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Will Philippine Telcos Agree to Apple’s iPhone Terms?

US mobile operator Verizon rejected a deal with Apple to carry the iPhone. So Apple went to Cingular, their competitor.

According to the story, Apple wants a share of the monthly subscriber fees and tighter control over the subscribers. That won’t work here in the Philippines. Even if hypothetically, our mobile operators gave Apple a share of their revenue, how much would that be?

This looks like Cingular will have a special “iPhone plan.”¬† But the Philippines is prepaid country – look how many people carry high end phones but use them on prepaid.
So, if the iPhone sells in the Philippines, would it be a success under these conditions? Or will Pinoy iPhones be gray-market unlocked units?

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  • Dusty

    Ha Ha Ha Ha! Asking the Philippine telcos for a share of their subscriber’s monthly fee would be like asking a bully for lunch money!

    That’s so funny.

  • But what if subscribers are willing to pay an extra “iPhone service fee?” Like with BlackBerry, I think. There are some server-side components, like the visual voice mail.

  • banana

    Looks like Apple really wants to milk every cent possible out its new product, but with a scheme like that I really doubt it would sell well in our country, and in most other countries as well. The phone is already expensive (Still at $600 WITH a 2 year contract with cingular, imagine how much that would translate to Php if sold without any contract) and they still want to shared revenues with teleco, thats outrageous.

  • keep wishing. the only way to get it for the phils is through the gray market.

    cingular did say that the iphone will be unlockable by the “bad guys” so why even bother going through providers.

    $600 for a phone with a 2 year contract means you can buy the phone without a contract for about a couple hundred dollars more.

    I say Apple should’ve come out with a $1200 phone that has at least 30GB of solid state HD space… and I’d still buy it… even if it were $1500.

  • iBOY

    Apple’s scheme is appropriate for the way the U.S. does business, even then the I think it’s just a BS scheme! (In local terminology that’s BAKA SAKALI!) ^_^

  • Check the After Mac post below this one. He thinks Apple will have to sell the iPhone unlocked here.

  • The question is, if none of telco will carry Apple’s iPhone, is Philippines that big market for Apple that they will bend over backwards for the local telco? If it is, now tell me why iTMS is not available here.

  • wont work… compatibility issues.. usability.. etc.

  • jan2x, if I got it right, iTunes Music Store is not available in the whole of Asia excluding Japan. This is for credit card fraud and piracy concerns.

    In the case of the iPhone, the local cellco will act as the “collector” for Apple.


    i think the local telcos will agree whatever terms that apple will give them.. the hype over that product is so high, that’s it crazy for them not to jump in.. besides, we all know that Filipinos are addicted to (new) gadgets.. most of us will buy anything even if it costs us our 3 months salary LOL..

  • jet

    i really like this phone already but if its gonna be locked up on a plan for two years…i cud still wait..im sure new phones will be coming out soon enuf.

  • If Philippine telcos won’t budge in on Apple’s Terms and Contract, there are crackers out there who are dedicating their time and effort to unlocking this phone making it open-line. I’m sure in no time, iPhone will be open and Pinoys will enjoy their prepaid lifestyle. I just hoped it won’t reached that long before they could cracked it or whatever firmware version could do this. Other than that, well see on how this unit will face our country. 2008 for Asia, so I guess that will be the waiting period for us Pinoys. But I’m still hoping for the open unit though. lol. rofl. lmao.

  • If i call the shots in any telco, I will only agree to terms if there is exclusivity – the payback there is the image and reputation — not really the numbers (gravy) since hacking will be a concern and open lines is a market reality – it will eventually erode any exclusivity deal.

    From apple’s end, it might make more revenue sense to allow an unlocked version and sell to everyone – in a sense integrating selectively with the networks only on select features (re: voicemail) if necessary.

    The software delivery via itunes can geographically segregate consumers — hence updating particular features according to location or telco assignment is not a big implementation challenge. Telcos can each be creative in their own and offer software bundles separately using the same phone model. So all telcos can play on the same platform (iphone) and still apple wins.

    Remember, it must make financial sense for both sides and nothing makes more sense than when everyone’s on board.

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