Do you remember my post "Google is the real telco disruptor" from july?

Well, it seems that the story could become even more interesting with another player entering the 700 MHz wireless spectrum auction that many didn't have on their list: Apple might also bid for that "bech front property" spectrum, suggests a BusinessWeek article called "Apple Eyes the Wireless Auction".

Taking into account this possible development many pieces of the puzzle would fall into their place. Why is the iPod touch such a cool device, an iPhone without phone? Why did Apple cut the price for the iPhone so soon and drastically?

In Germany the association eco, alliance of 330 big internet companies, hailed already last week the new device by saying "Wifi iPod makes mobile internet a mass market" in a press release. They are fed up with the slow acceptation of mobile internet service on Germany because the incumbent mobile operators keep 3G data prices high and accept only walled gardens on their devices.

"T Zones, Web-n-walk und Vodafone Live all try to keep away the user from the free and open internet", says eco director Harald A. Summa. "Exactly this policy of closed networks has so far prevented the breaktrough of the mobile internet to a mass market. The success of iTunes and Youtube shows that the users know much better than the operators what they really want." The new iPod touch offers direct Wifi access to iTunes and Youtube, circumventing the closed networks of the mobile operators.

So, let's just imagine that the iPhone never planned to sell millions. Maybe it's real purpose is just to create buzz for the new iPods? The iPod touch has every feature that you like from the iPhone. It only misses the annoying part of the phone: A 60 dollar per month cell phone contract. New iPods could work without that contract, using the 700 MHz spectrum, suggests the article in BusinessWeek:

Signals at the 700Mhz spectrum, for example, could provide far faster Internet access than today's cellular or even Wi-Fi networks, and the signals can easily pass through buildings and work glitch-free, even in lousy weather.

Still, even the possibility of an Apple bid is intriguing. For starters, it would mean Apple would no longer need to rely on a phone company to deliver songs, TV shows, and other digital fare purchased at its iTunes Music Store. As it is, the major complaint of iPhone shoppers isn't with the phone, but with the pokey Net access from Apple's exclusive U.S. partner, AT&T (T).

If it owned its own spectrum, Apple could provide the network service itself, possibly for far less than the $1,440 iPhone owners must now fork out over the course of the cheapest two-year contract. For example, Apple could hold down costs by letting users choose a Net telephony program such as Skype rather than develop its own voice software, say analysts.

Apple might even be able to give away network service for free, and make its money off services such as iTunes and possibly by selling subscribers advertising space.

Indeed, cutting out the carrier would probably be in sync with Steve Jobs' view of the world. Before striking the iPhone deal with AT&T, he publicly dissed phone companies as little more than "orifices"—good only for providing dumb pipes to deliver more innovative companies' more innovative services.

"Apple is the most anti-carrier company there is," says the former Apple executive. "They're probably already frustrated with AT&T. If they put a few billion behind this, they could build a kick-ass network." Indeed, on Sept. 5, Apple announced a new iTunes Wi-Fi Music Store so consumers can buy songs at wireless hotspots, something they can't do on AT&T's network. And Jobs made a point of noting Wi-Fi is faster not only than the so-called 2.5G EDGE network, but also than 3G cellular networks.

A very convincing argumentation that matches perfectly with what eco said. That's also the reason why I had to copy such a long passage of the original article. (Sorry for that!) Hopefully it's not only intentionally leaked hot air to lift Apple's stock price.

Labels: Apple, Broadband, free phone calls, Google, iPhone, iPod, Mobile, Skype, T-Mobile, Vodafone, VoIP

                                      

Vodafone and T-Mobile are now definitely banning the use of VoIP in their mobile networks in Germany. This had been long announced. Yet two years ago Vodafone Germany changed its Terms of Service (TOS) to reserve its right to block VoIP from the 8th of july 2007 on. But they weren't sure whether they would really do it. In february 2007 Vodafone Germany's speaker Heiko Witzke still told me that it was unclear whether or not Vodafone would really adopt the ban.

Now, since the deadline has passed, the German webzine Teltarif inquired and got a straight answer: It's forbidden to use Vodafone Germany's data plans for VoIP, says the press department. The other German mobile telephony providers, E-Plus, O2 and T-Mobile, have similar footnotes in their TOS. T-Mobile even forbids the use of instant messaging over GPRS and 3G. But none of the four companies seems to filter their data traffic for voice packets yet, maybe because this would slow down the entire network.

Crippling VoIP would be really annoying for a friend of mine who recently signed a Vodafone contract to use 3G instead of DSL on his laptop. He doesn't know much about technology but loves to use Skype. With Vodafone's HSDPA and HSUPA 3G he enjoys download speeds of 3,6 Mbps and uploads at 1,45 Mbps in the whole city of Berlin, which makes him quite happy. Vodafone charges him 45 Euros monthly but someone should tell him that he is violating the TOS. I am sure that he would directly cancel his contract.

