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AT&T: Dear Apple, Please Let Us Have The iPhone All To Ourselves For Another Two Years

Well, here's a shocker. We finally learn that AT&T's exclusive distribution deal with Apple expires in 2010. That would be good news -- if AT&T weren't already trying to extend its exclusive iPhone deal until 2011.

Until now, both AT&T and Apple have kept mum on how long the iPhone exclusivity deal between the two companies is. Many have guessed that it was two, five and even 10 years. Turns out the real number is three. The terms of the original pact gave AT&T exclusive rights to sell the iPhone in the U.S. from 2007 until 2010. The exact date in 2010 wasn't disclosed.

If AT&T CEO Randall Stephenson has anything to do with it, AT&T will hold onto the iPhone at least until 2011.

The Wall Street Journal reports that AT&T is already in discussions with Apple to extend the contract. Who can blame AT&T? The iPhone has been a bona fide hit, with millions of new customers switching to AT&T's service to get their mitts on it.

AT&T's exclusive distribution rights means other wireless network operators -- i.e., competitors such as T-Mobile -- won't be able to sell the iPhone until the contract expires. The iPhone is already available from other network operators outside of the U.S.

By being the sole source for the iPhone, AT&T believes it can keep a competitive edge, as the iPhone is still the phone to beat.

Will Apple agree? What can AT&T offer it that other carriers can't? Well, 3G in the U.S., for starters. If the iPhone is to access T-Mobile's 3G network -- which is still limited compared to AT&T's -- Apple would have to create a new version of the device with 1700MHz AWS support. That'll cost Apple money.

AT&T is still the nation's second-largest wireless network operator. The roaming partnerships it has with other network operators the world over are also a benefit for Apple.

If you were Apple, what would you do?

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