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France Telecom In Talks With Apple; Vodafone’s Portugal iPhone Deal Not Exclusive?

By Dianne See Morrison - Wed 07 May 2008 05:40 AM PST

France Telecom (NYSE: FTE), owner of the Orange network, is in talks with Apple (NSDQ: AAPL) to sell the iPhone in other countries, according to the company’s CFO Gervais Pellissier. Dow Jones reports that Pellissier revealed that the discussions were for more than “just two countries.” He also said that France Telecom was “pleased with the success” of the company’s exclusive deal with Apple that has another two and a half years to run—quashing recent rumours that the French group had balked at Apple’s supposed insistence that they slash iPhone prices to boost sales. Pellissier also said that he expected a 3G iPhone to boost sales in France, where Orange has sold over 100,000 of the device.

Yesterday, Vodafone (NYSE: VOD) announced it would be selling the iPhone in ten countries. News later surfaced that its deal in Italy is not an exclusive one, after Telecom Italia announced they too would be selling the device. Thomson Financial, meanwhile, picked up a story today from Portuguese newspaper Diario de Noticias, which reported Tuesday than Vodafone’s Portugal deal is not an exclusive one either, though it did not cite a source. Portuguese networks Portugal Telecom and Sonaecom are reportedly still negotiating with Apple over distributing the iPhone.

In Australia Vodafone declined to say whether the deal to sell the iPhone was exclusive, reports the SMH, and it’s a short jump to the conclusion that it is therefore not exclusive. “Mark Novosel, telecommunications market analyst at IDC, said the fact that Vodafone hasn’t announced whether the deal is exclusive indicates the iPhone will be sold by all carriers...He said it is likely Vodafone will sell the iPhone at a discount and lock it to its network, in which case Apple would sell an unlocked version - capable of running on any carrier - through its own stores.”

Posted in: Companies, Apple, Operators, Orange, Vodafone

Tags: gervais pellissier, france telecom, iphone

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