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Hoping to pick up an unlocked iPhone? You may be able to buy one SIM-free on Play.com, but don’t hold your hopes out for a truly unlocked iPhone anytime soon: AT&T, which has dibs on the iPhone in the US, has let slip that Apple is in talks to to extend its exclusivity, and where one goes the rest are sure to follow.

Inside sources say that AT&T is in discussion with Apple to extend its deal with the iPhone from 2010 into 2011, since the iPhone is proving to be such a cash cow for the network, which trails behind the bigger Verizon in the US.

It’s hardly surprising, since the iPhone is pulling in new customers for AT&T (1.6m in the last half of 2008 alone), but it does underline the fact that a non-exclusive, unlocked iPhone over here is unlikely anytime soon.

You can bet that O2 is seeing similar stats, and an unlocked iPhone could see many of those new subscribers taking off to pastures new with cheaper grass or better reception.

Now with a new iPhone on the cards, the question is, just how much is O2 prepared to pay to stop an unlocked iPhone 3.0 from happening?

Out Now | £from free | Apple (Via TechCrunch) (Available at Apple)

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  • Alex

    lets hope not too much. It’s us who will end up paying for it

  • Ben Sillis

    Possibly, but I wouldn’t be too worried in this case. Phone networks go to extraordinary lengths to get flagship smartphones cheap/free on contract. The iPhone 3G is already free on contract in the UK. Even on a 24 month £35 a contract, it still only ends up costing £240 more than the jailbroken iPhone is on sale for on Play. In other words, O2 is taking just £10 a month (the same amount as they might expect off a PAYG user) and for that providing bundled data, calls and texts – in theory!

  • yashin

    That’s a real shame, I’d jump from O2 in a second if it wasn’t for the iPhone. There’s better wi-fi coverage in Edinburgh than O2 3G!

  • Poppa P

    can somebody tell me If I buy the iphone from the Apple Store are they sim free?
    I looked on the Apple store on line but can not see if it has to have a contract.

  • Ben Sillis

    No, the UK Apple site only sells O2 Pay As You Go iPhone 3Gs. O2.co.uk sells iPhone 3Gs on contract on the network (Free on £35 a month for 24 months), which is the way to go, if we’re honest.

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