iPhone in Europe

After much hand-wringing and puzzlement over the US only release of the iPhone, Apple is slowly releasing the iPhone in European markets, although, not as attractive to users as it was for the US market. The plan is to release in the UK sometime in October 2007, and then go onto Germany on November 9, 2007. Although one can expects some amount of anticipation, there will not be the same buzz about the release as there was in the US market near its release. Many reasons for this lack of a buzz:
1. The industry to release a patched version of the iPhone that is not carrier restricted is in full swing, so a number of users would already have the iPhone in use with European networks.
2. Europe is far ahead of the US in terms of speed of telecom networks, with 3G being common, and the iPhone currently only supports EDGE which is a lot slower. For people already using 3G or planning to buy a phone to use 3G and get the high speed, the iPhone is a non-starter unless it gets a 3G version
3. Pricing is a major issue. The phone in the US sells for $399, and will sell for a converted value of around $540 in Europe which is a significant premium. Not sure how many people will buy the device at these prices.
4. Apple in the US has gone with a 2-year contract with AT&T for the service plan, but a long service plan is not par for the course in European countries. For customers used to paying on a regular basis and not getting locked into a contract, especially when the contract does not lead to a cheaper device, the iPhone will not seem so attractive.
will all these factors, one will just have to wait and see whether the buzz factor of the iPhone as a must have device is enough to overcome all these.

Gphone: Google Phone ?

There have been rumours of a Google phone (short form 'Gphone') for some time now. Now Google is a search company, or rather it is a company that is trying to do a lot of things, but which makes most of its money from search. It has tried to enter the mobile world through a tie-up with carriers about placing Google search in the mobile space. Now carriers are typically very hard creatures to work with; they don't allow much freedom.
And there was this revolution that happened. Apple released the iPhone in a tie up with AT & T, but shockingly for the telecom industry, it was Apple that called the shots. This was a new type of device with a lot of hype, and hence AT & T would have allowed this. But any such move does set a precedent that Google could easily try and copy:

The company, which has made billions of dollars in Web advertising on computers, is courting wireless operators to carry handsets customized to Google products, including its search engine, email and a new mobile Web browser, say people familiar with the plans. It wants to capture a big chunk of the fast-growing market for ads on cellphones.
Google has invested hundreds of millions of dollars in the cellphone project, say people who have been briefed on it. It has developed prototype handsets, made overtures to operators such as T-Mobile USA and Verizon Wireless, and talked over technical specifications with phone manufacturers. It hopes multiple manufacturers will make devices based on its specs and multiple carriers will offer them.

For Google, the mobile market is the hottest new emerging market, and must be the focus of a lot of strategy sessions at Google headquarters. Carriers have been not so easy to convince, but Google's might and the precedent of the iPhone could change things. If Google does come out with a cellphone, then one would expect more Wi-Fi integration and other methods of browsing, something uncomfortable to carriers since that is outside of their data plans.
The further advantage of having ads on cell phones is that they can be targeted better, and hence Google can ask for and earn more revenue per ad. One thing is sure, Google will do all they can to get an entry into this business, even if it means buying up spectrum and launching itself as a carrier.

Sprint network to use Google Search

Google is already a leader in the Internet Search market, is competing with Microsoft in the desktop search, and now has made an entry in the mobile search market. It has announced a tie-up with Sprint Nextel Corp that will add the Google search and mapping services to Sprint's high-speed wireless network. This is a good deal for Sprint in the sense that Google is a world-leader in the area of search and has an excellent brand name.
Sprint's plan is to create a high speed WiMax network that will be 5 times faster than today's networks, and will cover a city wide area. It can be used by devices other than mobile phones, given that it is actually a wireless network accessible by all devices that support this kind of connection. Once this network is rolled out, it is a service that Sprint will charge for, and Google will be available on the home page of this network.

The agreement gives Reston, Va.-based Sprint the prestige of working with the most popular search engine, along with a source of revenue, West said. For Google, the deal brings a way to extend its search engine into the mobile-device market.
West said Google will pay Sprint as part of the agreement, declining to be specific. Sprint and Craig McCaw's Clearwire Corp. said last week they would use a technology called WiMax to build a wireless network that's more than five times faster than today's standard.

This deal is a big deal for Google. Given the speed with which the mobile platform is proliferating and the increased tendency to build devices that allow for internet access, it is important for Google to be available on this platform. In addition, given that there is a class of devices that use Microsoft's Mobile platform, one can be sure that Google will not be the default search on those devices, so Google needs to network with all other providers and platforms.

