UAE telecom regulator could block launch of all conquering gadget

Scores of consumers in the UAE have purchased first-generation iPhones since its launch last year – despite the device not being officially available in the country.

And people may not be able to purchase the officially released new gadget as the UAE telecom's regulator would prevent Apple from establishing an exclusive network deal in the UAE.

Apple's marketing strategy has largely been to only introduce the iPhone where the company has signed an exclusive contract with one particular telecom provider.

The Telecommunications Regulatory Authority (TRA) has said it would not allow any company to establish an exclusive right to iPhone services with either of the two licensed operators – etisalat and du – in the UAE.

A spokesperson for the TRA said the authority was in talks with companies that are already empowered to sign exclusive deals for the iPhone. And this situation could be "indefinite", according to reports.

"Since the other operator [du] came into action, we are careful to observe the major principle of fair competition in certain area, which includes iPhone service," he said. The spokesman would not confirm that the TRA was in talks with Apple directly and would only specify that the authority is in talks with "iPhone" firms.

The decision could mean that the iPhone would not be officially released in the UAE, despite being released in more than 70 countries.

Unauthorised iPhones, which have been unlocked by third party software, have been on sale in the UAE, but Apple has said that it will not support these phones in any way. Apple faces similar regulatory issues in France, where it requires telecoms to provide unlocked versions of phones they sell.

On a positive note, it appears Apple is moving away from exclusive one-carrier deals. On November last year – several months after the US release – iPhone was officially launched in the United Kingdom and Germany.

In the UK, sales are going through the O2 unit of Telefónica, while in Germany, it is offered through Deutsche Telekom's T-Mobile division.

Similar to the previous launch in the US, customers lined up a day in advance to get hold of the phone.

However, the initial business model, locking iPhone owners to one selected carrier, have been controversial in Europe. In Germany, a competing operator, Vodafone, brought the case to court claiming that the arrangement was against law.

On November 20, 2007, an interim court order resulted in the locked iPhone sales in Germany to be temporarily stopped. It is currently unclear how this situation will continue to develop in Europe. The iPhone launch in France a few weeks later, through the operator Orange, faces the same legal issues. Other countries who will pose the same problems for iPhone include Belgium, Italy, Finland and Brazil.

Subsequent announcements confirmed Apple was moving away from exclusive one-carrier deals.

On May 6, Vodafone said it has signed a deal with Apple to sell the iPhone in Australia, Czech Republic, Egypt, Greece, Italy, India, Portugal, New Zealand, South Africa, and Turkey.

Soon after Vodafone's announcement, TIM announced it would also be selling the iPhone in Italy, Optus said it would sell it in Australia and SingTel said it will sell the iPhone in India through its subsidiary, Airtel.

Apple could not be reached for comment.