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  • Czech Carrier Ditches iPhone, Blames Apple's 'Business Terms'



    Czech carrier Telefonica Czech Republic (TCR) is refusing to carry Apple’s iPhone 4S and is dropping all prior iPhone models according to Bloomberg.

    TCR’s move is in response to unfair “business terms.” The terms in question are most likely the industry leading subsidies Apple requires from carriers to sell their devices. Obviously “business terms” is a loaded phrase, but Sprint’s CEO revealed Apple’s subsudies are as much as $200 higher per device versus their competitors.

    TCR isn’t a small player in the telecom world either, they’ve been one of Apple’s biggest supporters up until this announcement. The company brought the iPhone to Spain and the U.K first with O2. However, competition from Vodafone and T-Mobile in the Czech Republic could have spurred the decision as well. Especially if both companies, who started selling the iPhone 4S late last month, received better subsidy deals.

    From a business standpoint TCR is a bit of a Catch-22. Either you bite the bullet and sell the iPhone 4S hoping the initial cost is paid back via new subscribers and subscription fees, or you nix the device and hope the savings is enough to outweigh any potential gains of carrying the device.

    Sprint’s decision to carry the iPhone 4S and essentially bet the entire company on a single phone and phone maker represents the antithesis to TCR’s move. It’ll be interesting to see which company ultimately reaps the greatest benefit.

    Source: Bloomberg
    This article was originally published in forum thread: Czech Carrier Ditches iPhone, Blames Apple's 'Business Terms' started by Phillip Swanson View original post
    Comments 11 Comments
    1. Lombardo Joe's Avatar
      Lombardo Joe -
      Glad I'm in 'merica.
    1. KraXik's Avatar
      KraXik -
      So will this effect other Telefonica companies?
    1. dennder's Avatar
      dennder -
      I live in CZE, the only thing i can say - "FU O2".It's almost monopolistic stance, terrible customer support, unclear end user agreements, unfair prices etc. made many people really angry. And they'r speaking of "unfair business terms". Mwuhaha
    1. tabaks's Avatar
      tabaks -
      Quote Originally Posted by Lombardo Joe View Post
      Glad I'm in 'merica.
      Untrue.
    1. sziklassy's Avatar
      sziklassy -
      Quote Originally Posted by tabaks View Post
      Untrue.
      LOL what? How can you make this statement?
    1. Stumbows's Avatar
      Stumbows -
      You know what Phillip, you really know how to write a good article even if there's not a whole lot of meat in the story.
    1. delusion950's Avatar
      delusion950 -
      They should stick with Android it'll bring them more $$
    1. Tucnepo's Avatar
      Tucnepo -
      Quote Originally Posted by Stumbows View Post
      You know what Phillip, you really know how to write a good article even if there's not a whole lot of meat in the story.
      Not every piece of news is worth reading in the paper either
    1. Lombardo Joe's Avatar
      Lombardo Joe -
      Quote Originally Posted by sziklassy View Post
      LOL what? How can you make this statement?
      THANK YOU, lol. I didn't know how to respond to that without being sarcastic and rude. I was wondering the same.
    1. Cer0's Avatar
      Cer0 -
      Bold move when other companies have put up fights to get it.
    1. firetwuck's Avatar
      firetwuck -
      Customer service is so anti-Mac also. I had trouble getting a data-card working and they didn't want to help because I had a Mac. Even thought the card had Mac drivers.