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Broadband & Mobile Featured Article
October 08, 2007
Apple iPhone May Not Make Holiday Rush in France
By Tim Gray TMCnet Web Editor
When Apple (News - Alert) said last month it would have its iPhone ready for the French market by the holidays, the computer company may have underestimated some potential difficulties with doing business in that country.
Orange, which is owned by France Telecom (News - Alert), won the exclusive rights as the sole provider to offer the iPhone, giving it the same agreement Apple has used with other service carriers.
In the United States, AT&T (News - Alert) is the exclusive provider of the iPhone and in the United Kingdom it is O2. The Cupertino, Calif.-based company announced yesterday that it selected-Mobile in Germany to carry the phone.
However, according to French newspapers, the deal with Orange, negotiations with the French telco are running aground because they do not want the same bizarre lock-ins which have been seen over the pond.
French consumer laws specifically prohibit the dependent sale of a product and a service which means that Orange will have to sell the iPhone (News - Alert) with and without subscription. Apple is not happy with that and, since it has refused to let Orange flog a subsidized iPhone as part of a package, there is little reason for anyone to sign up for an Orange deal.
Although Orange continues to insist the deal is still a go, according to the report, Apple is not happy about the way that things are going.
In fact, no analysts suspect that France could become the only country place where the iPhone does not have the locked restriction.
If the deal falls apart it could be a big blow for the French telecom. The exclusive rights can mean a lot of business that has already brought AT&T one million iPhone users in less then three months in the United States.
Orange has not committed to price for the iPhone in France, however it is expected to be in line with costs in Britain and Germany, which is $550.
Now it is being reported that Nordic telecommunications operators TeliaSonera and Telenor (News - Alert) both in active talks with Apple regarding a deal over the iPhone.
Tim Gray is a Web Editor for TMCnet, covering news in the IP
communications, call center and customer relationship management industries. To see more of his articles, please visit Tim Gray’s columnist page.
Orange, which is owned by France Telecom (News - Alert), won the exclusive rights as the sole provider to offer the iPhone, giving it the same agreement Apple has used with other service carriers.
In the United States, AT&T (News - Alert) is the exclusive provider of the iPhone and in the United Kingdom it is O2. The Cupertino, Calif.-based company announced yesterday that it selected-Mobile in Germany to carry the phone.
However, according to French newspapers, the deal with Orange, negotiations with the French telco are running aground because they do not want the same bizarre lock-ins which have been seen over the pond.
French consumer laws specifically prohibit the dependent sale of a product and a service which means that Orange will have to sell the iPhone (News - Alert) with and without subscription. Apple is not happy with that and, since it has refused to let Orange flog a subsidized iPhone as part of a package, there is little reason for anyone to sign up for an Orange deal.
Although Orange continues to insist the deal is still a go, according to the report, Apple is not happy about the way that things are going.
In fact, no analysts suspect that France could become the only country place where the iPhone does not have the locked restriction.
If the deal falls apart it could be a big blow for the French telecom. The exclusive rights can mean a lot of business that has already brought AT&T one million iPhone users in less then three months in the United States.
Orange has not committed to price for the iPhone in France, however it is expected to be in line with costs in Britain and Germany, which is $550.
Now it is being reported that Nordic telecommunications operators TeliaSonera and Telenor (News - Alert) both in active talks with Apple regarding a deal over the iPhone.
Tim Gray is a Web Editor for TMCnet, covering news in the IP
communications, call center and customer relationship management industries. To see more of his articles, please visit Tim Gray’s columnist page. 
