Apple, AT&T, Google Explain Google Voice

Apple, AT&T and Google on Friday all replied to the FCC’s letters of inquiry regarding the companies’ roles in the rejection of the Google Voice application by Apple’s App Store, with Apple saying it hasn’t actually rejected the application – it just hasn’t been approved.

As part of a wider directive from the Obama Administration to investigate competition in the wireless industry, the FCC asked the three companies to explain what exactly Google Voice is and why it was rejected from the Apple App Store.

Google described its service as an “enhanced voice and data messaging application that provides number management and related services to users who have one or more existing wireline or mobile phone services.” Additionally, Google acknowledged that users can make calls using the service, which Google said, “utilizes the carrier voice network from the application.”

But it wasn’t use of the carrier’s network to place calls that bothered Apple. The iPhone maker denied allegations that it has rejected the Google Voice app at all. A letter from the company stated that Apple “continues to study it. The application has not been approved because, as submitted for review, it appears to alter the iPhone’s distinctive user experience by replacing the iPhone’s core mobile telephone functionality and Apple user interface with its own user interface, for telephone calls, text messaging, and voicemail.”

AT&T and Apple denied any kind of collusion with AT&T in the review, approval or rejection of the application. AT&T saw a backlash after the application was rejected as many critics of the move accused the carrier of asking Apple to reject the application.

Both companies acknowledged certain contractual obligations designed to protect AT&T’s network health and the iPhone’s integrity. For instance, Apple noted that “there is a provision in Apple’s agreement with AT&T that obligates Apple not to include functionality in any Apple phone that enables a customer to use AT&T’s cellular network service to originate or terminate a VoIP session without obtaining AT&T’s permission.” Further, Apple acknowledged that it did not know if there was a VoIP element to Google Voice.

AT&T did say it would review its policy regarding VoIP applications running on its network, stating: “We plan to take a fresh look at possibly authorizing VoIP capabilities on the iPhone for use on AT&T’s 3G network. AT&T will promptly update the Commission regarding any such change in its policies.”

Meanwhile, VoIP service provider Skype released a statement applauding AT&T’s willingness to “take a fresh look at authorizing VoIP capabilities on the iPhone over AT&T’s 3G network.”Because VoIP services allow cheap voice calls and messaging, most have been relegated to only working over a Wi-Fi connection.

AT&T Says It Will Dramatically Increase Network Speeds In 2009

AT&T (NYSE: T) sounded defensive about the speed of its network during a presentation to Wall Street analysts this morning. Currently, AT&T offers DSL-like speeds where it has HSDPA deployed, but AT&T’s Mobility CEO Ralph de la Vega said at a Morgan Stanley event today that by next year, it will start delivering speeds up to 20 mbps, and by 2010, they will surge to an impressive 100 mbps. Without saying it, I’m sure AT&T wanted us to point out that it will have a much faster network than the one being proposed by the high-profile Sprint (NYSE: S) Nextel and Clearwire joint venture that dominated the headlines last week. The yet-to-be approved Clearwire-Sprint JV, backed by Intel (NSDQ: INTC), Google (NSDQ: GOOG) and a handful of cable operators, expects to deliver around 6 mbps to 140 million people by the end of 2010.

De la Vega’s comments were likely a reaction to Clearwire and Sprint’s claims that they will be the first to roll out 4G in the U.S., and will be two years ahead of the competition. AT&T, Verizon (NYSE: VZ) and T-Mobile have all chosen to use LTE, a technology that hasn’t even been standardized yet. But AT&T is essentially arguing that it doesn’t matter—through simple software upgrades, it can have much faster speeds than Clearwire (NSDQ: CLWR). “It’s clear to us, we are in the early stages of the wireless data revolution, and there are significant opportunities ahead as we ramp up,” de la Vega said. “Through interim steps, we can deliver more speeds everyday. It’s a promising time for the business, and we have a strong record of executing, and we have a strong spectrum position that gives us a great foundation for delivering…We are in a new age—as I call it, a great age—of wireless. It is just ahead of us and we are positioned to lead.”

Verizon, Mozilla, SK Telecom And Others Join Mobile Linux Efforts; Enterprise Targeted

Verizon Wireless (NYSE: VZ) confirmed today that it will support the Linux mobile-phone operating system, and join the LiMo Foundation as a core member, signaling its commitment to the platform. As part of the announcement, LiMo announced a list of other new supporters, including SK Telecom (NYSE: SKM), Infineon Technologies, Kvaleberg, Mozilla, Red Bend Software, Sagem Mobiles, and SFR. [Releases]

Kyle Malady, Verizon’s VP-network, said in a conference call this morning that Linux will be added to the platforms Verizon already supports, including Windows Mobile, Palm (NSDQ: PALM) and Brew. It does not preclude the No. 2 carrier from joining Google’s (NSDQ: GOOG) Android platform in the future, Malady said. LiMo was chosen over Google’s Open Handset Alliance because it already had handsets in the marketplace, and had a variety of members crossing all sections of the industry. “We anticipate that as we move down the path of Linux, we’ll be looking at it as the OS of choice in handset lineup moving forward,” he said. Verizon will first launch lower-end phones, and move up to smartphone and PDAs with the first phone expected in 2009. Verizon will encourage its handset partners to use the OS even if it is not a part of LiMo. Verizon, which will make a big financial commitment by hiring people, expects the open platform to lower development costs.

Verizon’s commitment to LiMo should not be too much of a surprise given that its partial owner, Vodafone (NYSE: VOD), is a founding member; however, it’s the largest commitment by any North American carrier. AT&T (NYSE: T), Sprint (NYSE: S) Nextel and T-Mobile have all come out in favor of Android.

Targeting Enterprise
ZDNet UK writes that LiMo is in talks with a couple of major Linux distributors to bridge enterprise and mobile. “The principle area of interest [regarding these two companies] is evolving the software stack such that it’s really fit for purpose as a mobile platform in the enterprise segment, and will support applications and services for enterprise which interoperate comfortably on mobile devices and desktop devices,” said Gillis. “It’s seamless enterprise computing, basically.”

Ovum analyst Adam Leach is quoted as being surprised by this because the consumer space is seen as a bigger opportunity—but if a company sells Linux software to enterprises it makes sense they’d want to connect mobiles to that rather than targeting a whole new audience. Leach also said the latest announcement makes Android look bad: “After a good start and big fanfare, we’ve just seen prototype demos. It seems to me that they’re not making the progress that we would expect.”