Last Updated Aug 4, 2009 9:48 AM EDT
What a stupid move by AT&T; not only will this cause all kinds of regulatory problems for the carrier, but the move effectively throws customers into the arms of its principal rival, Verizon. No wonder Google is upset.
The ramifications of this are pretty stunning:
- The FCC is likely to take fairly draconian action to ensure this doesn't happen again, perhaps forcing a decoupling of handset vendors and app stores; this would have a huge impact on Apple's future, given that apps are the iPhone's rocket fuel;
- Verizon gets to smell like a rose, and if the FCC allows carriers to sell apps (which they should, although the agency may attach strings, like forcing carriers to make the apps transportable from one device or carrier to another) gives it a huge head start as it has already announced plans for a mega app store;
- AT&T will lose its iPhone contract with Apple, which will cause it to run for the nearest, next hot device -- which could very well be an Android phone (perhaps with augmented reality features, which are thus far only available on Android operating systems);
- Apple will be forced to publish and adhere to a transparent set of rules governing submissions and the review process for new apps.