iPhone Forcing Open Wireless Networks?

fermion writes "Wired asserts that the iPhone blew up the wireless industry. This article argues that because Apple demanded the opportunity to control their own phone, and ATT née Cingular agreed, other companies are opening up the networks, and Google now has the opportunity to make Android a reality. There are other tidbits. Allegedly Verizon turned Jobs down without even listening to his pitch, a decision they may well regret now that they are hemorrhaging customers. Also, that Motorola and the networks were responsible for the fiasco dubbed the ROKR, something which I believe given how damaged the American version of the RAZR was compared to international version. It also estimates that the iPhone cost upward of $150 million to design, and earns Apple about $200 profit per phone."

Comments

US, welcome to the world

[Marcion]

Europe and most of the rest of the world has GSM and GSM alone. You can take a SIM card from any carrier and put it in any phone. It has always been like that.

Re:US, welcome to the world

[Anonymous Coward]

The UK actually still has a number of handsets per operator that are 'locked' to that network. Whilst it's true that you can get these phones unlocked to take any SIM, it's not free to do so and it's often available from some pretty dodgy looking places.

Re:US, welcome to the world

[rbanffy]

"Since I have no demand for any of the higher phone features"

It sounds suspiciously like the folks who thought they didn't need a cellphone because they never had one before ;-)

I too didn't knew how nice is to have web browsing, high speed data connections or e-mail in my pocket until I had a phone with a full keyboard and a decent screen.

Re:US, welcome to the world

[technomom]

A decent solution for Americans who occasionally travel to Europe is the Mobal $50 phone (the buy option, not the rent). I use it for short calls home and use Skype for longer calls. If I'm in my hotel room, where work picks up the tab for the internet, I spend the first $1.50 to call my kids and husband, then tell them to get to the computer where Skype is free for the rest of the call.

If nothing else, it's a good emergency phone for traveling abroad and there's no monthly charge if I don't use it.

Re:US, welcome to the world

[Alioth]

If so, that'd be like talking about America and only meaning the western USA. I think most people think of the European Union when people talk of Europe (just like people think of the USA when saying America). The European Union includes nearly all of central Europe and most of eastern Europe today. This is almost 4.5M sq. km, so still several times larger than Texas.

Additionally, the EU has a population of just under 500M people - around 200M more than live in the United States. The EU is a much larger market than all of North America.

Re:US, welcome to the world

[ciscoguy01]

As to CDMA (Verizon and Sprint in the US) and GSM (Tmobile and ATT in the US), the amazing part about all that is that Verizon has spent as much as they have to build out the nationwide network, with CDMA.

I've been inside both type cellsites.
CDMA is an antiquated technology. There is a huge concrete building to house the equipment. 2 rows of 6' high racks lining the building, maybe 15 or more racks of junk! Hundreds of batteries for the UPS. A big AC unit. All requiring constant maintenance. They have special crews from an outsourced company that just maintains and changes the batteries.

Contrast this to GSM equipment: There is a little cabinet. Some are small enough to hang on a pole with the antenna on the top. The Ericsson and Nokia GSM equipment that I saw is a 6' high cabinet about 4' wide, the door flips open and you are standing outside. Some competing equipment is much smaller.

With the pile of junk required to support a CDMA network-- it is maybe 8 or 10x what it takes for a GSM site. I can't believe the whole world isn't GSM.

How can Verizon and Sprint spend the money it has to be costing them to maintain that, when the GSM cellsites have to cost much less?

Re:US, welcome to the world

[DECS]

UMTS is the next generation of GSM, and is based on W-CDMA. That makes it a closer relation to Qualcomm's CMDA2000 (the 2G rival to GSM used by Sprint/Verizon Wireless in the US and the common standard in Japan).

However, while 3G UMTS uses W-CDMA rather that GSM's TDMA, it is not supported by Qualcomm. For the 3G of mobile networks, 2G GSM and 2G CDMA2000 carriers were supposed to unify the world under one new standard: W-CDMA UMTS. The U stands for Universal. Such a system would be a lot more like GSM than CDMA2000 in principle: interoperable.

