One would think that Google Inc. (NASDAQ: GOOG) and Apple Inc. (NASDAQ: AAPL) would be friends. Google CEO Eric Schmidt sits on Apple's board and his company partners heavily with Apple's iPhone for Google's web products. That is, except when Google is trying to do an end-run around Apple partner AT&T Inc. (NYSE: T).
This is what it comes down to: Google Voice, the service that gives you a universal phone number that you have total control over (and even provides free text messaging!) was blocked by Apple's App Store, most likely at AT&T's request. After all, AT&T surely does not want customers bypassing its margin-heavy text messaging plans to use a free Google-provided solution.
As I wrote weeks ago, Google is directly challenging established telecom companies with some of its products in addition to being a threat to software companies like Microsoft Corp. (NASDAQ: MSFT), which finally partnered with Yahoo! Inc. (NASDAQ: YHOO) this week to stand up to Google's dominance.
But can Google really threaten AT&T? Sure it can. It sounds like small potatoes now, but if Google's strategy of turning telecom companies into "data pipe" providers that offer little value except for a connection to the internet, then telecom is really in trouble. Apple and AT&T, for now, are joined at the hip. Google and Apple have strong ties. But Google and AT&T are anything but friends.
The rules are changing in the telecom business, and companies like Apple and Google are in more control every year. As always, the established telcos will try to protect any areas of profit they have with every last breath. Google Voice is just the opening salvo -- there will be many more fights ahead.
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