Episode 12: Google Tries To Take a Bite Out Of Apple
The Law Filed Under: Labels: apple, Google, Google Voice
080309.0210
Recently, Google released their new product Google Voice to its first batch of users on an invite list. Let me say at the onset that Google Voice is a VERY amazing application. It is primarily a modern day switchboard, allowing you to use one Google Voice phone number to redirect a call to up to six phones. This is very useful for business people as it allows one to give out a phone number that could connect to one’s cell or home phone number without giving people your personal number (for example, my GV number is now the number on my business card). Other great features include “Speech-to-Text” voicemail, so a message left on your GV number can be stored in the GV inbox (much like Gmail), delivered via text message, and/or delivered to your email account. It also allows one to send and receive free text messages from the GV number. Google Voice also has incredible international rates. I have a buddy I call in Canada a lot for example, where our long conversations run me $32 - $45 per call on my AT&T wireless plan. With Google Voice, that same call costs .45 to .60 cents! It is important to note that Google Voice is NOT a Voice over IP (VoIP) service. To make calls from GV, I have to dial a number into GV, either by calling my GV number or calling from my computer which in turn redirects my call or dials my phone and redirecting the call respectively. Thus, Google Voice requires an existing phone service to work.
When I created my Google Voice account, there was a message informing me that Google Voice would soon be available for the iPhone. As any enthusiast would, I checked the app store constantly for the app, and eventually saw the app GV Mobile, developed by Sean Kovacs. The app was $2.99 for the premium version (which mirrored all of Google Voice’s functionality) and a free version which allowed only the placement of phone calls. I opted for the free version awaiting a first-party app that would give me full Google Voice capacity for free. A GV app is pretty necessary because Google Voice has a serious caveat – it is incredibly cumbersome to use on a cell phone. As aforementioned, to place a call with GV on a cell you have to call your Google Voice number and then dial the number you want to call. What the apps allowed was full integration with the IPhone’s phone API, so I could simply use my contact list to place phone calls; the rest of the work was done behind the scenes. It worked great; making calls from GV was just like using my iPhone. I decided to upgrade to the full version to have access to the GV voicemail which worked just like the amazing Visual Voicemail. When I deleted the GV Mobile app to upgrade to the paid version, I couldn’t find it in the iTunes store. I thought I made a mistake and decided to Google the situation to see if others had the same problem. It turned out Apple pulled the app and all other Google Voice related apps from the App Store, as well as banned the first-party Google Voice app. Naturally, the developer of GV Mobile as peeved as he wrote in his blog, his app was initially accepted into the app store. He stated that Apple responded to the revocation of GV Mobile by stating it duplicated features the iPhone already comes with.
Now the blame game starts. Apple says AT&T pressured them to remove the app. AT&T says it has no involvement in Apple’s App Store practices. This is not my very strong Apple hatred speaking here, but it makes absolutely no sense for AT&T to object to Google Voice. Let’s consider the following:
1) When the iPhone came to AT&T (it was initially offered exclusively to Verizon) AT&T basically bent over backwards for Apple, giving them pretty much free reign to make the phone without too many restrictions. It stands to reason that Apple has AT&T by the cojones because they have gotten everything they asked from them, and AT&T has too much to lose by losing their cash cow.
2) Google Voice is NOT a VoIP service! In order to use GV, the user still uses their AT&T minutes. This point is still moot because a user has to buy a 2 year contract which AT&T unless they want to pay $600 for the phone. This is not an attractive option for the majority of consumers. The only problem is with text messaging which GV will do for free. But again, why would AT&T complain? More likely than not, a user would get 2 year contract and never presumably never use the AT&T text messages. But they still get their money. Personally, I’d prefer to text with my AT&T plan, and use GV text for business, but that’s just me.
