Apple

Complexity climbs for cellular companies contemplating configuring Cupertino's cellphones

Yahoo's picked up a report from a Britblogger suggesting iPhones require more than usual from mobile operators. That blogger, nicknamed Telebusillis, linked to three iPhone video ads appearing, then relayed a mobile phone retailer reported in a shareholder video the iPhone requires Apple servers deep in the cellular operator's network.

Telebusillis speculates:

My personal guess is that these will be used for authentication and email services rather than doing any clever music or video content distribution. Music and Video distribution may come later with future models upgrading to HSPA capabilities. I think this is quite a clever move by Apple, because network services will justify a share of the ongoing revenues in much the same way as Blackberry has justified a share of the ongoing messaging revenues with the operators acting as collection agents. Also by building in effect a walled garden within GSM, Apple will keep a much tighter control on the operator network distribution model.

This also guards against the standard European market tricks of unlocking and reflashing phone operating systems to get around operator device tie-ins. {snip}

The 'walled garden' is popular with U. S. cellular companies, who limit user access to free services. They also try to sway Web sites to limit access; Google reported to CNET that cellular companies lobbied it to asking Google to stop people from accessing Google Mobile Maps from their cellphones.

How do you feel about cellular companies, subsidy locks, and walled gardens? How do you work around the limits imposed upon you by your cellco? Join the discussion.

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