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Apple is pretty much admitting this: the reason for the exclusive deal with AT&T is so that Apple can share in that revenue. That means that the phone's economics don't work out as a stand-alone device (e.g. one that you can use with any carrier just by plugging in the chip for that carrier, like other GSM phones). It's not subsidized as much as the cheap phones that your carrier gives you for a steep discount in exchange for a signup, but they are subsidized.
That means that the UK law probably applies.
Nope, it isn't subsidized. What you describe is revenue sharing. In order for the iPhone to be considered subsidized, the consumer must be paying less than retail for the device in exchange for a contract. That condition doesn't apply at all. Most likely the revenue that is being shared would normally go into a subsidy, but sharing revenue with Apple certainly doesn't make the handset subsidized to the consumer.
Not to mention the fact that the deal Apple has with AT&T doesn't mean anything in the UK, it's what the deal with the UK cellular provider says that matters there.






Member since:
2005-07-06
The law in the UK isn't as clear cut as you say. It says that you need to allow an unlock after a subsidized contract ends. Since the iPhone isn't subsidized it isn't clear that the law applies to it at all.