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Jim Zemlin Pitches Linux App Stores For Telcos
angry tapir writes "Mobile carriers may start giving away netbooks for free, and Linux-based application stores could help them profit by doing so, the Linux Foundation's Jim Zemlin argued at a recent forum in Beijing. 'Selling discounted netbooks to users who buy a mobile data subscription would extend a sales strategy widely used for mobile phones. Carriers often sell phones for below retail price and let a user's subscription fees make up for the loss. AT&T already sells subsidized 3G netbooks in the US, and China Mobile has announced similar plans. Carriers worldwide are likely considering the option, which lets them charge for added services like downloads of music, videos and software, said [analyst Jack Gold]. Those downloads could come from platforms like the iPhone App Store that target mainly mobile phones today. Competition could push netbook prices down as more carriers subsidize them, which would make putting Linux on the laptops an attractive way to cut costs, said Zemlin.'"
This is exactly the opposite of what would be good for consumers. Mobile providers should get out of the hardware business entirely. They should be selling a service, and providing something like a SIM card which consumers could put into whatever phone or netbook they like.
The benefits for consumers are clear. They could use any hardware they like with any provider. They could reuse their hardware devices for new contracts. There would be a good market to buy/sell used cell phones. And best of all, mobile providers would be forced to compete on service and price rather than competing on who has the shiniest phone.
This will only happen with legislation, but unfortunately our legislators are more likely to be working for the phone companies rather than working for the people.