He had weird problems anyway. The service, Vodafone Mobile Connect, doesn't run on Windows Vista. But as a newbie he has a brandnew laptop with Microsoft's latest OS. We installed everything from CD as told. But it did not work and so we went to a Vodafone shop for a reinstallation. The clerk was quite friendly and invested one hour of his valuable time for a reinstallation, but all in vain. Then we went home and downloaded the latest Vodafone Mobile Connect software from the website and did all possible firmware updates. Still no success, although the Vodafone website tells that the latest software should work with Vista.

Luckily we found this solution which tells how to use the Vodafone 3G PCMCIA card as if it was a normal network adapter. This works great. My friend could uninstall the crappy Vodafone software entirely and is now happily surfing the internet.

Labels: Mobile, O2, T-Mobile, Vodafone, VoIP

                                      

Vyke plans to release an upgrade to its mobile VoIP software that will "restore full mobile VoIP functionality on mobile handsets that have been intentionally crippled by mobile operators", says their latest press release. The forthcoming version of Vyke Mobile IP will provide users with a "fully functional, stand alone mobile VoIP application that circumvents the mobile operator orchestrated removal of built-in handset VoIP capabilities".

Vyke wants to prevent problems caused by the new guidelines from the Open Mobile Terminal Alliance (OMTP), an organisation of big mobile operators like Orange, Vodafone, T-Mobile and 3. The guidance recommends to disable mobile VoIP features from new handsets sold under contract subsidy.

Tommy Jensen, Executive Chairman for Vyke Communications plc speaks in strong words:

The user should be able to do whatever they want with the phone as they have already signed a contract that guarantees the mobile operator sufficient revenues to justify them giving him or her the device in the first place.

There is an elephant in the room that no mobile operator or regulatory agency seems to be acknowledging - network neutrality. When Vodafone decides, as of June 1st, to prohibit their users from using third party applications for services like instant messaging, VoIP or text messaging, they are effectively censoring their user’s ability to choose what services they want to access from a network that they are paying for. Imagine if a home DSL provider blocked access to Google because they wanted to force you to use their own search engine, on which incidentally you had to pay a charge for each search. As wild as it sounds, this is a direct parallel to what is happening right now in the mobile arena.

It's puzzling to read these words, after an article by The Register had declared that the OMTP guidelines would do no harm to Vyke, but only to Truphone. If so, why is Vyke's latest announcement refering so much to the OMTP?

In every case a stand alone mobile VoIP application frees Vyke from the Truphone trap on Nokia N95 in the UK.

Labels: Mobile, Orange, T-Mobile, Truphone, Vodafone, VoIP, Vyke

                                      

The air is getting even thinner for mobile VoIP companies like Truphone or Wifimobile, tells The Register. The Open Mobile Terminal Alliance, a organisation of big mobile operators like Orange, Vodafone, T-Mobile and 3 has published a guidance for network operators and handset manufacturers on provisioning and maintaining VoIP settings on new handsets. It covers only the usage of pre-installed VoIP clients on handsets, such as that used by Truphone or Wifimobile. Applications which are downloaded later, like Fring or Vyke, go free.

According to the OMTP specifications, operators are entitled to remove or lock down VoIP applications on subsidised handsets, but they must provide the ability to remove that lock when the contract period expires, just as they now will release a handset to be used on another network (SIM lock).

Bad luck for some independent mobile VoIP providers, as the incumbents agree on that the initial VoIP settings should be securely protected in the terminal, and can only be changed by the operator. When the service contract comes to an end, the customer can request the provider to unlock the Terminal’s VoIP settings and associate the pre-installed voice applications with alternative VoIP service providers.

This means in most cases: No Truphone or Wifimobile in the first two years of a contract.

Much better off are independent mobile VoIP companies which install their own applications, such as Skype, Fring, Gizmo Project, Jajah, iSkoot, Nimbuzz or Yeigo. The customer may be able to install third-party applications (Java or other Terminal OS applications) that offer VoIP calling using third-party VoIP providers. The only VoIP applications that are forced to use the operator’s settings are those that were pre-installed on the Terminal, and only during the term of the contract that the Terminal was supplied with.

The mobile phone users must be informed that VoIP has been locked or disabled. So the removal of menu items, in the way that Vodafone and Orange crippled their Nokia N95, wouldn't be allowed. The Register states that the guidance is not binding to the member companies. But as so many network operators were involved in writing, it's surely what we will see next on the entire European or world market.

Let's see if that's acceptable to regulators such as UK's Ofcom and what e. g. Truphone will do. Their new software Truphone 3.0 is so feature rich and has presence functions so that it seems quite similar to the mentioned "alternative VoIP applications" to me. If Truphone 4.0 packed it all in the software, instead of using Nokias underlying SIP functions, they would be out of trouble.

But then Truphone would suck as much battery as Fring does.


UPDATE:

I got an email from Wifimobile's John O'Prey. He says that his company is NOT affected. "This is not the case as our client is a stand alone application which can be installed. I would be most grateful if you could kindly correct this."

Sorry for that!

Labels: Fring, Gizmo Project, Iskoot, Jajah, Mobile, Nimbuzz, Ofcom, Orange, Skype, T-Mobile, Truphone, Vodafone, VoIP, Vyke, Wifimobile, Yeigo