The Apple, AT&T, and Google Voice Controversy

Posted on August 2, 2009 by Bruce Keener

If you read any tech blogs at all, you almost certainly know by now that there is a huge flap over the recent pulling of the Google Voice app from the Apple iPhone App Store. Many iPhone users are upset that either AT&T, or Apple, or both pulled the Google Voice app from the App Store. Mike Arrington of TechCrunch has gone so far as to say he is giving up his iPhone because of this. And, of all things, the FCC, which is charged with maintaining internet openness, has sent letters to AT&T and Apple demanding to know what is going on.

I had not planned on saying anything about this controversy, but John sent me an email asking me to consider writing an article on it. He noted that he thinks the situation is overblown and that he is interested in my views on it. After thinking about his request, I decided that I want to know what you think about the flap. Hence, I look forward to hearing what you have to say in the comments.

Anyway, my initial reactions have been mixed. On one hand, I immensely dislike when internet openness is threatened. And, I really hate when a company disallows a service that could be useful to its customers. Plus, Google Voice sounds like a really useful application. You can see that from Paul Stamatiou’s excellent review of Google Voice and from ExpanDrive’s post on why it is important to their business.

On the other hand, I thought Arrington’s response of ditching his iPhone because of it was an overreaction. Then, I thought more about it and realized that it was no more an overreaction than was my unsubscribing from TechCrunch when he published several confidential documents about Twitter. Ultimately I realized I was missing some good articles by unsubscribing, so I signed back up. Whether Mike goes back to using his iPhone or not is not something I cannot speculate on. But I do know that AT&T and Apple could care less, just like Mike would not have cared about my unsubscribing. He’s really just punishing himself, just like I did.

Another reaction I had was that it seems like the tech blogs are treating Google as if they are pure as the driven snow. But, as Thomas R. Hall points out, “The official @googlevoice app for BlackBerry allows use of non-gmail.com accounts, but Android version does not. What is up with that?”

Good point, Thomas. And, what about the FCC jumping into this so quick? Did Google’s new-found influence in Washington have anything to do with that? When is the last time you remember the FCC jumping into anything so quickly?

It seems to me that a lot of this flap exists because it is becoming popular to bang on Apple, and it’s always popular to bang on the carriers, especially AT&T.

Come to think of it, I think that is the biggest story of all: that tech bloggers are taking off the kid gloves when it comes to talking about Apple.

I think it will also be interesting to watch whether the FCC decides to grow a set of balls and tackle some of the larger concerns that the public has with the carriers: the excessive termination fees and the fact that phones are often made to run on one network only (exclusivity deals). At 60 years old, I come from a generation that used to have some compassion for the carriers (specifically, thinking back to when it was all done by AT&T): they operated under a different set of rules and regulations because they were required to serve everybody, no matter how much it cost. My mother lives in the mountains on a farm, with no towns around for miles. Yet, she has a phone line that runs straight to the house. So, I used to be forgiving of AT&T, given the constraints it had. I am no longer that way.

Anyway, enough of my thoughts on the matter: I’d love to hear from you!

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  • John

    Good post and thanks.

    I agree that it’s unfortunate when a company decides to withold or cancel a service it could provide. But I don’t see where anybody has broken any laws or done anything that would warrant the FCC’s involvement.

    It all looks like sour grapes to me. You know, if Google Voice is that important one can always get a Blackberry.

  • Thomas R. Hall

    I’m glad that you posted an article about this, Bruce. I think that folks tend to think that certain high-profile tech people are blowing the issue of the Google Voice apps being removed from the App Store out of proportion. But I think it is a bit deeper than that. It is more that the build-up of several issues over the past two years have been causing looming discontent, and the Google Voice rejection is merely the straw that broke the camel’s back.

    Basically, in some very high-profile areas that have a high density of techie folks (e.g. – San Francisco), and even in other places, AT&T’s service is oversold. Even the speeds that I get in Indianapolis on 3G are WAY below what they used to be, and are nowhere near as consistent as before the iPhone (and especially, the 3G) launched. However, I’m only having spotty issues. Folks in a larger cities have worse issues. Here are some of the major issues that people have had:

    Dropped/Missed Calls
    No data, or downgraded to Edge
    Visual Voicemail stopped working for a few days

    Yes, I know that this is dependent on where you live, but even in Indiana (not just in Indianapolis itself, but elsewhere), I get dropped calls, calls that go to voicemail, etc. Om Malik had enough and switched away from AT&T and the iPhone altogether. As did Eric Cheng. Alex King has been watching the whole situation and is probably moving his BlackBerry away from AT&T as well (to Verizon or Sprint).