Duke and iPhone resolve problems

Earlier this week, there was a major issue over the iPhone apparently causing a Denial of Service attacks on the Duke wireless network, and the issue quickly blew up. Apple would have been in the forefront of attempts to make sure that this issue gets resolved due to the potential bad publicity for the iPhone. Well, it's now blown over, and Apple gets a clean chit:

Initial reports of the problem placed the blame for the outages squarely on Apple's iPhones, which flooded the Cisco WAPs (Wireless Access Points) with thousands of address requests per second. However, in a statement released this afternoon, Cisco Systems admitted that the problem was caused by a Cisco glitch.
The problem could be particular to Duke. Other large universities—specifically the University of Wisconsin at Madison—have not experienced problems with its registered iPhones and Cisco-based Wi-Fi network, according to Dave Schroeder, an administrator in UW's Division of Information Technology. "We have seen upwards of 120 unique iPhones since June 30 on our campus-wide wireless infrastructure, which also uses Cisco 802.11b/g access points. To date, we have not encountered or detected any undesirable behavior from iPhones," said Schroeder. "As I have also not heard reports of errant 802.11 iPhone behavior from any other institution or site, it appears that the issue at Duke may be unique. There may be something unique to Duke's particular wireless installation configuration that the iPhone may be exposing," he added.

Of course, that is something that needs to be investigated further. There is something in the Duke network that was causing the problems to happen, and there is no certainty that such issues will not happen again.
There is an additional comment in the bottom of the article quoted above that could also cause certain problems

"My suspicion is that Duke's network requires Cisco's (Lightweight Extensible Authentication Protocol) security encryption and the iPhone doesn't have that incorporated into it. That could be a source of the problem," said Van Baker, a research vice president at Gartner in San Jose, Calif.
"Cisco's LEAP is an enterprise deployment not seen in the consumer market at all. The iPhone doesn't have a lot of the features you'd normally expect to see in an enterprise class phone," he added.

This was certainly a negative comment by an analyst, and this is something that Apple needs to quickly address. Apple would want this phone to be adapted in the enterprise segment as well, those segments carry a number of phones with them.

iPhone causing denial of service attacks

Could it be too good to be true ? The iPhone is one of the tech marvels that happens once in a few years, and it has shown itself to be a revolution in the designing of phones, although the restriction on carriers and the relatively slow network are acting as hobble-stones.
Well, in the latest news on this area, the iPhones have been caught to be behaving very strangely on the Duke University campus, with around 150 iPhones (a fraction of what would be available once the students come back from holiday) bring several wireless access points to a halt, in an imitation of a Denial of Service attack, probably the last thing that Apple wants to hear at this point:

The iPhone is flooding wireless access points at the US Duke University with MAC address requests, resulting in a denial of service-like attack that is taking out 20 to 30 access points for 10 to 15 minutes at a time – weird! The iPhones are asking for an address that isn’t on Duke University’s network, and when the iPhones don’t get a response, they keep on sending out requests, flooding the available bandwidth.
Help has been sought from Cisco, the maker of the school’s networking equipment, and technical support has been sought from Apple, although there is only speculation online as to precisely what might have caused the problem – Apple isn’t saying anything yet as it no doubt investigates the problem. When the fix inevitably comes, either the iPhone, Cisco’s equipment, or both, will simply be patched with a software update to resolve the problem.

So even though it will probably be a short-lived problem, the fact that such a problem occurred reflects badly on Apple's quality regime. And it is good that it happened at a time when the university was thinly populated, otherwise at peak times and if happening in a number of places at the same time, the problem would have been magnified many times and probably resulted in a loss of face for Apple.

Some Democrats criticize carrier restriction for iPhone

This seems a bit funny. During a Congressional hearing on regulation in the wireless industry, some Democratic leaders lit up on Apple and the iPhone for restricting usage only to AT&T as an exclusive carrier for 5 years. It was sought to be portrayed as a limitation to customers who either had other providers or who were located in areas where AT&T did not provide coverage. Seems a bit strange to be objecting to something that seems so central to how the wireless industry works:

The iPhone "highlights both the promise and the problems of the wireless industry today," said Rep. Edward Markey, D-Mass., chairman of the House Subcommittee on Telecom and the Internet. "This cutting edge technology breaks new ground … [but] consumers can't use this service with other wireless carriers" and those in areas not reached by AT&T cannot use the iPhone at all, he said.
Rep. Fred Upton, R-Mich., was less concerned. "Competition spurs carriers to innovate and build a better mousetrap," he said. "The iPhone is the newest mousetrap and now other carriers will be working to top it." Members convened the hearing to debate whether wireless service agreement regulation should be transferred from state public utility commissions (PUCs) to the federal government. The wireless industry has long favored a more national approach, but state PUCs are hesitant to give up control.