3) If AT&T has a problem with Google Voice, then why didn’t it pressure Apple to remove Skype from the app store? Skype offers calls, free text messaging, voicemail, and full integration with the iPhone contact list API. Most importantly, IT MAKES CALLS! A Skype iPhone app would really be the biggest threat to AT&T because you can completely circumvent using AT&T by putting Skype on an iPod Touch and using the Apple headset/mic. There are still other apps like IM Free and TruPhone that would allow one to circumvent AT&T’s service and iPhone all together.
Now the only flag against Google Voice for AT&T is the international calling rates, which as you saw in my example crush AT&T’s service. AT&T still gets my airtime so while I’m not paying their exorbitant international rates, they are still getting my money. However, I’m willing to wager that only a very small minority of users make a lot of international calls, at least enough to put a dent in their bottom line. Resourceful people probably already use Skype anyway, so AT&T wasn’t getting their business anyway.
It seems to me that the real culprit in this case it Apple. Apple does whatever it can to maintain an Apple only platform. That’s the main issue here. Apple in its attempt to secure its “hip” image, stifles any kind of competition. They call it quality control, I call it repressive. This case clearly illustrates my beef with Apple – they limit my choices as a consumer because they want to draw me to their product. By restricting or stifling competition, Apple funnels consumers in a one way door. I believe the way to attract consumers is not by limiting my choice, but my making your option so appealing, I choose to use your service. And If l like one part of your service but not another, I should be able to customize my experience to my liking. Not with Apple, you are stuck with whatever option they give you and usually don’t have many other ways around it.
The FCC is now getting into the mix. Techcrunch has the story here. They are looking to see if Apple’s banning of Google Voice violates any competition laws. If Google wins, this will be a serious turn of events for Apple, as the floodgates of developers denied for “duplicate functions” will surface (for the record, when the App Store debuted, I said “what is Apple if 3rd party developers could freely develop apps for the App Store? Give up? Windows!”). It was only a matter of time before Apple could keep the lid on the development community.
It’s really too bad Apple has the best consumer Smartphone on the market (I still think Blackberries are better for enterprise usage). If there was a phone that could legitimately compete with the iPhone, I’d drop that sucka like it was hot, well after my new 2 year contract expires =/
Recently, Google released their new product Google Voice to its first batch of users on an invite list. Let me say at the onset that Google Voice is a VERY amazing application. It is primarily a modern day switchboard, allowing you to use one Google Voice phone number to redirect a call to up to six phones. This is very useful for business people as it allows one to give out a phone number that could connect to one’s cell or home phone number without giving people your personal number (for example, my GV number is now the number on my business card). Other great features include “Speech-to-Text” voicemail, so a message left on your GV number can be stored in the GV inbox (much like Gmail), delivered via text message, and/or delivered to your email account. It also allows one to send and receive free text messages from the GV number. Google Voice also has incredible international rates. I have a buddy I call in Canada a lot for example, where our long conversations run me $32 - $45 per call on my AT&T wireless plan. With Google Voice, that same call costs .45 to .60 cents! It is important to note that Google Voice is NOT a Voice over IP (VoIP) service. To make calls from GV, I have to dial a number into GV, either by calling my GV number or calling from my computer which in turn redirects my call or dials my phone and redirecting the call respectively. Thus, Google Voice requires an existing phone service to work.
When I created my Google Voice account, there was a message informing me that Google Voice would soon be available for the iPhone. As any enthusiast would, I checked the app store constantly for the app, and eventually saw the app GV Mobile, developed by Sean Kovacs. The app was $2.99 for the premium version (which mirrored all of Google Voice’s functionality) and a free version which allowed only the placement of phone calls. I opted for the free version awaiting a first-party app that would give me full Google Voice capacity for free. A GV app is pretty necessary because Google Voice has a serious caveat – it is incredibly cumbersome to use on a cell phone. As aforementioned, to place a call with GV on a cell you have to call your Google Voice number and then dial the number you want to call. What the apps allowed was full integration with the IPhone’s phone API, so I could simply use my contact list to place phone calls; the rest of the work was done behind the scenes. It worked great; making calls from GV was just like using my iPhone. I decided to upgrade to the full version to have access to the GV voicemail which worked just like the amazing Visual Voicemail. When I deleted the GV Mobile app to upgrade to the paid version, I couldn’t find it in the iTunes store. I thought I made a mistake and decided to Google the situation to see if others had the same problem. It turned out Apple pulled the app and all other Google Voice related apps from the App Store, as well as banned the first-party Google Voice app. Naturally, the developer of GV Mobile as peeved as he wrote in his blog, his app was initially accepted into the app store. He stated that Apple responded to the revocation of GV Mobile by stating it duplicated features the iPhone already comes with.
