According to USA Today, Apple (NASDAQ: AAPL) and AT&T (NYSE: T) are expected to saunter up to the Federal Communications Commission (FCC) and explain why they will not allow Google's (NASDAQ: GOOG) free Google Voice application on the iPhone. The problem is that Google is throwing stones while it lives in a glass house. Let me explain here -- Google has done the same thing to Skype when it blocked it from use with Google Android. This is truly the pot calling the kettle black, as Google is getting a taste of its own medicine. The question is, why can't these kids get together and play nice?
Simply put, they will be giving their competitors money. The problem is that carriers and providers have woven a tangled web that only traps customers because the bickering has not resulted in a price war. In fact, it has resulted in what some may consider price gouging. Every company is trying to force its will on every one of its competitors, but that is what Friday's little meeting with the FCC is supposed to be about: protecting the consumer while examining exclusive deals between handset makers and telecom companies.
At least, the FCC seems to have the right idea. The companies have forgotten that they are not in the job of trying to continually one-up each other for their own sake. They should try to best each other in order to make the best product for the consumer.
The telecom companies are trying to do away with each other's technology while forgetting that the most important part of the equation is a consumer that can afford the offered technology. How can the family on a budget afford the asked price for an iPhone, or the latest BlackBerry, or the latest Palm? I thought the point of competition was to make high-quality products affordable for the consumer at large. I guess I was wrong...
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Reader Comments (Page 1 of 1)
8-21-2009 @ 10:11AM
beanspants said...
Have you ever tried to comparison shop mattresses? Have you ever noticed that even though many stores carry the same brands, they are not directly comparable because each is made and named specificially for that store, and each is ever so sligthly different.
What does this have to do with telco? the gov't only cares about competition in popular industries. The rest can be as anti-competitive as they wish to be.
8-21-2009 @ 12:19PM
Stock Lurker said...
Hey beanspants, the cell phone spectrum is owned by the US public and licensed to the cell phone companies by the FCC so they get to tell cell phone companies what they get to do with the spectrum.
Its basically like leasing out a national park to a logging company. The government gets to tell the loggers how they can log and who else can help them etc.
Funnily enough this has to do a lot with interstate trade so it is covered by the constitution.
8-21-2009 @ 12:39PM
j0nd4m4n said...
Based on Apple selling 1 million units of iPhone 3GS in 3 days, each with a new/renew contract, I would say the consumers see the iPhone is justified for its asking price.
It is not a surprise that Apple and ATT block Google voice, this application give you a free number and you can send and receive text messages for absolutely FREE. ATT currently offer three texting plans for the iPhone: $5 for 200txt/mth, next higher plan is $17 for 1500txt/mth, the highest one is $20 for unlimited text/mth. See any pattern here? It is helping ATT to sell this plans. If I were the CEO of ATT, I would have requested apple to block it too.
If you buy a phone from ATT and add the unlimited data plan, you will get unlimited text messages. Oh, except the phone that people want: iPhone and Blackberry.