There are problems. For starters, Qualcomm decided to push their own incompatible WCDMA version to rival UMTS, so they'd be assured to make more money. This is like Microsoft using MPEG-4 H.263 as the basis for Windows Media/VC-1, and then using it to compete against the MPEG-4 H.264 standard. Qualcomm hates interoperability as much as Microsoft. Giving either Qualcomm or Microsoft the credit for introducing bastardized versions of standards is questionable.

The other roadblock for UMTS being universal is that it has been built out in Europe and Japan (FOMA) using frequencies that aren't available in the US. That's why AT&T's UMTS isn't the same. A chipset can operate on two different frequencies, but this is still quite a bit more expensive and not widespread enough to be affordable yet, as AT&T's UMTS network is mainly available just in big cities. Slightly worse is the fact that T-Mobile in the US also operates UMTS service on a third set of incompatible frequencies. Having US providers of UMTS fractured between frequencies is preventing economies of scale from working.

In contrast, AT&T, T-Mobile, and European 2G GSM all operate on two out of four different frequency bands, and are common enough that quad-band GSM phones are easy and cheap to build.

A dual-frequency 3G UMTS iPhone could help standardize and cheapen the chipsets required to deliver worldwide UMTS, due to its broad branding, popularity, and common development platform. That could in turn help push other manufacturers toward delivering phone sets that support worldwide UMTS service, and bring things back to the kind of interoperability GSM provided for 2G networks.

Another problem for UMTS is that it requires far more intensive signal processing than earlier protocols, so battery life is a problem when using it. Ubiquitous WiFi might be a better solution.

Readers Write About iPhone, 3G Wireless Networks

Re:the iphone is horrible

[mlts]

Verizon announced that it plans to go GSM in the future, and if they completely phase out CDMA, pretty much only Sprint/Nextel would be the only CDMA provider in the US.

I'm not sure how serious Verizon is about this, although I do know that both AT&T and T-Mobile cross-license their towers, so it doesn't matter what brand of GSM tower is near someone. If Verizon also cross licenses, it wouldn't mean a big expenditure outlay on their part at first (although they would have to build towers to hold up their part of the deal, most likely.)

Maybe this is good -- if the US goes completely GSM, it might allow providers to bring 3G as a standard (instead of EDGE), and perhaps Super3G/4G soon after, but who knows.

Android FTW!

[multiview]

1. The headline is horrible. iPhone didn't contribute to wireless networks that are open by some means.

2. iPhone won't open the market. Android will. Reason: Android is fully customizable. Soon or later Skype[1] or any other VOIP/instant messenging app will be available. Data traffic will become more important than regular POTS calls. Eventually one carrier might step out of line and get out of the entrenchment by offering reasonable data traffic packages. The game theory for this is a prisoners dilema, and we know that all participating players will lose at end. But that's just good for the customers. Technology will dictate it at the end, and it's Google Android that will take the lead here; not iPhone that is tied to carries by contracts.

[1]Skype itself is a total horrible vendor lockin, but hopefully the protocol gets reverse engineered one day and we will all enjoy open clients. Everyone that uses a multi-protocol client with MSN/ICQ/AIM/JABBER knows that suddenly a single protocol becomes quite easy to replace and hence its power to dictate the rules (as it so for skype at the moment) vanishes.

I want my Newton replacement

[WillAdams]

When Jobs killed the Newton, he promised that having those engineers available for other products would create innovative and break-through portable computing devices --- all I've seen are iPods, admittedly nice (but traditional form-factor clamshell) laptops and the iPhone. From:
http://www.wired.com/gadgets/wireless/magazine/16-02/ff_iphone?currentPage=2

>Apple's hardware engineers had spent about a year working on touchscreen technology for a tablet PC

Where is it?

I'd buy an iPhone today if only it allowed one to use a stylus for handwriting recognition and allowed one to draw and annotate documents, but would prefer something a bit larger, but not quite so large as the Axiotron ModBook, http://www.axiotron.com/index.php?id=modbook and ideally it would have a nice docking station option and media-oriented features allowing it to work as a remote control, portable music player while hidden away in a laptop bag, ebook reader &c.

