Thursday, February 22, 2007

Apple negotiates for end-to-end control on the Cingular network

Our notes emphasize the fact that the Internet is an end-to-end network with application development, funding, hardware, and content being supplied by users, not carriers. Telephone, cable and cell phone companies would rather sell specific services which they provide, charge for and control.

Cellular companies have kept tighter control than telephone and cable companies, but this Wall Street Journal article says Apple's Steve Jobs played hardball in negotiating control over application and hardware design with Cingular in return for being the exclusive carrier for iPhone calls.

This means Apple can innovate. For example, iPhone users will be able to display a list of phone messages and listen to them out of order rather than consuming call minutes while a synthesized voice says "you have ten new messages ..." then listening to them one at a time. Try that with your current cell phone.