Apple's Walled Garden Will Hurt iPhone Innovation

from the barriers-to-entry dept

The release of Apple iPhone SDK got a ton of attention on the blogosphere. Personally, I found the announcement to be a huge disappointment, because the rules for getting applications on the iPhone are chock full of restrictions. TechCrunch notes some of the major ones: No VoIP over the cell network, no exchanging data between applications, no multi-tasking (third-party apps quit when you switch out of them). But the more serious problem isn't strictly technical, but contractual: the only way to get third-party applications onto the iPhone is through Apple's "App Store." And Apple plans to carefully monitor the apps available through the store. Apparently "porn, privacy-breaching tools, bandwidth-hogging apps, and anything illegal" are examples of what will be off-limits, but that's not an exhaustive list.

The problem here goes beyond the mere possibility that Apple might block apps that some users would find useful. The more serious problem is the effect that the approval process will have on developers. Given how vague the rules are (what counts as bandwidth-hogging?) and that Apple is free to change them at any time anyway, it's going to be risky for a developer to start developing an iPhone app that Apple might reject. TechCrunch wonders, for example, if Apple would allow an app to download songs from Amazon's MP3 store. To avoid a nasty surprise at the end of the development process, any serious developer will want to talk to Apple ahead of time, but negotiating the feature set ahead of time could delay the product by months.

Perhaps most importantly, these barriers are going to be a serious disincentive to casual tinkering. Some of the greatest applications on the Internet -- including email and the Web -- were developed by one or two guys without the support of a large organization behind them. They were able to deploy their applications because the Internet (and the ARPANET in the case of email) didn't have any kind of approval process. You could just install your application and start using it. On an open iPhone platform, the killer mobile app might have been developed the same way. But if a developer has to spend a lot of time arguing with Apple's iPhone bureaucracy, they're likely to give up and develop the app for an open platform like Google's Android instead.

Filed Under: innovation, iphone, sdk, walled gardens
Companies: apple

Amazingly Enough: People Don't Want To Pay To Watch Broadcast TV On Their Mobile Phones

from the who-woulda-thunk-it? dept

Back in 2004, with mobile companies left and right announcing plans to launch premium-priced broadcast TV services for mobile phones, some of us were wondering who would actually pay for such a thing? After all, you were talking about a tiny screen and people on the go who likely didn't have the time to sit and watch an entire TV program. Even more importantly, in the age of both time-shifting and internet video, it's increasingly less important to be able to see a TV program right now, when you can catch up later. Yet, that didn't stop many companies from throwing billions into such projects, spurred on by analyst reports predicting huge revenue to come. Yet, after all these years, it seems that mobile operators are finally realizing that people just aren't that interested -- especially if it costs extra. It's no surprise why mobile operators ignored all the warning signs. Analyst firms were singing the praises of mobile data services and warning any operator that didn't jump on the bandwagon that they'd be left behind. Yet, at some point, you'd think it would make sense for the mobile operators and the analysts hyping this stuff up to take a step back and see if what they were pitching actually had any value to users.

Filed Under: broadcast tv, mobile phones

Domestic Wiretapping Programs Should Not Be Secret

from the oversight-needed dept

A whistle-blower reports that an unnamed wireless carrier has provided a government facility in Quantico, VA, with unfiltered access to its core network. The whistle-blower says this gives the government direct access to private information such as text messaging and call records. He doesn't name either the company or the government agency involved. But a 2006 lawsuit featuring similar allegations named Verizon Wireless as the culprit. And Threat Level says that Quantico, VA, just happens to be "the center of the FBI's electronic surveillance operations." When asked about this, a Verizon Wireless spokesman wrote "What you're talking about sounds as if it would be classified and involving national security, so I wouldn't be able to find out the facts."

