SEO Blog • Organic SEO Blog Search Marketing News

Apple, AT&T Respond in Google Phone Spat

By The Wall Street Journal

WASHINGTON -- AT&T Inc. told federal regulators Friday that it played "no role" in Apple Inc.'s decision to keep Google Inc.'s Google Voice Internet phone application off the iPhone while Apple said that it hasn't rejected the software.

Instead, Apple told the Federal Communications Commission that it is still studying the Google Voice application, but said it has concerns about how Google's application puts the Google brand on Apple's device.

"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," Apple said.

The FCC is looking into why Google's phone app wasn't approved for Apple's App Store and whether AT&T, which has exclusive rights to offer the iPhone to customers in the U.S., had anything to do with it. In late July, the FCC asked all three companies for information on what led to the software's apparent rejection from Apple's online store.

In its letter to the FCC Friday, AT&T said it wasn't responsible for keeping Google Voice off of the iPhone and that it doesn't block consumers from using lawful applications on the Internet.

"AT&T was not asked about the matter by Apple at any time, nor did it offer any view one way or the other," said Jim Cicconi, AT&T's senior executive vice president for external and legislative affairs. "More broadly, AT&T does not own, operate or control the Apple App Store and is not typically consulted regarding the approval or rejection of applications for the App Store or informed when an application is approved or rejected."

AT&T said that it wasn't asked by Apple about the Google Voice app "nor did [AT&T] offer any view one way or the other," according to the letter.

Additionally, AT&T said that it plans to take "a fresh look at possibly authorizing [Internet phone] capabilities on the iPhone for use on AT&T's 3G network." AT&T currently restricts use of some Internet phone applications, notable Skype's phone service, on the iPhone to Wi-Fi networks.

Google also filed a response to the FCC about the matter, but redacted any information about its talks with Apple on its Google Voice app.

Thus far, the FCC's interest hasn't reached the stage of a formal investigation. FCC Chairman Julius Genachowski has previously told reporters that the agency is interested in finding out more about what happened in the matter.

An FCC spokeswoman said the agency was reviewing the letters.

Apple declined to approve the Google Voice application and related software developed by third parties in mid-July and some have speculated that AT&T had something to do with the decision.

AT&T has maintained for several weeks that it doesn't have control over Apple's App Store and that any decision to reject an application lies with the computer giant.

Google Voice doesn't replace traditional or wireless phone services since it requires users to have at least one other phone. Google Voice is more of a call directing service. Google Voice users choose a phone number that, if called, will ring all of the user's other phones. It also offers other services, like call recording and voice mail transcription.

However, Google Voice's cheap international calling rates and free SMS message service could be more problematic for wireless carriers, which make healthy profits on text-message fees.

It's not entirely clear what action the FCC could take against Apple to require the company to offer the Google Voice application to its customers.

The agency's inquiry, however, comes as its focusing more attention on competition issues in the wireless industry, including the issue of whether to ban exclusive handset deals like the one between AT&T and Apple for the iPhone. Next week, the agency plans to open broad inquiries into the state of competition in the wireless industry and whether to change truth-in-billing rules designed to prevent phone companies from tacking on extraneous charges onto subscribers' bills.