Vodafone to offer iPhone in "early 2010"

 

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By Stuart Turton

Posted on 29 Sep 2009 at 09:32

Vodafone has announced a deal to sell the iPhone and iPhone 3GS in the UK, just a day after Orange inked a similar deal.

Unlike the Orange deal, customers hoping to run their iPhone on the Vodafone network will need to wait until "early 2010". Orange says it will be offering the iPhone before the end of the year.

The deal comes as O2's exclusive two-year distribution contract with Apple comes to an end, sending rival operators into a scramble to secure one of the world's most desirable smartphones.

Indeed, various reports have suggested that Vodafone's deal was only signed last night, with the company looking to ensure it doesn't lose any further customers to either Orange or O2.

As with Orange, Vodafone says it will announce details of tariffs and handsets closer to the release date. However, while analysts have suggested price cuts may be on the way, it seems unlikely we'll see the back of those 18-month contracts.

"The cost of the handsets means the contracts have to last longer, so operators would rather have 18 month contracts, or 24 month contracts," says Emeka Obiodu, senior analyst at Ovum. "Customers are more likely to ask how much does the tariff cost, how much does the device cost? That's where they'll compete."

Given Orange's imminent merger with T-Mobile, all four of Britain's big four networks could have access to the iPhone by the beginning of next year, a move that could drive down the cost of tariffs for what remains the country's most desirable phone.

O2 claims to have added one million subscribers to its network since it acquired exclusive rights to the iPhone, with Apple selling over 20 million units since launching the smartphone in 2007.