itodder

Is the Deal Between Apple and AT&T Anti-Competitive?

Most European carriers have solved this problem by competing for customers with quality coverage and service. A customer can buy a phone from anywhere and pick the network that is right for them. If they really love a carrier, they can buy subsidized phones which lock them into contracts as well, but that is at the customers choice. It is a system which values competition, quality, and consumer rights.

The US Telecom system has become increasingly monopolistic and exclusive agreements such as the multi-year lock of the iPhone to AT&T does nothing to encourage AT&T to improve their network, services, or rates. Which is exactly why they weren't ready with teathering and MMS when the new iPhone came out a few weeks ago. They didn't have to be. Customers who want an iphone are forced to choose AT&T.

However, if customers were able to buy an iPhone and then choose the carrier, you can bet that AT&T would be falling all over themselves to make newer services available on their network at prices which are much more reasonable to the customer.

There is little doubt that the new FCC will take a very close look at this issue and begin pushing carriers toward more open networks, products, and access for all customers.

The current situation simply isn't good for capitalism and it is the government's job to ensure a competitive business environment. Let's hope the get the job done soon.

cBeyond: Likely to Lose Even More Money

CBeyond is a good company, with a great product, which is a bit too difficult to explain to small business customers. As a result, they expend too much effort to get the sale. Telecom is changing and CBeyond does have the right product and support. They just may be unable to sell enough of it to survive the bad economy and tweak their sales model.

iPod Video Could Be a Game Changer

iPods are in the difficult position of having saturated the market. In order for Apple to continue selling units, they need to add features to the product line in order to entice people to upgrade. This really isn't about making converts any more, Apple already owns the music player industry. But the iPhone has proven that Apple can compete in telecommunications, games, browsing, and photography as well. Over the next several years, we should expect to see the iPod line move closer to the iPhone product set. It is a very smart move by Apple, but one which will not go unchallenged by manufacturers of all sorts of consumer products. This is an exciting time in the consumer product market!