NTT In Japanese Apple Exclusivity Talks

Negotiations are underway between Japanese network giant NTT DoCoMo and Apple for the exclusivity of the iPhone in the Japanese marketplace, following the overturning of a European Court ruling that previously invalidated the enforcability of the agreements formed across the world.

The agreement would see NTT become the exclusive distributor of the iPhone when it’s launched in the Japanese market, in the same way that o2 owns exclusivity in the UK. As a result it is thought that the contract would be worth tens of millions, if not more over the next year, despite the fact that the exact terms of any agreement have yet to be disclosed.

According to Wall Street press today, Apple executive Steve Jobs has been meeting with representatives of NTT all day to thrash out the terms of the agreement, which looks likely to fall with NTT based on current circumstances, prior to the product’s official Japanese launch.

It is thought the terms of the deal would mirror those of exclusivity agreements already in place in the UK, the US and France and Germany, all of which lie with different mobile network operators and guarantee brand exclusivity for iPhone customers.

However the deals have been subject to criticism as a result of the long contract terms and prohibitive up front costs, without any competition within the market. On this basis, Vodafone looked to challenge the arrangements which was initially allowed in terms of injunctive relief, which was eventually overhauled.

NTT DoCoMo currently have over 50 million customers, which is roughly one half of the overall Japanese handset market. It is thought that should it manage to secure the exclusivity contract, it would potentially increase its market share even further over the coming twelve months.

Story link: NTT In Japanese Apple Exclusivity Talks