player and Internet device in Europe. Reports in a German regional newspaper said that T-Mobile has won a deal to sell iPhone in Germany starting on Nov. 1, outbidding Vodafone. Others are saying O2 is a lock. Apple hasn't signed with anyone yet.

In the U.S., the deal with AT&T is exclusive, meaning other operators can’t offer the iPhone for 2 years. We're waiting to see what distribution model Apple will use in Europe, although in all likelihood it will sign up several operators. No single operator covers all of Europe’s biggest markets. T-Mobile is present in Germany, the U.K. and eight other countries, but not in France, Italy or Spain. In France, Vodafone only has a minority holding in SFR, while Orange is not present in Germany or Italy.

According to Niek van Veen, an associate analyst at Forrester Research Inc., Apple is reportedly asking AT&T to share some of the revenue it makes from the iPhone. Europe's operators may not take kindly to this new business model though all of them could potentially benefit from the connection to Apple's brand with the long subscription contracts the iPhone could help them to secure.

“It’s more than just a question of reach and what Apple wants, it’s how much operators are willing to sacrifice their current (business) model for this phone,” van Veen said. Apple says it expects to launch the iPhone in Europe in the fourth quarter but has provided no other details.

[ Via computerworld ]