Unlock iPhone’s potential
The news just broke, the UK iPhone franchise has gone to 02, which is owned by Telefonica of Spain. Sales will begin “shortly.â€Â This strongly suggests a 3G iPhone will ship somewhere before the end of the year.
iPhone in UK goes to Telefonica’s 02 at European iPhone News
I’ve written a story for iPhone Unlocked about what Apple’s choice of European carrier will mean for iPhone users in the US. The bottom line:
Read the full article for more analysis.
On a related note, Crave UK considers which UK carrier has the best shot at the iPhone.
I’ve been covering European iPhone developments in my companion blog because I think they give us hints about the future of the iPhone in the US, particularly with respect to 3G. The bottom line:
The big question is, when will these 3G iPhones be available in the US?
By way of background, at this point, everything about the European iPhone is still a rumor, though a rumor that major mainstream publications feel comfortable repeating. It seems likely that O2 will get the iPhone franchise in the UK, and T-mobile will land the iPhone for Germany. Both are expected to debut the device by November. There is also talk that Orange will get iPhone and France, and O2′s parent company, Telefónica will take a Spanish exclusive.
First, the current US iPhone is a quad-band phone, which means its voice features could work on European GSM networks, but it’s Internet features rely on EDGE technology (and WiFi, of course). EDGE is not widely deployed in Europe. O2 apparently has little or no EDGE infrastructure in the United Kingdom, having made recent investments in a decent 3G UMTS network. It appears the same situation is true for T-mobile in Germany, who has largely upgraded their previous installation of EDGE technology.
The real question is whether EDGE support can be added as cheaply to 3G networks as it was to 2G networks deployed in the last ~8 years. Apple will have to release 3G phones in Europe within 6 months unless European carriers make major network updates to support the iPhone.
This raises the question of when we will see 3G phones in the US. I’m sure that unlocked European 3G European iPhones they will arrive via the gray-market in no-time. UK carriers must offer unlocking at a reasonable price (Typically the equivalent of~$30-40US), though they can always lock people into long-term contracts as a condition of selling them an iPhone.
Whether Apple starts selling 3G iPhones in the US in a similar 6 month timeframe depends a lot on the costs of hardware that can support both 2.5G & 3G. Apple will eventually have to sell phones that support both in the US so they transition seamlessly as AT&T builds out its 3G network. If the costs of these phones aren’t significantly more than single technology phones, the it might make sense for Apple to make and sell a single global iPhone model in order to recognize the best possible economies of scale.
The big caveat to all of this is that none of the European deals are official. But it seems likely we’ll be able to get 3G iPhones that work in the US within 12 months through either official or gray-market channels.
Please leave a comment if you have further insight.
It sounds like we could be moving closer to a European iPhone announcement in the next few weeks, with the phones shipping in late fall or early winter. What’s intriguing about this is that the phones will almost certainly by 3G, which raises the possibility that 3G-capable could arrive in the US at the same time, either through the grey-market, or through official channels.
Press reports iPhone deal with T-Mobile in Germany at European iPhone News
Articles in the european press suggest the deals with Deutsche Telecom’s T-mobile for German coverage, and there are rumors Vodafone in the UK will be announced soon, with the phones debuting in the late fall or early winter.The Rheinische Post said T-mobile will be offering the handset in Germany on November 1st for about €450 ($613/£304). Reuters also has the story
The rumors about an iPhone announcement with Vodafone still continue to churn. Though it just seems to be a rehash of the old rumor that the european iPhone would be announced last Monday.
There is some clear skepticism going around about the rumor that Apple will be annoucing plans for the European iPod release this Monday. For example:
Even if, as they state, the phone wouldn’t be available in Europe until January 2008, it’d be suicide for Apple to make such an announcement. American iPhone sales would immediately drop dead.3G Euro iPhone Announcement Monday? No Bloody Way! « Mike Cane’s Blog
I share his skepticism, but not to the same degree. The iPhone is certainly popular amongst geeks who will devour every bit of news about it, but clearly, with the press coverage it’s received in the US, the market appeal is much broader. Most of those people aren’t going to give a half a damn about what Apple does in Europe.
For another thing, the people who are buying the first release of the iPhone are people who don’t want to wait 6 months or more for the next version.
A Eurpoean announcement of a more capable and flexible phone could create some ill will in the US, and might depress sales somewhat, but it won’t kill them. By announcing soon in Europe, Apple can build on the buzz from cross-Atlantic news reporting.