[Corp. Watch] Corporations impede progress to maintain profits

[Corporation Watch]

AT&T Plays Dumb as iPhone Romance Hits Rocks

  by Timothy Karr
(Huffington Post, June 10) -- AT&T can't decide whether it loves or  
hates the iPhone. But for many iPhone users there's little doubt: They  
hate AT&T.

	The upcoming release of the new iPhone comes with some nasty strings  
attached. While Apple upgraded the device to deliver innovative  
features -- like multimedia messaging (MMS) and "tethering," which  
allows you to connect computers to the Internet via the device -- AT&T  
has blocked customers from using them.

	And many of the more than 5 million iPhone's devotees in the U.S.  
aren't happy. This anger became palpable Tuesday and Wednesday as it  
spilled over onto Twitter, driving the issue to the top of the social  
network's trending topics.

A Slap in the Face

	"[I] cannot believe how AT&T is shafting current iPhone and future  
iPhone customers," wrote Javs42. "First with the upgrade pricing, then  
the MMS & tether support."

	Many blamed AT&T's exclusive contract with Apple. "Apple please don't  
extend the contract w/ AT&T," DanMcneely pleaded.

	"This is ridiculous and a slap in the face to long-time loyal iPhone  
customers like me who switched from T-Mobile and the only reason was  
the iPhone," wrote an iPhone customer on the AT&T support forum.

	"AT&T sucks, period," a commenter named Dan said on the iPhone Blog.
	Multimedia messaging has taken off among users in Europe and Asia,  
who can send pictures and videos using a variety of smart phones  
available on the market. The new European iPhone, which will be made  
available via overseas carriers, will have the new features built in.

Ma Bell Nostalgia

	But in America, the iPhone is offered exclusively by AT&T, and for  
many that's the real problem. An AT&T spokesperson told the New York  
Times that "the delay has nothing to do with network issues," but  
declined to say why AT&T is slow to embrace cell phone innovation in  
the United States.

	Some clues might come from the company's long and turbulent  
relationship with any new technology that threatens its control.

	For decades, the old AT&T telephone monopoly controlled every phone  
on its grid and banned other companies from connecting innovative  
devices -- including answering machines, fax machines, cordless phones  
and early computer modems.

	A groundbreaking 1968 policy change -- known among tech wonks as the  
"Carterfone" decision -- pried open the device marketplace so that  
numerous new phone products could be introduced. This in turn spawned  
a flood of innovation in services that greatly benefited customers.

	That old monopoly was broken up. But the new AT&T has suffered a  
relapse, unilaterally deciding which applications make it onto the  
iPhone, and which don't.

	Both Skype (audio and video chat) and SlingPlayer (TV over the  
Internet) won't work over AT&T's 3G network, not because the  
technology doesn't function, but because the AT&T media empire is  
threatened by services that may strain its already shaky networks and  
compete with its other products.

	AT&T's lead lobbyist, Jim Cicconi, told USA Today, "We absolutely  
expect our [partners such as Apple] not to facilitate the services of  
our competitors."

Garden Walls Must Fall

	Applying the Carterfone rules to the wireless marketplace would spark  
a revolution in gadgets, while freeing up users to bring their  
handheld Internet devices with them from one carrier to another.

	But don't expect AT&T (and its many lawyers) to stand idly by as  
policymakers, public interest advocates and angry consumers try to  
free the iPhone from its walled garden.

	"Consumers are tired of wireless carriers impeding innovation instead  
of promoting it. Congress should unlock the mobile marketplace by  
putting an end to these exclusive deals," said Chris Riley, policy  
counsel of the non-profit organization Free Press

	"Cutting-edge wireless devices and applications have the potential to  
launch new industries and revolutionize everyday life," Riley said.  
"In this challenging economy, we cannot afford to allow AT&T or any  
other company to stand in the way of progress."