French Carterphone may halt L’iPhone
I love my iPhone. Despite what others might say, it is the most innovative mobile phone in a decade. I also think innovators should be rewarded, which is why I’m fine with the iPhone being locked to AT&T’s network. As a result, Apple gets a cut of my (and every other iPhone owner’s) wireless bill.
France might be left behind when it comes to this innovation, however. That country has laws similar to the wireless Carterfone rules Tim Wu, Skype, and others have advocated for the U.S. Locked phones in France must be unlocked by the carrier upon user request, and wireless carriers must also sell unlocked versions of their mobile phones. As a result, Apple is considering keeping the iPhones off French shelves indefinitely.
To me it’s clear that forced access laws limit innovation. I think folks who propose such rules want to have their cake and eat it, too. That is, they want the innovation that comes from entrepreneurs acting in a free market (and often fueled by exclusive deals such as the one between Apple and AT&T), and they also want the forced openness of networks. They think that the latter will have no impact on the former; that innovators will innovate regardless of the incentives. The iPhone snag in France, however, shows that incentives do matter.
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Really, what about Carterphone? Do you really think the explosion of devices for phone lines--from **affordable** direct connect answering machines, fax machines, 56k modems, cordless phones and DLS would have occurred without Carterphone? I think not.
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Thank you for the link. However, your statement in the OP was unqualified, so I feel justified in questioning it.
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However Apple can just sell the unlocked iPhone for a price that covers its costs plus whatever profit it wishes to make on it. In addition Apple still can get into mutually beneficial exclusive deals with phone companies, where people buying a contract with Apple's phone partner get the phone for a lot less.
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