The idea that ordinary domestic surveillance activities are a matter of national security, and therefore immune from public scrutiny, is both wrong-headed and malicious. I guess the idea is that we don't want to tip off the terrorists about our surveillance programs. And obviously, information about specific targets needs to be kept secret. But the terrorists have to already know that most communications channels can be intercepted. Moreover, it's just not reasonable to expect that the broad details of our government's domestic surveillance activities will remain a secret indefinitely. Despite the secrecy, we're gradually learning about the scope of these programs. If terrorists didn't know their calls were being tapped five years ago, they certainly do now.

The problem is that because details about these programs (and information about abuses) dribble out slowly over several years, Congress never has the opportunity to conduct meaningful oversight of them. For example, this week we also found out that abuse of national security letters, which was previously only reported to have occurred from 2003 to 2005, continued into 2006. Of course, the administration says they've fixed the problem and that no more NSL abuses will occur. But that's what they always say when privacy abuses are uncovered, yet new examples keep popping up. The only way the abuses will stop is if Congress rejects the idea that domestic surveillance is immune from judicial and Congressional surveillance. The Bush administration needs to disclose the exact scope of its domestic surveillance activities so that Congress can have an open, public debate about the proper scope of government spying powers.

Filed Under: federal government, oversight, secrecy, wiretaps

Will Politicians Now Ban Walking While Talking On A Mobile Phone?

from the but-are-they-reasonable-risks? dept

In the past we've seen stories about hikers not doing a very good job preparing for a hike, figuring that as long as they have a mobile phone with them, they can always call for help should things go wrong. Some recent studies are also now suggesting that students tend to take more risks when they have a mobile phone. Of course, by "risks" the studies uncover two things: the first is that students are more likely to walk through certain areas late at night if they have a mobile phone than without. Whether or not that's a reasonable risk is unclear. If someone were attacked, then they likely wouldn't be able to call for help, though if they're already on the phone it could be useful. Of course, the report also suggests that if they're chatting on the phone in such an area, they may not be paying careful attention to their surroundings, making them more vulnerable. The second finding (of a different study by the same researchers) found that people talking on mobile phones are much more likely to cross a busy road in front of traffic than those not on mobile phones.

If this sounds familiar, it might be because we've all seen plenty of studies that point out if you're driving while on a mobile phone, you're also more likely to be distracted and drive poorly. Yet, while there are all these new laws to ban driving while yakking on your mobile phone, will we now see legislation proposed to ban walking while yakking on your mobile phone as well? At some point, people need to learn to take responsibilities for their own actions -- and if they're making riskier decisions while talking on a phone, it's fine to educate them, but that doesn't mean we need to create a law to ban each and every activity.

Filed Under: mobile phones, risky behavior, students

Audio Streaming: Probably Not What Your Mobile Carrier Had In Mind

from the so-much-for-that-unlimited-plan dept

Regardless of what you think of his ideas about net neutrality, Tim Wu is unequivocally right about one thing: Ziphone is downright magical. Thanks to it I've been in possession of an unlocked iPhone for the past few weeks, and I've been quite pleased with it. The variety of things this little gadget can do is truly amazing.

But for the mobile carriers the sensation it prompts is probably closer to worry. These newfound apps are bandwidth-hungry, and not only for WiFi packets. iPhone Bittorrent is a rather extreme example; EDGE-capable podcatchers are a more plausible threat. But perhaps most striking -- and therefore menacing -- is iRadio, a native application that brings Shoutcast-based streaming audio to the platform. It's easy to imagine a lot of users wanting this functionality and using it heavily, particularly given how often I forget that I've left it playing.

Of course, the percentage of jailbroken handsets isn't likely to ever get particularly high. But that won't be enough to stop these applications. For one thing, most observers think that the SDK -- which is expected to be announced today -- will allow developers access to both the phone's EDGE and WiFi capabilities. For another, streaming audio has already come to the platform without the need for any new code at all. FlyTunes offers a number of radio channels through an iPhone web interface; it works great. Similarly, WFMU offers a specialized domain for listening to the station on your mobile. More of these apps are almost certainly on the way.