I'm definitely getting a Wacom Cintiq 12WX for my next machine at home (and a 20WX at work) --- http://www.wacom.com/cintiq/index.cfm --- but I need a replacement for the Fujitsu Stylistic which replaced my Newton (which replaced my NCR-3125).

William

Hemorraging customers?

[Anonymous Coward]

"Allegedly Verizon turned Jobs down without even listening to his pitch, a decision they may well regret now that they are hemorrhaging customers." have a look at last quarter's results: http://www.rcrnews.com/apps/pbcs.dll/article?AID=/20071103/SUB/71103002 Quarterly results from Verizon Wireless and Sprint Nextel Corp. came as no surprise: Verizon Wireless did well and Sprint Nextel didn't. Although Verizon Wireless was outpaced in net customer additions by AT&T Mobility, the carrier added 1.8 million net retail customers during the third quarter, which was slightly offset by losses of about 115,000 customers from its wholesale business, leaving Verizon Wireless with 1.6 million net new subscribers. Verizon Wireless now has 63.7 million customers, 97% of whom are retail customers. The industry's No. 1 carrier, AT&T Mobility, counted 65.7 million customers at the end of the quarter. Verizon Wireless' total revenues were up 14.4% year-over-year to about $11.3 billion. Income for the business gained 21.6% on the same quarter a year ago at $978 million. that's not hemorraging customers! Quit editorializing when you don't know what you're talking about.

iPhone Owner here.

[Jackie_Chan_Fan]

I love how Apple has managed to sell the phone at their apple stores, and all you need to do is pick it up, plug it into itunes and fill out a form and you're all setup on at&t very easily.

The setup is a very nice experience. No need to go to some at&t store for anything. If you dont have an apple store, you can order from apple online, have it shipped to your house and you can turn on the at&t service yourself through itunes. Its just a nice way to do things.

The iphone is awesome, but its not everything it could or should be. Apple has created a great platform but they have fallen short in features. It looks as if Apple is going to continue to support the iPhone by adding more applications thanks to the upcoming SDK, and they will be adding new features to existing phones as well as future versions. The iPhone looks like a platform, rather than a phone.

Right now, the iphone is lacking a lot, but it does somethings extremely well. Whats interesting is how people are willing to look past the shortcomings just to have an iPhone. In my case, and in many others, we werent aware of the shortcomings. I mean come on, how can it not have cut and paste?

Apple isnt being aggressive enough in adding features that the iphone lacks. Copycat phones are showing up, they're stealing a lot of ideas from Apple, and they are adding more functionality faster than Apple is. Granted these copycat ui's arent as elaborate or graphical, but they a made by the known players in the cell industry... and they can move very fast.

Re:iPhone Owner here.

[Jackie_Chan_Fan]

"Pray tell me, what's so great about having to download an application that is almost totally unrelated to your phone to have to activate it?"

The application is related to your phone, it is how you put music and other things on the phone. Now i think Apple does need to improve iTunes a lot, but the application does relate to the phone. The phone is not just a telephone but an mobile media player as well.

You still do have the option of going to an AT&T store and activating it there as well.

It's just nice to buy the phone and go home and activate it. Its a very simple process that is far better than waiting in line at any store.

OpenMoko FTW!

[Marcion]

Android is fully customizable

Are you sure about that? The OpenMoko is fully customisable because it is a fairly standard embedded version of Linux and you are the root user. I'm not sure Android is like that. As far as I know (which is not far), you can customise one layer i.e. what runs inside the Java sandbox but that's it. For me that is no more interesting than Symbian (i.e. not interesting at all really).

I'm waiting for the OpenMoko

Re:Nokia phones are open, not iphone

[Ilgaz]

I own a Nokia 9300, Symbian S80 which is a lot "business" phone than N95 so there isn't huge activity. As Nokia moved to S60 on their mini laptop like devices, it will be unlikely.

So I was not watching Symbian scene a while. Yesterday I decided to browse and shop for some stuff, I couldn't believe my eyes. VNC client became open source and free, directly from Nokia along with a Symbian POSIX framework. Symbian added a open source, sourceforge like site, Nokia finally decides to give more iSync plugins directly from nokia.com/iSync page, they are giving away satellite navigation software.

