UK carrier O2 will unlock iPhones once subscriber contracts expire, allowing customers to use the Apple device on rival networks. The decision by Telefonica chairman and CEO Matthew Key could preview how carriers respond to the shrinking number of exclusive iPhone contracts.
“Once the iPhone becomes available on other UK networks, we will allow O2 customers to unlock their iPhones, although of course they will still need to honor any outstanding contract period they have,” Key told the Times. “At the end of their contract period, they are entirely free to move to another operator.”
O2 has been the exclusive carrier selling the iPhone in Britain. Next year, Orange and Vodafone will also start selling the handset.
In the day of exclusive-only contracts, carriers were comforted knowing they would attract new customers seeking to buy the iPhone. However, as fewer and fewer countries have a single iPhone provider, carriers may need to compete on service and quality. In the U.S., AT&T has held the exclusive iPhone contract. Recently, rival Verizon has issued ads sniping at what it feels is inferior 3G coverage for iPhone owners.
[Via Times and Gadget Lab]