It's true that this is just one device, but it's already setting a standard for what consumers expect from a smartphone -- and proving that users and savvy developers will use every bit of bandwidth they can get to. This demand will only grow as Android arrives and the carriers' grip on the mobile platform inevitably loosens. I'm hardly longing for the days of per-kilobyte data charges, but it seems likely that many carriers will soon be faced with choosing between a return to metering or a flood of customers upset by unexpected transfer caps on their allegedly-unlimited data plans.

Filed Under: audio, data plans, streaming, wireless

Why The Wireless Industry Is Moving To Flat-Rate Pricing

from the lower-transaction-costs dept

One of the recurring trends in high-tech markets is that as information goods get cheaper, they're increasingly sold as all-you-can-eat bundles rather than as individual units. This has been true of land-line telephone service for decades. In the late 1990s, we saw the same transition occur in Internet access. In this decade, we've seen the explosive growth of Netflix, which is an all-you-can-eat plan for video. Now it appears that cell phone companies are inching in that direction too, as Mike discussed last week. For $99/month, Verizon Wireless, AT&T, and T-Mobile will let you talk on your cell phone as much as you want. Sprint is apparently considering adopting a similar plan. This isn't actually all that new.

There are two fundamental economic forces at work here. First, metering imposes costs, both on consumers and on carriers. For carriers, there are the obvious expenses of keeping track of billing information, as well as the attendant support costs when an angry customer calls to complain about unexpected charges. For the customer, metering imposes the mental overhead of having to keep track of whether it's currently "peak" or "off peak" time, how many minutes are in his plan, whether he's currently "roaming," etc. A lot of customers are happy to pay a little bit extra for the peace of mind of knowing exactly how much they're going to pay each month without having to keep track of their calling activity. Second, the wireless market, like the phone, Internet, and DVD markets, is capital-intensive. Unless the network is already fully loaded, the marginal user costs wireless carriers close to nothing. As a result, metered pricing often causes under-utilization of the network because minutes are priced far above their marginal cost. Switching to a flat-rate plan can be economically efficient because it encourages greater utilization of the network without undermining the carriers' ability to recover their fixed costs. That has always been the rationale behind the free night and weekend minutes offered by a lot of cell phone companies over the last few years. They're just expanding it so it applies 24/7.

Filed Under: flat-rate, wireless
Companies: at&t, sprint, t-mobile, verizon wireless

How Patents May Make Multitouch Interfaces All Different

from the standards?-we-don't-need-no-steenkin'-standards... dept

When Steve Jobs first announced the iPhone a little over a year ago, he played up the fact that Apple had filed approximately 200 patents on some of the technologies included in the phone. This seemed a bit surprising because so many of the technologies found in the iPhone were already found elsewhere -- just not in as pretty a package. Also, despite all those patent claims, it hasn't stopped a whole bunch of companies from filing patent infringement lawsuits against Apple for technologies found in the iPhone. As we've pointed out, playing up the patents seemed rather pointless. Apple was going to sell a ton of iPhones no matter what, and even if others copied the basic technology, it's unlikely they would be able to get anywhere near the attention the iPhone would get (nor the sales). We've already seen that with the iPod. Despite competitors coming up with technology that some consider to be better, the marketing and positioning of the iPod keeps it on top of the market (by a large margin).

Wired is now pointing out another potential downside to Apple's patent claims. Despite there being a ton of work by others done on the concept of the "multi-touch interface," Apple's patents on the concept may force everyone else who uses multi-touch to come up with different multi-touch commands. In other words, rather than there being a common set of multi-touch commands, which would help widen the overall market, the patents may fragment the market, forcing everyone to learn a different set of multi-touch commands based on which device they're using. That's progress?

Filed Under: multi-touch, patents
Companies: apple

Mobile Operators Go Unlimited... Just As ISPs Insist They Need To Charge Per Byte?

from the please-explain... dept

There was a ton of press coverage yesterday over the fact that one-by-one, Verizon Wireless, AT&T and T-Mobile all announced $99 "unlimited" calling plans, ahead of Sprint who had actually been rumored to be gearing up to launch just such a plan. There were a few different storylines that could make this interesting. For example, it's not clear why it's such a huge deal when regional operator MetroPCS has been offering unlimited calling for ages (at a cheaper price). Hell, AT&T Wireless (when it was run by current Sprint CEO Dan Hesse) launched a $99 unlimited calling plan almost exactly a decade ago.

