Nortel Networks has rejected Research In Motion’s bid for the wireless infrastructure assets Nortel is unloading as part of bankruptcy proceedings. RIM said Monday night that it intended to offer $1.1 billion for Nortel’s CDMA and LTE businesses, but was told it could do so only if it agreed not to bid on other Nortel assets, something it had intended to do.
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There’s no question that AT&T’s iPhone-exclusivity deal has been a strategic coup for the carrier. Since its debut in 2007, the device has drawn millions of new customers to the company and done much to revitalize its brand. But the carrier’s deal with Apple won’t last forever, and as soon as it expires, the telecommunications giant will face slowing growth and worse, defections.
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Earlier this year, Christine Varney, the new antitrust chief at the Department of Justice, said she planned to return the DOJ to a policy that led to landmark antitrust suits like the one against Microsoft in the ’90s. And she delivered on that promise in short order. Since her confirmation in late April, the DOJ has seen a sort of Trustbuster renaissance. It has begun inquiring into potentially anticompetitive recruiting practices in Silicon Valley. It’s opened an investigation into the Google Books settlement. And now it’s scrutinizing cellphone exclusivity deals, like the lucrative one between Apple and AT&T.
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It was like the Golden State Warriors opting to pass on Larry Bird in the ’78 draft. Verizon Wireless was offered the chance to be the exclusive carrier of Apple’s iPhone in 2005, but refused it, put off by Cupertino’s “rich financial terms” and other demands. Apple had reportedly asked for a rich percentage of the monthly services fees as well as complete control of iPhone distribution. Four years and 13.7 million iPhones later, Verizon is reportedly reconsidering that assessment.
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The cable industry may have finally settled on a wireless strategy–Sprint’s. The Wall Street Journal reports that Comcast, Time Warner Cable and Bright House Networks are discussing a WiMax partnership with Sprint and Clearwire.
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