We, Nokia smartphone users should really thank to iPhone while there is no way a Symbian S60 true user will feel comfortable with such a closed thing. Even SDK ships and unless a miracle happen, there won't be deep level running software like SMS Anti Spam managers.

While watching iPhone launch from a live webpage, I saw signs of OS X right at beginning and a professional OS X developer friend was on my contact list. I was saying "Wow, your software will fit great to iPhone screen, just XCode update will be needed" and thinking about that huge selection of OS X software at Versiontracker, I was wondering which will fit, which will need change...

It turned out to be closed device even without already secure (by nature) J2ME with lame excuses like "Nobody wants Java" (like they know if they have it).

That is the reason why I was flaming on every iPhone story, a complete blow of hope. I was expecting a true smartphone revolution which will also push Symbian/Linux guys. Just look how much Symbian scene changed after that half enabled device.

Missing Features?

[LKM]

Apple isnt being aggressive enough in adding features that the iphone lacks.

I'd argue the "lacking" features are what makes the iPhone good. The copycat phones which look like iPhones b ut offer all the features of Windows Mobile are missing the whole freaking point of the iPhone: It's simple and easy to use.

Re:AT&T, Cingular, T-Mobile

[King_TJ]

What do you mean AT&T/Cingular and T-Mobile are "open" carriers?

Just last week, I had to fight to get my boss's Motorola W400 phone unlocked. He had it subscribed with T-Mobile originally, but after his contract ran out, he got a new (cheap) phone with an AT&T contract. He didn't like the free phone they included, so he wanted to swap SIM cards and use the W400 on his new AT&T contract.

Immediately, the phone balked, complaining it was subsidy locked and prompted for a PIN code to unlock it.

T-Mobile will agree to give you the unlock code for the phone, but they don't make it easy. I had to find out my boss's last 4 digits of his social security number, his account number and billing address first. Then I could call, pretending I was him (because otherwise, they wouldn't even talk to me at cust. service). After a long wait on hold and being transferred to some other dept. that wasn't reachable directly by pressing a touch-tone at the initial prompts, I was informed I'd have to wait 24 hours for the code to be emailed to me. On top of all that, I was informed that they'd only provide these unlock codes to people who called within the first 90 days of cancellation. After that, too bad.....

I really don't see the iPhone as a "big step backwards" at all. If anything, it does a small twist on the "status quo" of receiving a carrier-locked phone with a service contract. You do pay full price for the phone up-front, which would *normally* mean you should receive an "unlocked" phone, BUT in the iPhone's case, you receive a phone locked to a carrier offering you special rate plans JUST for it, and service with customized capabilities (visual voicemail) just for it.

I'd be a lot more upset with the iPhone if it was locked to AT&T, *and* I was stuck activating it in the traditional manner (forced to get it turned on at the point of purchase, after a credit check is done and a salesperson tries to upsell/harass me for a while, etc. etc.), *and* I had to pick from one of the exact same plans they offer for all their other phones.

Nope

[blueZ3]

It'd be more like talking about the United States and meaning "contiguous United States" ignoring Alaska (which is roughly 1.7M sq. km.) and other assorted states and territories.

Most Americans (this is anecdotal) seem to live in a 50's world where "Europe" means the western portion of Europe that was never part of the communist block. Basically, England, France, Germany, the Iberian Peninsula, Italy, and Scandinavia. We generally don't consider Poland, Ukraine, or other Slavic/Eastern Block countries part of "Europe" even though I'm sure most Europeans do. And probably most Europeans who talk about "America" are talking about the contiguous U.S, forgetting Alaska, etc.

Anyway, leaving aside what exactly we think about when we're thinking about the "other" place, it's pretty hard to get a grip on just how large the contiguous U.S. is without actually driving across it. From Los Angeles California to Portland, Maine is a drive of almost 5,000 km.

None of which makes the U.S. better or less backward in any of the ways we're backward. It's just amazingly vast.