However, what really struck me as interesting is seeing all of these companies rush towards "flat-rate, all-you-can-eat" pricing, just as broadband providers are insisting they need to switch from flat-rate, all-you-can eat pricing to metered pricing, which some pundits are insisting is a better system. So why is it that one group of companies is moving in one direction, while the other is going in exactly the opposite direction? There are a few factors, but the biggest is the competition issue. Mobile operators are doing so because they feel forced to by competitive pressures (which is evidence in those three companies all announcing plans on the same day, in part out of worries that the fourth would beat them to it). As has been pointed out over and over again, the same simply does not exist in the broadband world in the US to the extent that it does in the mobile space. Some might also point out that capacity questions are different for both sets of providers. Mobile phone operators likely have fewer capacity issues to deal with as a result of unlimited calling than broadband providers do with unlimited internet access plans. However, mobile operators certainly are no strangers to capacity issues -- and they mostly dealt with it by (gasp!) investing in infrastructure so they could support unlimited plans.

Filed Under: all you can eat, broadband providers, flat rate, metered, mobile operators
Companies: at&t, sprint, t-mobile, verizon wireless

Palm Centro Hits Market Sweet Spot; Making Smartphones Affordable

from the not-dead-yet dept

We've been down on Palm Inc. for some time now, as well as its tired OS. Just see any of the recent stories we've written here on the subject. Palm, its handheld computers and its OS were once the darlings of the IT world, and universally loved by almost all users. Palm devices performed a few tasks very well in an era where that was cutting edge. Unfortunately, as times moved forward, Palm's OS did not, and today it performs too few tasks, and performs them not that well. But despite our normal criticisms, this post is about how great the release of the Palm Centro in Europe and on AT&T is for the market. Given the still-tired OS don't expect cutting edge data applications: the main winning feature of this device is the $100 price tag. That's important because not every smartphone wannabe-user is ready to deal out the $400 for the entry-level iPhone, and the Centro addresses the millions of potential smartphone buyers that fall below Microsoft's, RIM's, Nokia N and E series' and Apple's price points. Some of these consumers still want a keyboard, a PIM, e-mail service, a browser, and such, but with a lower budget. Centro will offer that, and will be joined by other future cheap smartphones with Symbian, Android, and other Linux derivatives. By the end of 2008, anyone who wants a smartphone will be able to have one (whether or not it's from Palm), and that's a big deal.

An interesting upshot of all this is that, as smartphones start becoming highly affordable, and anyone interested in owning one will do so, that group will also represent just about anybody interested in the mobile Internet and data services. If all these subscribers have devices that enable sideloading and direct installation of third party apps, the "walled garden" strategy will be increasingly futile. Carriers can still have the "carrier deck", and many customers will use it for convenience, but it will have to compete with off-deck solutions. It's about time.

Filed Under: affordability, centro, smartphones
Companies: palm

Motorola: Since We're Not Innovating, We'll Litigate Over Patents

from the suing-RIM dept

We recently noted the challenges facing Motorola, as it's been unable to continue to innovate in a way that customers desire in the handset business. Unfortunately, it looks like Motorola is choosing the all-too-common strategy among those who fail in the marketplace: they start suing for patent infringement. Motorola has now decided that since it hasn't been able to beat RIM's Blackberry in the marketplace, it's simply going to sue the company for patent infringement instead. Of course, as in any good patent nuclear war, RIM has fired back with its own patent infringement countersuit, meaning that both companies will be tied up with lawyers and judges, throwing away money that could have gone towards actually innovating and actually competing in the marketplace.

Filed Under: blackberry, innovation, nuclear war, patents
Companies: motorola, rim