    But I’m not done yet! Then there is Steven Frank, one of the cofounders of Panic, who make excellent Mac software, including Transmit. He was so upset that wanted anything that was NOT on AT&T. He looked at Android and the Palm Pre and eventually wound up going with Sprint and the Pre. And he won’t develop for the iPhone at all due to the inconsistent policies on the App Store. And lastly, Tim Bray (well-known for his work on the XML standard among other things), who has an excellent Android Diary. (See his section entitled “Why Not iPhone?”)

    In addition, there have been the other times that AT&T has asked for the removal or change of applications in the App Store. Yet they claim they have no influence on what Apple puts in the App Store. Dan Cohen points out one such example on Gear Diary. And there are others. Like the removal of the tethering app from the App Store. And Sling Player only being available on Wifi instead of the cellular network. Other apps have the same restrictions where they same app on BlackBerry or Windows Mobile does not. It’s just that there is a centralized place that can be controlled. And that’s part of the problem.

    Also, AT&T allows customers to unlock a phone if they are traveling internationally. You just call them up and request it and they provide you with an unlock code so you can pop in any SIM card when traveling internationally. They’re not as open about this as T-Mobile is, but it is possible. Possible, that is, for EVERY phone they have except the iPhone. They will not allow you to unlock an iPhone. Even the original iPhone that my wife paid full price for (no subsidy). Even now that her contract is up, we cannot unlock her iPhone so she can give it to her sister in Thailand. THAT is egregious. And I hope the FCC does something about THAT as well.

    Google Voice is a paradigm shift. It removes need for a particular mobile carrier. In fact, it allows you to have multiple devices but manage your life as if you have only one. I think the aforementioned issues with crippling App Store apps on the iPhone specifically (and not on the BlackBerry, etc.) were an issue, but the FCC couldn’t do much about Sling Player being crippled. But a communications application that does SMS and voice? Yeah, that’s in their territory and they CAN do something about THAT. And I think that’s why they stepped in when they did.

    But again, I don’t think that this is necessarily all about Google Voice App Store rejections. It’s about the growing disenchantment that people have from some of the limitations of the iPhone ecosystem combined with the terrible service of AT&T. Those two things together are a pretty nasty combination. And Google Voice is something that is so attractive to the alpha geeks who have broad influence on blogs. It just blew up on itself.

    Me personally? I plan on moving back to T-Mobile. They are also a GSM-based carrier and I have an unlimited loyalty plan with them that is hard to beat. I get good coverage where I am 99% of the time (unless I’m in a large state park or something). And they have great international coverage and an international BlackBerry add-on that allows me to have full BlackBerry access internationally for $20 per month (and that can be prorated). No one else offers that. I’m voicing my distaste for this whole situation by porting my number back to T-Mobile and will use an iPod Touch via a Verizon Mifi instead of the iPhone. And I’ll file a complaint with someone (FCC? BBB? Not sure who is the best group to contact yet).

    I sincerely hope that Verizon does get the iPhone eventually. Competition can only be helpful in this case. At least for me, this was the straw that broke the camel’s back. I love the iPhone and the App Store. But I cannot use the iPhone as a phone. Maybe a media/game device with some other interesting network-enabled applications. But I can get that with the iPod Touch and Wifi. My phone needs to be a phone. And I see AT&T being an issue with me having reliable phone service.

    • http://www.keenerliving.com/ Bruce Keener

      Thomas,
      Thank you for going into such detail on this and for clarifying the situation. I think you have an excellent point about this being a “final straw” sort of issue. If I had experienced any of these difficulties myself, I would probably have understood the issue sooner … but, I just got my iPhone a month or two ago, and I live in an area where the 3G signal is not too bad … but the main thing is that I am home most of the time, so I am using WiFi for most of my iPhone tasks and not challenging the 3G. I do know that the 3G signal drops to about 0 level a couple of miles from me, and considering that I live in Marietta, close to the heart of AT&T operations, that gives me some appreciation for how bad it must be outside of the Atlanta area.

      I’ll need to give this some thought. T-Mobile does pretty good in my area, although they have a weak spot where I live. They do have excellent service though. I’ll give some thought to getting one of their plans and the G1 … it does look like an interesting device. But, again, having just gotten the iPhone, I’m a little reluctant to give up on it, especially since it does okay for my personal situation. I am troubled by the way AT&T appears to be behaving, though.

      Again, Thomas, thank you for your absolutely superb detailed comments. I appreciate all the references to the other articles, too, some of which I had not seen … so they will be good learning for me.

