Why would Apple go with an exclusive service provider with this product? They didn't go with a 5 year exclusivity deal with just 1 music major label - Jobs nailed 'em all. Maybe he tried that with the wireless majors but they all had similar offerings in the works??? Or perhaps the deal he wanted would have caused contractual conflicts with other carriers' current handset suppliers.

I agree, Paul. And five years is a l-o-o-o-o-ng time in the gadget business, Apple magic or no Apple magic.

Pls dont forget there are more than 100 countries worldwide. It really is funny to read these USA centric views. I can assure you there are cellphones in those countries with larger installed bases. 5 years from now the iPhone will be a compltely different gadget.

Exclusive phone deals are commonplace in the wireless space. I am sure Verizon took a shot at the deal and missed. As the previous commenter said, the world is a large place. Not landing Verizon is hardly the death blow. GSM is still a much better bet than CDMA for young phone vendors targeting the world market. Time will tell.

In 5 years, many people will already have gone through 2 generations of iPhones. It is a long time. The Razr was hot 3 years ago; it is almost free now.

I hesitated to post a comment until I could confirm my memory--gosh, how that important tool wanes. I had some recollection of an interview with either Jobs or Schiller where he described the Cingular 5-year exclusive covering only the current iPhone model. The interviewer did not ask for clarification.

I have searched on Google Video/YouTube, but I can't find the interview.

Anyway, AppleInsider has a post today about a PiperJaffray that suggests the same thing ( http://www.appleinsider.com/article.php?id=2452 ). Here's the important part from the PiperJaffray report.

Will The iPhone Be Available Through Other Carriers?
Apple and Cingular have inked a multi-year exclusive contract for the iPhone. However, it is unclear whether this deal applies to this iPhone model only or all future models released throughout the duration of the contract. We believe Apple will release new iPhone models quickly (as the company has with the iPod) and these devices will eventually be open to other wireless carriers, possibly even before the Cingular contract expires.

Why would Apple go with the exclusive deal? Because they wanted to do things that required tie-in's to the network beyond current capabilities. For example, the visual voice mail - on a standard network this wasn't possible. Not that it's something completely amazing or revolutionary (like a lot of what Apple does, it seems almost like a no-brainer AFTER they do it) but for a mobile phone maker to get the carrier to add a capability to their network, they have to give them something and exclusivity is that carrot. I'd guess other features along these lines will come too. Of course the other thing is that Jobs/Apple are control freaks. They are incredibly focused on user experience (and in many ways this is their biggest strength) and to be able to have more control over user experience, they needed input on the network beyond what mobile manufacturers have traditionally had.

While we (at Verizon Wireless) won't comment on our competitors' strategies, we DO place a high value on our customers and provide what we believe to be the best possible overall wireless experience. If we had given ownership of our network and wireless product to another party, we would be unable to ensure that the products and experience are up to the Verizon standards – and that is what we always strive for.

JNels

To the gentleman from Verizon, stop drinking the cool-aid. You guys just dont get it.......

Yeah, Apple Phone works. Just like they did with Apple TV. Still,
they’re unlikely to change it now.

http://www.iphone-converter.org/