iPhone balancing act: DoCoMo or SoftBank?

Apple is reported to conduct talks with Japan's two UMTS carriers on a subject of who will launch iPhone in Japan. KDDI au the second biggest carrier is missing from the talks due to its CDMA network standard, which is not supported by iPhone. Japan is poised to become a first country to enjoy 3G version of iPhone. However, it is not clear who will get the "right of first night" with iPhone. DoCoMo variant is more attractive for Apple as the carrier controls more than 50% of market in Japan. However, DoCoMo is notoriously known for its tight control of the handset ecosystem in Japan and is not willing to cede it to anybody else. Maybe, that is the reason why Apple is bringing SoftBank to the negotiation table - to make DoCoMo play by Apple's rules over the fear that the iPhone deal may be snatched by SoftBank. It looks like Apple needs to stand firm with its conditions of revenue sharing with operators. If it shows weakness now, operators in other countries will demand the same deal. The possible solution is a compromise between Apple and DoCoMo - Apple still get the revenue-sharing but with a smaller margin than it got in the US or Europe (and other operators won't necessarily know about the terms of the deal). Below are some headlines from today's news sources discussing the matter:







