Foremski Exults That the iPhone Will Break the Telco Stranglehold

Posted on July 3, 2007
Filed Under Web News |

We exult with Valley watcher Tom Foremski as he explains what Apple has done with the iPhone: namely, slipped a Wi-Fi trojan horse into the Telcos’ deathgrip on the cellphone future. iPhone, says Foremski, will blow the “cartel” apart. This is turn will unleash massive creative forces. It’s a beautiful picture he paints.

In his recent post entitled - wait for it - “The Trojan Horse iPhone: How Apple will Break the Back of the Wireless Telco Cartel and Trigger Silicon Valley’s Next Boom Cycle” Tom Foremski lays out the compelling arguments for the scenario.

But first, he illustrates the nature of the telcos’ profiteering complacency:

I’ve long wondered why does my cell phone bill continue to increase year after year–yet the number of hours I have to talk hasn’t increased, the same black-spots are still there, and the overall service hasn’t improved one iota.

Telcos usually disable or charge highly for Wi-Fi access on their cell phones, rightly recognizing free wireless and Internet telephony as their death threat. But AT&T seems to have given up this kind of control in order to gain the exclusive that Apple granted them.

Foremski says this opens the gate for massive innovation and disruption:

The innovation will come from Silicon Valley and beyond, as startups and others develop applications and services delivered over the wireless Internet directly into people’s pockets. The barriers erected by the Telcos will be gradually removed as Wi-Fi hotspots become more common and eventually ubiquitous.

Tom is truly excited by the future that he thinks will follow from Apple’s lead:

Without the Telcos limiting access to the Internet, and trying to control handsets, services, and applications, we will see Silicon Valley launch into its next big boom cycle.

And from that, he paints the ramifications on a vast canvas. Give Tom Foremski’s iPhone article a read, to become inspired again.

:)

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