Senators challenge AT&T's exclusive iPhone deal | Hacker News Reader

Senators challenge AT&T's exclusive iPhone deal

itworld.com

6 pointsabennett6 comments

If I'm not mistaken Apple approached numerous carriers, many of them turned their noes up to requests Apple made so specific iPhone features could function as intended, such as visual voice mail and more importantly, complete freedom with the AppStore. For all its faults... prior to the AppStore, mobile software and distribution was a complete joke.

While AT&T service leaves much to be desired, they took a risk and therefor should be rewarded appropriately IMO. For years consumers have been at the mercy of non-innovative phone manufactures and subpar mobile service. Apple + AT&T is a driving force, this is one of those times the gov't should just leave capitalism alone.

"I believe consumers benefit from exclusive deals in three ways: innovation, lower cost and more choice," said Paul Roth, president of retail sales and services for AT&T.

That is pretty bold statement to make under oath. But I am most impressed he was able to say that with a straight face.

Being able to say such things with a straight face is a job requirement for a second-tier senior executive.

Note that the "I believe" is also useful when you have to say something under oath - you can always be wrong about what you believe.

I hate AT&T as much as the next iPhone owner but is this really something they need to concern themselves with?

Consumers in no way benefit. Verizon had argued that the carriers wouldn't put the marketing behind devices if they weren't exclusives. Well, phone companies would hawk their wares.

It's monopolistic competition (http://en.wikipedia.org/wiki/Monopolistic_competition). They each want to be a little different so that they'll attract a subset of the population and be able to charge a little more. Without exclusive devices, each carrier has a lower ability to differentiate themselves from each other and less of a chance to charge consumers higher prices.

The more differentiation, the less you have to compete on price.

I don't care that much for iPhone (here in Brazil telcos have legal obligation to unlock devices if the owner asks for it), but if that allows Palm to quickly release an unlocked GSM Pre, I am in.

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