AT&T can block cheap net calls on iPhone - Telecom giant has veto power over some applications

AT&T can block cheap net calls on iPhone - Telecom giant has veto power over some applications
By Joseph Menn in San Francisco
Copyright The Financial Times Limited 2009
Published: August 22 2009 01:43 | Last updated: August 22 2009 01:43
http://www.ft.com/cms/s/0/c4ed0ea0-8eb2-11de-87d0-00144feabdc0.html


The terms in AT&T’s exclusive US contract to provide connections for Apple’s iPhone give the telecommunications giant the power to veto online store applications that use AT&T to launch cheap calls through the Internet, the companies disclosed late Friday.

So far, the alliance has limited the use of approved Voice over Internet Protocol applications, including Skype’s, to WiFi hotspots, so as not to undercut AT&T’s model of charging for calls. But AT&T said “We plan to take a fresh look at possibly authorizing VoIP capabilities on the iPhone for use on AT&T’s 3G networks.”

The comments came in response to questions from to the US Federal Communications Commission, which is investigating whether such partnerships as the AT&T-Apple tie-up unduly restrict access to smartphones.

The FCC’s inquiry was triggered by reports that Apple rejected downloadable App Store programs based on Google Voice. But Google’s programme doesn’t use VoIP. Apple said it hasn’t approved Google Voice yet because it takes control of some of the key functions on the iPhone, including voicemail and text messaging. Apple said it hasn’t rejected the application and “continues to study it.”

As it had previously, AT&T said it had no general authority over applications in the App store. But it can and has become involved over a couple of other issues, including the use customer information and where “there were concerns that the application might create significant network congestion.”

That’s why some applications that would stream live video have been limited to WiFi locations, AT&T’s filing said, and why the Pandora music streaming service required some changes to the streaming technology being employed.

Apple said it approves 95 per cent of the requests to add applications in its online store within two weeks. Google, in its own filing, said its Android operating system for mobile phones doesn’t require that apps be pre-approved to get into the Android Market. Acting on complaints after the fact, the company said it has removed about 1 per cent of the programmes, mostly for adult content or copyright complaints.