iPhone, exclusivity and the great British public

As one exclusive mobile network contract is signed, another one ends and devices open up to more operators. But what does this mean for users?

By Maggie Holland, 14 Oct 2009 at 08:30

People queuing for iPhone 3GS outside O2 store

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All good things come to an end. And this week signals the beginning of the end of an era for O2.

On Friday, it launches a shiny new device, in the form of the Palm Pre, exclusively on its network.

It’s already had a swanky celebrity filled launch party, worked the journalist and analyst circuit and put big bucks into the marketing and advertising campaigns.

However, the excitement around this big event hides a sadness of sorts. For, while the iPhone has been completely monogamous to the network in the UK since 2007, the love affair will soon be over and the relationship opened up to both Orange and Vodafone.

The beginning, not the end

When news first broke about the iPhone’s fate, many were quick to make bold statements about O2’s future and how much of a dent the iPhone would make once it moved out of the exclusive home its shared happily with O2 for the past few years. But O2 was quick to step in to try and silence the critics.

In an interview with the Guardian, the company’s chief executive Ronan Dunne didn’t hold back.

“The only prize to win was the exclusivity period – it was then going to multiple operators and we have known that all along. To suggest it's some sort of coup amuses me slightly,” he said in the interview.

"We were a successful business before the iPhone, we have been a successful business with the iPhone and we will be a successful business after it goes multi [operator],” he added.

Dunne’s words echo those used during a conversation IT PRO had with Marc Overton, Orange’s vice president of new business, wholesale and strategy, on the day the company announced a new mobile virtual network operator (MVNO) agreement with Transatel – a deal that will enable it to bring MVNO brands onto the Orange network in as little as six weeks.

“There are a lot of new initiatives. Next year there’ll be more of that. Just doing what we’ve done is not enough,” he said in response to suggestions that 2010 will be an exciting year for the company, which now boasts iPhone contracts in 28 countries and territories.

“The iPhone is a hero device. It’s important to note that without the iPhone we still had a very aggressive portfolio in that segment of the market. It’s part of a portfolio of devices, not just one device,” he adding, referencing the company’s efforts around Android and Windows Mobile 6.5. “This is a very exciting time for Orange.”

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3 comments

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The iPhone

An interesting article but perhaps there is something else to factor in. A friend of mine bought into the iPhone at launch and when the Mk II came along, got an automatic upgrade and was left with the original phone as a spare, he gave it to me. Having played with it and whilst seriously impressed with the technology, I gave it to my 32 year old son as more "his thing" than mine. This same friend is now coming to the end of his current contract so, on the basis that this time I keep it, I will get his MkII as he upgrades to MkIII, I will put it on pay as you go. Point is and given the success of the iPhone in terms of volume, there must be thousands of ex-contract phones out there which must have an impact on the market.

By popskihaynes on Tuesday Oct 20

iphone has failed in the UK

Apple are very sore after signing excluive deals with mobile operators in Europe.This is a very competative market although the Iphone have sold well initially the competition have court up and overtaken the technology and value package the iphone has offered in the past.Now unable to move with the market due to exclusive deals which restrict the company steve jobs will be kicking himself for been so stupid to do these deals in Europe.A east end man recently said American don't understand strategy and competition as we do.Consumers require a choice of operators as converage varies aroung Europe.Conclusion Steve jobs tried to fix the price but competion beat him into the ground an opportunity missed.

By trickii on Tuesday Oct 20

O2 were never up to the job with the iPhone

I personally purchased an iPhone 12 Months ago on an 18 month contract with 02. All was well until the 11th month when the phone and SIM failed unfortunately for me I had just started a long stay in Eastern Europe, after many failed attempts to contact them by land-line , I decided to suspend any DD payments to them until I made contact and they resolved the problems with their hardware, 9 weeks later I received an email response telling me to pay my bill, no mention of what they could do to help with the failed hardware, in fact it turned out that there was nothing they could do or would do outside of the UK. So, lets get this correct, if you want an iPhone and you are a UK resident you can only get one exclusively from 02, they can't support you from anywhere else in Europe (Orange & Vodafone can) they offer an 18 month contract with a product warranted to 12 months, but if it does happen to go wrong they had no problem offering and upgrade and another 18 month + 6 month contract, again no support in Central or Eastern Europe. If I had been given the choice I would have bought from Orange they have branches all over the world so where ever you are with your "Mobile iPhone" your are close to quick support options. 02 never the less took this consumer choice away with their exclusive deal with Apple knowing full well they are a UK only company incapable of supporting a customer anywhere else in Europe. Oh and to end, they had a solution for me, I could get out of the contract by giving them £400 and keep the faulty iPhone & SIM. So in my personal experience, do think twice about using 02 if you travel abroad. They should never have had exclusivity in the first place, I expect thousands of customers forced to use 02 will now migrate back Orange and other network providers. "PULL YOUR SOCKS UP 02"

By Blogpartner on Tuesday Oct 27