As announced yesterday, we obtained details concerning the agreement between Apple and Orange for distributing the iPhone in Europe. However, the current drafted contract not being signed yet, it might still evolve. Let's first mention past issues: - Apple was concerned by the French law forcing carriers to SIM unlocked mobile phones 6 months after their launch to prevent monopoly and let users the choice of their carrier after 6 month exclusivity. This has nothing to do with the carrier, it is the law, and Apple knew it before starting negotiation with the second largest carrier in Europe. - Apple did not want to see the iPhone sold cheaper thanks to subscription-linked discount applied by default in most EU countries (customers can get access to high-end mobile phones at a interesting price if subscribing to a 24 months contract with the carrier. The discount applied by the carrier for making the mobile phone cheaper, is then pay back thanks to 24 months subscription fee) - Orange did not want to pay 30% return on subscription to Apple to compensate potential lost of revenue due to SIM unlocked iPhone after the 6 month exclusivity period. - Orange wanted to modify the iPhone to add the "Orange touch". According to our information, the agreement is as follow: Orange convinced Apple to apply a subscription-linked discount on the iPhone to prevent customers to purchase an iPhone and use it with another carrier. To compensate, Orange will prepay a large amount of iPhones, as well as pay Apple a substantial financial provision on the return on subscription. Orange agreed not to modify the iPhone. On its side, Apple agreed to reduce its return on subscription percentage to a reasonable level, and accepted that by the law the iPhone will be unlocked 6 months following its introduction in France (the iPhone rev2 will most probably be available at that time giving a new 6 months exclusivity for Apple and Orange). Based on current offers from Orange for high-end mobile phones such as the Nokia N95, one can predict that the iPhone should cost around 300€ with a 24-months subscription contract. It remains unclear if SIM unlocked iPhones will be already available at launch from Orange shops for current Orange customers willing to change their mobile phone while remaining with the same carrier. [translation by Linathael]

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