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Will Carriers Kill The iTunes Phone?







Will Carriers Kill The iTunes Phone?

Will Carriers Kill The iTunes Phone? 07/29/2004 04:48 AM

Apple (and Motorola) took a lot of people by surprise earlier this week by announcing plans to put iTunes on a mobile phone, but they may have left out one very important part: figuring out how the carriers get a cut. The wireless carriers are notorious for suppo rting closed systems, and making sure that they get a cut of any transaction that goes through a mobile phone. While this is a shortsighted move that has slowed down the creation and adoption of wireless services and applications, the carriers still insist on sticking to that plan, under the weird belief that they know best what applications and services subscribers will use (and pay for). So, now, many analysts are pointing out that for all the hype surrounding the mobile iTunes, there's a good chance carriers won't let it run on their phones, unless they somehow get a cut. Of course, for the smart carrier, this is a perfectly good opportunity to open up their offering. Giving subscribers an open platform with plenty of applications and services should generate more interest and allow the carrier to steal customers away from its competitors. Eventually, it will happen, but it may take a while.




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