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The Truth: What’s Really Going On With Apple, Google, AT&T And The FCC

August 22nd, 2009 Leave a comment Go to comments

 The Truth: What’s Really Going On With Apple, Google, AT&T And The FCCApple has responded to the FCC’s request for information around its rejection of various Google and third party iPhone applications for the iPhone.

In short, denies that they rejected the Voice application, but they go into great detail about how the Voice application hurts “the iPhone’s distinctive .” All of those statements are either untrue, or misleading, or both.

The first part of ’s argument, that they never rejected the application, is “a total lie,” according to many sources with knowledge of the Voice application process.

The second part of ’s argument, that the Voice application hurts the iPhone’s distinctive , is seriously misleading. I know this because I’ve become intimately familiar with the Voice service and applications over the last few months. See here, here, here and here, for example. I haven’t used the Voice app for the iPhone specifically, because it never launched. But I have been briefed by the team on two separate occasions on how the app would work over the last couple of months. Also, I’ve demo’d the version of the app, and now use the version of the app.

Here’s the key language from ’s letter, with my comments in italics:

: “Contrary to published reports, has not rejected the Voice application, and continues to study it.”

Reality: One third party Voice app developer disclosed to us in July that SVP Phil Schiller told them that ’s own app would be or already was rejected. also confirmed this to us later. There is overwhelming evidence that did in fact reject the application.

: “The application has not been approved because, as submitted for review, it appears to alter the iPhone’s distinctive by replacing the iPhone’s core mobile telephone functionality and user interface with its own user interface for telephone calls, text messaging and voicemail. spent a lot of time and effort developing this distinct and innovative way to seamlessly deliver core functionality of the iPhone.”

Reality: This strongly suggests that the Voice app replaces much of the core iPhone OS function. This certainly isn’t accurate, and we believe the statement is misleading. More details below, but in general the iPhone app is a very light touch and doesn’t interfere with any native iPhone apps at all.

: “For example, on an iPhone, the “Phone” icon that is always shown at the bottom of the Home Screen launches ’s mobile telephone application, providing access to Favorites, Recents, Contacts, a Keypad, and Visual Voicemail. The Voice application replaces ’s Visual Voicemail by routing calls through a separate Voice telephone number that stores any voicemail, preventing voicemail from being stored on the iPhone, i.e., disabling ’s Visual Voicemail.”

Reality: Not true and misleading. The Voice application has its own voicemail function, which also transcribes messages. But it only works for incoming Voice calls, not calls to the iPhone. The Voice app in no way “replaces” ’s voicemail function.

: “Similarly, SMS text messages are managed through the hub—replacing the iPhone’s text messaging feature.”

Reality: Not true and misleading. The Voice app doesn’t replace or in any way interfere wtih the iPhone’s text messaging feature. If someone sends a text message to your Voice number, the Voice app shows it. If it is sent directly to the iPhone phone number, nothing is different.

: “In addition, the iPhone user’s entire Contacts database is transferred to ’s servers, and we have yet to obtain any assurances from that this data will only be used in appropriate ways. These factors present several new issues and questions to us that we are still pondering at this time.”

Reality: Complete fabrication, way beyond misleading. The Voice app can access the iPhone’s contacts database, like thousands of other iPhone apps. But the Voice app never syncs the contacts database to their own servers. There is no option for users to do this. However, offers the ability to sync iPhone contacts with via iTunes. So not only is ’s statement untrue, but they also provide this exact feature themselves via their own service.

So how did answer the same question in their own separate letter to the FCC, also made publicly available today? We don’t know, because requested that the answer be redacted. But my guess is that the answer, which the FCC has and can compare to ’s response, tells a significantly different (approximately the exact opposite) story:

ga The Truth: What’s Really Going On With Apple, Google, AT&T And The FCC

Our sources at tell us in no uncertain terms that rejected the application. And we have an independent third party app developer who tells us that an Exec also told them back in July that the Voice Application was rejected.

In other words, there is strong evidence that is, well, lying.

Which also is the easiest was to explain ’s long rambling letter to the FCC. Why go into so much detail about the problems with the Voice application, and then say that it was never rejected? If the app does actually replace all of those core phone, contact and SMS features, why not reject it out of hand? I don’t believe anyone would say made the wrong decision (we have an answer to that, below).

Multiple sources at tell us that in informal discussions with over the last few months expressed dismay at the number of core iPhone apps that are powered by . Search, maps, YouTube, and other key popular apps are powered by . Other than the browser, has little else to call its own other than the core phone, contacts and calendar features. The Voice App takes things one step further, by giving users an incentive to abandon their iPhone phone number and use their Voice phone number instead (transcription of voicemails is reason enough alone). was afraid, say our sources, that was gaining too much power on the iPhone, and that’s why they rejected the application.

seemed to be fine telling and others that the real reason they wouldn’t accept the Voice app on the iPhone was a fear of being turned into little more than a hardware manufacturer over time as users spent more and more time on Voice and less time on the competing native iPhone apps. Or simply letting people believe that AT&T was behind the rejection. Until the FCC got involved, that is. Then denied the rejections and directed the FCCs attention to misleading or simply untrue factual statements about the App.

Of course, now both and AT&T are required to tell their side of the story to the FCC, too. And those stories aren’t adding up.

What Happens Next?

Here’s what we believe is preparing to do next. Their statement that they haven’t rejected the app, along with the long laundry list of complaints (none of which are true) tells us that they’re backtracking, and fast. Sometime soon, we guess, will simply accept the Voice application. They have to – any serious investigation into the app by the FCC will show that the complaints around the app are unfounded and that it does none of the things accuses it of doing. So will save face by simply asking to ensure that the App doesn’t take over native phone, sms and other functions, and doesn’t sync the contacts to ’s servers. will comply (they already have), and will graciously accept the application.

But we’ll all know exactly where stands – jealously guarding control of their users and trying to block and other third party developers at every turn from getting their superior applications in front those users.

This isn’t about protecting users, it’s about controlling them. And that’s not what should be about. Put the users first, Steve, and don’t lie to us. We’re not that dumb.

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 The Truth: What’s Really Going On With Apple, Google, AT&T And The FCC
 The Truth: What’s Really Going On With Apple, Google, AT&T And The FCC

 The Truth: What’s Really Going On With Apple, Google, AT&T And The FCC
 The Truth: What’s Really Going On With Apple, Google, AT&T And The FCC

 The Truth: What’s Really Going On With Apple, Google, AT&T And The FCC  The Truth: What’s Really Going On With Apple, Google, AT&T And The FCC  The Truth: What’s Really Going On With Apple, Google, AT&T And The FCC  The Truth: What’s Really Going On With Apple, Google, AT&T And The FCC  The Truth: What’s Really Going On With Apple, Google, AT&T And The FCC

 The Truth: What’s Really Going On With Apple, Google, AT&T And The FCC
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