Making the case for an unlocked iPhone
Now that the iPhone 3G is upon us, I thought it would be a good time to discuss the fact that an unlocked iPhone is probably best for everyone.
Surely some are led to believe that Apple and AT&T would never want out of an exclusivity agreement because, well, if Apple really wanted out, it would have done it already. Based on that (poor) logic alone, some people are justifying the existence of this situation. But as for me, I don’t understand the logic and actually believe it’s a foolhardy notion with no basis in reality.
Here’s why:
The way I see it, the marriage between Apple and AT&T is made in hell. AT&T has consistently solidified its place in the cell phone space as one of the most hated with its draconian policies and downright ludicrous contract that's far too long and far too stringent. On the other hand, Apple has shown that the exclusivity deal was nothing more than a ploy to develop a foothold in the cell phone industry, and now that it has accomplished it, AT&T has become a not-so necessary evil.
And to make matters worse, Apple isn’t getting anything out the deal this time around.
According to most reports, Apple’s arrangement with AT&T has changed since the announcement of the iPhone 3G. Instead of sharing revenue with the carrier, the arrangement looks quite similar to any other deal in the space: the manufacturer sells the phone to the carrier, the phone is deeply discounted by the carrier to entice buyers, and all the revenue from the service is incurred by the carrier. Last year, Apple was enjoying a slice of the pie along with the profits off the sale of the iPhone.
How quickly things have changed.
But now that Apple isn’t receiving any additional revenue from the deal, why would it want to cut out a major portion of the market by staying exclusive with AT&T? Some say that it’s that alleged 5-year deal the companies signed, but I don’t know of one person who actually knows what is in it, so Apple may be able to get out; we just don’t know.
Assuming it can, the iPhone should be unlocked and allowed to be placed on any carrier’s service. It not only benefits Apple – suddenly a major portion of its forgotten customer base is back in the loop – but it also helps consumers who don’t want to join AT&T, but really want an iPhone.
In the United States, that would mean that the iPhone 3G would only be found on AT&T and T-Mobile services at the start, but what’s to say Apple can’t create an iPhone 3G that runs on Verizon’s and Sprint’s networks? Palm and RIM do it, why can’t Apple?
The only loser in this scenario is AT&T. But to be quite honest, I couldn’t care less. The fact of the matter is this: unlocked cell phones should be the norm. And if Apple can lead that charge and make a big deal out of its bid to create an unlocked cell phone industry, the entire landscape would change. Instead of an industry that’s ruled by cell phone companies, consumers will finally lead the charge and wield some power by deciding which service is best for them. And in the process, carriers will be forced to take note.
Build your tech library with our book giveaways.
Windows PowerShell 2.0 Unleashed
By Tyson Kopczynski, Pete Handley, Marco Shaw; Published by Sams
Windows PowerShell Unleashed will not only give you deep mastery over PowerShell but also a greater understanding of the features being introduced in PowerShell 2.0–and show you how to use it to solve your challenges in your production environment. Enter now!
Ubuntu Server Administration
By Michael Jang; Published by McGraw-Hill Osborne Media
Realize a dynamic, stable, and secure Ubuntu Server environment with expert guidance, tips, and techniques from a Linux professional. Ubuntu Server Administration covers every facet of system management -- from users and file systems to performance tuning and troubleshooting. Enter now!
In the United Kingdom, if it
In the United Kingdom, if it did not invent the scheme, Virgin Mobile certainly made pay-as-you-go extremely popular here. I liked the idea of simply paying the going price for a handset (or finding a bargain), buying and installing the SIM, and off you go. I switched from Vodafone as soon as my previous contract was up, and I'd never go back. Not even for the iPhone. Of course, you can also contract with them as well, but that's optional, and can still be independent of phone purchase. It's easy to replace a phone (eg, when you discover that its battery life is poor, or you dislike the user interface): just buy another. What could be simpler? I also used (and still use) my phone fairly infrequently, so I always lost out on the other contracts.With devices like the iPhone, I'm also more interested in WiFi connectivity than 3G, for my purposes, so again a normal telephone contract would not suit me. Indeed, I see that existing cell carriers in the US and Canada don't really seem to understand that it's a network data device, to judge by the rates and limits they provide for 3G and WiFi access. Tiny data limits? They don't get it, so (probably) neither shall I, except perhaps for application development. I wouldn't dare use it if the UK charges are similar, or worse.
Another aspect of the iPhone that bothers me, not mentioned here, is the closed scheme for iPhone applications. As I understood it, you can only buy them from the Apple store. If the applications are not free of charge, they take 30% of the price. Is that right? If so, it seemed excessive to me, even in our high-tax country. Furthermore, I understood Apple looks at the application first to see if they want it on their blessed machine. Who owns the device? It seems to be the Cell phone operator, then Apple, and then we might be allowed to use it, within their constraints.
The whole notion of "locked"
The whole notion of "locked" phones in the US undermines the FCC's open competition stance amongst service providers. I vividly recall the first months in which Local Number Portability (LNP) was imposed on US carriers, which led to a frenzy of defections of disgruntled customers, or those just seeking a better deal- yet retaining their existing telephone numbers. Horay for the consumer! Just as in the pre-LNP days, customers are again boxed-in and bound to a specific carrier, but this time through a locked handset. Perhaps this is an issue to be reviewed next year by the Obama administration (chuckle, chuckle).The thing you seem to be
The thing you seem to be missing is that in the US (and I'm sure elsewhere) the iphone WILL be available unlocked. Of course the price will be higher, but that's the same with any phone. So if you want an unlocked iphone - go ahead and buy one. One caveat however: in the US only T-Mobile has a compatible network besides AT&T, so you would have to use one of those two carriers while in the US. It could be used in many other countries around the world however.