Now the blame game starts. Apple says AT&T pressured them to remove the app. AT&T says it has no involvement in Apple’s App Store practices. This is not my very strong Apple hatred speaking here, but it makes absolutely no sense for AT&T to object to Google Voice. Let’s consider the following:
1) When the iPhone came to AT&T (it was initially offered exclusively to Verizon) AT&T basically bent over backwards for Apple, giving them pretty much free reign to make the phone without too many restrictions. It stands to reason that Apple has AT&T by the cojones because they have gotten everything they asked from them, and AT&T has too much to lose by losing their cash cow.
2) Google Voice is NOT a VoIP service! In order to use GV, the user still uses their AT&T minutes. This point is still moot because a user has to buy a 2 year contract which AT&T unless they want to pay $600 for the phone. This is not an attractive option for the majority of consumers. The only problem is with text messaging which GV will do for free. But again, why would AT&T complain? More likely than not, a user would get 2 year contract and never presumably never use the AT&T text messages. But they still get their money. Personally, I’d prefer to text with my AT&T plan, and use GV text for business, but that’s just me.
3) If AT&T has a problem with Google Voice, then why didn’t it pressure Apple to remove Skype from the app store? Skype offers calls, free text messaging, voicemail, and full integration with the iPhone contact list API. Most importantly, IT MAKES CALLS! A Skype iPhone app would really be the biggest threat to AT&T because you can completely circumvent using AT&T by putting Skype on an iPod Touch and using the Apple headset/mic. There are still other apps like IM Free and TruPhone that would allow one to circumvent AT&T’s service and iPhone all together.
Now the only flag against Google Voice for AT&T is the international calling rates, which as you saw in my example crush AT&T’s service. AT&T still gets my airtime so while I’m not paying their exorbitant international rates, they are still getting my money. However, I’m willing to wager that only a very small minority of users make a lot of international calls, at least enough to put a dent in their bottom line. Resourceful people probably already use Skype anyway, so AT&T wasn’t getting their business anyway.
It seems to me that the real culprit in this case it Apple. Apple does whatever it can to maintain an Apple only platform. That’s the main issue here. Apple in its attempt to secure its “hip” image, stifles any kind of competition. They call it quality control, I call it repressive. This case clearly illustrates my beef with Apple – they limit my choices as a consumer because they want to draw me to their product. By restricting or stifling competition, Apple funnels consumers in a one way door. I believe the way to attract consumers is not by limiting my choice, but my making your option so appealing, I choose to use your service. And If l like one part of your service but not another, I should be able to customize my experience to my liking. Not with Apple, you are stuck with whatever option they give you and usually don’t have many other ways around it.
The FCC is now getting into the mix. Techcrunch has the story here. They are looking to see if Apple’s banning of Google Voice violates any competition laws. If Google wins, this will be a serious turn of events for Apple, as the floodgates of developers denied for “duplicate functions” will surface (for the record, when the App Store debuted, I said “what is Apple if 3rd party developers could freely develop apps for the App Store? Give up? Windows!”). It was only a matter of time before Apple could keep the lid on the development community.
It’s really too bad Apple has the best consumer Smartphone on the market (I still think Blackberries are better for enterprise usage). If there was a phone that could legitimately compete with the iPhone, I’d drop that sucka like it was hot, well after my new 2 year contract expires =/
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