Currently, AT&T has exclusive rights to the Apple iPhone, from its release in 2007 to until 2010. AT&T is the second-largest telecommunications provider in the United States. Verizon remains on top.

Reports are popping up all over the web that AT&T is negotiating with Apple to extend the deal to 2011 (possibly more if Apple gives in to them). This comes to no surprise as the iPhone is selling like hotcakes across the United States. As of March 21, 2009, over 17 million units have been sold.

If Apple decides to partner with another service provider (with a different standard like CDMA or a different band), they possibly have to shell out additional money in order for the iPhone to work. On the other hand, AT&T is seemingly enjoying their partnership with Apple, because it has given them additional subscribers due to the iPhone frenzy.

Meanwhile, these extension negotiations aren’t really clear, because initial reports during 2007 say that AT&T has exclusivity over the iPhone for five years. But now they’re talking about just extending it to 2011.

What’s the catch here? Was the partnership between Apple and AT&T extended or shortened?

[via Art of the iPhone and Business Insider]