Is Exclusivity in Apple’s Best Interest?

The constant rumors of Verizon or Sprint acquiring the iPhone proved untrue.  Apparently, AT&T and Apple have a five year exclusive deal that does not end until 2012.  However, there are constant rumors of Apple’s displeasure with AT&T service and their inability to handle the technology and sales volume of the i-Phone 4G. Here is a list of AT&T debacles that has the industry and i-Phone consumers wishing for a change.

• AT&T just released the i-Phone 4G, however, AT&T’s system only supports 3G.  Sprint is the only carriers that offer a 4G network and Verizon is expected to roll out their 4G network very soon.  Apple refers to the new i-Phone has the i-Phone 4 because it will still use AT&T’s 3G network.  It is reported AT&T does not have any plans to launch a 4G network until next year or even later.

• Last week AT&T halted sales of the iPhone 4G due to its inability to handle the volume of pre-orders.  To date, AT&T has received 600,000 pre-orders of the iPhone 4G and reportedly had to start taking orders with pen and paper.

• AT&T experienced a major security breach that resulted in AT&T customers personal account information being exposed to other AT&T customers.  AT&T has not officially offered an explanation for the breach.  However insiders are stating the breach was due to an AT&T software update that went wrong.

• The week of June 7th, AT&T experienced another security breach in which a flaw in their system allowed the exposure of email addresses and phone numbers for 114,000 i-Pad owners.

• At last year’s SXSW Conference, thousands of iPhone users were unable to use AT&T services because the large number of iPhone users overwhelmed the system.

It should be noted that AT&T’s privacy and security breaches are exposing the company to legal liability.  The FBI is currently investigating the iPad security breach and the victims of the iPhone and iPad security breaches may have Invasion of Privacy Claims.  The law provides for the highest level of security protection for consumer personal account information.  It AT&T is proven negligent in protecting that information, they have a tremendous legal battle to fight.

Rumors are surfacing there may be an iPhone 4 with the Verizon network by the end of this year.  Of course no one knows the exact details of any agreement or deal with Verizon or any other carrier, but it does make you wonder if Apple is finally ready to cut its ties.  One thing is for sure, customers want another carrier to offer the iPhone asap.  Considering the gains the Android phones are making in the market, Apple may give the customers what they want.

About the Author
Latoicha Givens is the founder and a member of the firm Phillips Givens, LLC. Ms. Givens practice includes represention of start-ups, small, and mid-sized businesses in intellectual property matters, specficially, trademarks, copyrights, and licensing issues. She is the author of IPLAW101.com, a blog covering Intellectual Property issues specifically trademark law - trademark registration and infringement; Domain Name Disputes: Cybersquatting; Licensing and Intellectual Property issues in New Media.
See all posts by Latoicha Givens.