By Aidan Malley

Tucked away amid discussions of AT&T’s pleased reaction to the iPhone’s results, USA Today surprisingly mentions that the American cellular service provider didn’t simply agree to switch from a monthly revenue sharing model to a heavily subsidized approach without first setting some conditions.

As struck before the original iPhone’s launch, Apple’s initial agreement for iPhone exclusivity had AT&T serve as the only US network for iPhones until 2009, or roughly two years after customers’ contracts began. But to greenlight the subsidy — which is described as "painful" and damaging in the short term — AT&T allegedly insisted on an extension of the deal until 2010, when T-Mobile and other carriers could start offering the device.

Read more at AppleInsider http://www.appleinsider.com/articles/08/08/01/att_may_hold_on_to_exclusive_iphone_deal_until_2010.html



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