      • Thomas R. Hall

        I think that you should stick with the iPhone, Bruce. It’s a GREAT convergence device and you just got it! :) I don’t think that my opinion reflects the VAST majority of users. Actually, just a vocal minority. For every article I referenced, I bet that 99% of the rest of users don’t have issues with AT&T or mind what is going on with regard to the App Store rejection.

        I do wonder what it is like in downtown Atlanta during the business day. Especially on the highways during commute times. I bet that people get dropped/missed calls. The fact that you see signal issues not far from your house is a bit telling.

        Honestly, T-Mobile probably has less coverage for you. Verizon has the best coverage. When they complete their LTE network and move off of the CDMA/EVDO technology (and thus become compatible with International networks), I think they’ll be the solution for most folks. They do have World phones now, but I really prefer GSM-based 3G phones since they can simultaneously have data and voice connections going (CDMA puts the data connection on “hold” while on the phone).

        Also, Matt Miller’s post on the G1 states its advantages and disadvantages. There will no doubt be more amazing devices running Android in the future – it’s an immature market at this point. (The MyTouch 3G has no keyboard, but looks to be an amazing device otherwise)

        Thanks for allowing me a forum to post my thoughts, Bruce!

      • http://www.keenerliving.com/ Bruce Keener

        I do think you offer wise counsel, Thomas. I have no real need to switch, and frankly I love the iPhone so far. If I start getting dropped calls, then it could become an issue.

        Anyway, thanks again for adding your well-informed insights!

  • John

    Is this the Thomas Hall who used to write for Hal Goldsteins’ HP 200 lx magazine?

    I’ve forgotten the name of it.

    • http://www.keenerliving.com/ Bruce Keener

      Thomas will have to speak up on that, because that publication predates (by a little bit) my interest in Pocket PCs. But, I can say for sure that Thomas is the one who introduced Hal and me, which got me to contribute a few articles to Hal’s Smartphone and Pocket PC Magazine in late 2006 and early 2007.

    • Thomas R. Hall

      I wrote comments on some of the Smartphone and PocketPC Magazine entries, but no articles. Probably another Thomas Hall. Even with my middle initial, my name is still fairly common. You must have a very good memory, though, John!

  • Adrian Hosey

    The answer may be to ban carrier-exclusives for all phones, everywhere. I know that issue has been lurking in the wings for a while, the GV flap may be about to push it to the front.

    A laissez-faire capitalist (which I am not) might say that Apple’s exclusive deal with ATT is no different than (say) McDonald’s partnering with Mattel on the latest Happy Meal toys. Such partnerships are a valid competitive strategy. But, but! The airwaves are considered a public resource, and part of the FCC’s job is to shepherd that resource. If they decide the public is not being served by these deals, banning carrier exclusives seems like the right move. I’d rather see that, than see the FCC and the USAG spend millions of dollars constantly trying to determine which hardware+carrier partnership is violating the Sherman Act this week, next week, etc.

  • John

    Goldstein had a magazine that was completely devoted to the HP200LX. He published in the early to mid 90′s or thereabouts and I’m positive he had a writer named Thomas Hall. I thought maybe you and him were the same since there seemed to be a connection between you and Bruce through Thaddeus but I guess it didn’t go back that far.

  • John

    Adrian, I disagree. The FCC’s regulation of the airways has nothing to do with whether a carrier makes an exclusive deal with a phone maker. Apple’s exclusitivity with ATT in no way restricts yours or anybody else’s access to the cellular band.

    Just switch.

  • http://www.keenerliving.com/ Bruce Keener

    @John, I’m somewhat with Adrian on this. By and large I am a capitalist. But, I also recognize that the “just switch” philosophy is not practical for a lot of people. Termination fees are rather expensive, for one, as the cost of selling one device at a loss and buying another device, with most of the really useful devices being somewhat expensive. And, in some cases people want to stay with a carrier for other reasons … some may stay with AT&T, even if they are pissed, because the GSM works internationally. Yes, Verizon sells a World Phone, but it is the only phone they have that works internationally (I think).

    If Microsoft all of a sudden said you can’t run Firefox on Windows systems, would you recommend that Firefox enthusiasts just switch to Mac?

    It also seems to me that this does infringe on the openness of the internet, in that it is somewhat similar to AT&T saying you can’t use any of our equipment to operate Vonage or any other VOIP setup. I think that is why the FCC has taken such an interest in this.

    Normally I would agree with your position: if you are pissed at a company, ditch them and go with another one. This case seems to me to be a bit different, though. Maybe I’m overcomplicating the situation, but that’s how it seems to me.