This restriction to AT&T has long been sought as a major weakness for the iPhone, since there will be a number of customers who will not be able to switch over to AT&T because of existing contracts. However, the iPhone is not a device that has a major share of the market, and there will be more devices that will come out of a similar nature that will allow people to use these devices. It is not in the nature of an anti-trust deal that requires lawmakers to comment. It would be nice if there was no restriction, but this is a commercial contract.

iPhone: The hacking race begins

In the past, there was a great market for cracking the service linkages of phones. The concept being, SIM based GSM phones in many countries are locked to service providers. They are much cheaper than their cost because of the service conrtract, with a subsidy being provided by the telecom carrier such as AT&T, SPrint, etc. This subsidy is provided because the contract normally locks the user in for a 2 year conract, and the company can recover the subsidy during this period.
The iPhone is a somewhat different model. AT&T does not provide any subsidy for the iPhone, with the full cost of the phone being the amount charged ($499 for a 4 GB one, and $599 for a 8 GB one); but Apple, presumably in a bid to repay AT&T over the allowances allowed to Apple while designing the phone prevents another SIM from being used in the phone. In addition, no functionality of the device such as music playing, video, camera, etc can be used without activation (which can only happen with AT&T in the US - and not yet allowed outside the US).
Thus the cat and mouse game between a company and hackers has now begun. The iPhone is a prime target for hackers and crackers, many seeing it as a game / test; and many seeing it as something worth a great deal of money. When Apple would have designed the phone, it would have been a priority to set the security of the phone such that the protection would have difficult to crack:

Locked phones can only be used with cellular service from one carrier, a move designed to guarantee carriers recover the cost of subsidizing a handset through monthly service charges. But the cost of the iPhone, which is priced at either US$499 or $599 depending on the model, is not subsidized by AT&T. Users must pay full price for the handset and sign a two-year contract, which requires them to pay from $59.99 to $99.99 per month for cellular service.
Unlocking the iPhone will enable the handset to be used with any cellular provider with a GSM (Global System for Mobile Communication) or EDGE (Enhanced Data Rates for GSM Evolution) network, not just AT&T's network. That's an attractive proposition for users who already have a cellular contract with another carrier, or users outside the U.S. who can't wait to get their hands on Apple's new handset.
Efforts to unlock the iPhone are being tracked on several Web sites, including Hackint0sh and the iPhone Dev Wiki.

This is also something that is a bit odd. If users are being made to pay the full amount for the phone, then they should be able to use the phone at their discretion. It is understandable if the iPhone was subsidized, in which case the service provider locks the phone until the subsidy has been paid. But to lock the phone till activation and prevent usage of other functions is very strange, and once could argue, an extra charge that a user has to bear for having the iPhone. Especially because the AT&T network has been shown to be a slow one, and limiting the speed of wireless browsing.
It is bound to happen sooner or later that the unlocking scheme will fail, and when that happens, it will be a pretty simple job to do this in mass. That will be time when the world proliferation of the iPhone begins.

The time involved in getting the iPhone to actually start working

In all the launch buzz of the iPhone, there has been an incredibly successful publicity campaign that has been run, and market watchers have been waiting to see whether Apple will do anything to trip up on this success story. Well, there is some news, just not enough to trip up the iPhone story, but enough to give a serious headaches to the thousands of people affected.
Normally, the process of wireless activation involves the sales person in the shop handling the activation process, something that would take rougly an hour. However, to make things easier for the large crowds expected, Apple changed the activation process to something that can be done via the user's own computer, through their version of iTunes. However, in the end, this caused problems for a number of buyers, with no clarity regarding contact numbers, and in many cases, with buyers having to spend more than 10 hours waiting for activation to happen.
This can actually be the most frustating thing in the world as of that point, if you imagine spending some time in queue to buy a new phone for around $600-700, and then having to wait while customer service tells you that you need to wait. Obviously, these are teething problems, and Apple should be happy that otherwise people are happy with the phone, otherwise this issue would have escalated into a disaster.

Apple and AT&T unveiled an innovative activation scheme with the iPhone launch. Usually, activating a new cell phone means spending almost an hour or so in a wireless store as the sales representative lights up the phone. But with the long lines expected last Friday, Apple came up with a way to use iTunes to connect to AT&T's activation process so iPhone customers could set up the device at home.
Activation was supposed to be a snap: hook up the iPhone to a Mac or PC with the latest version of iTunes installed, and the software would automatically walk you through the process. After entering a credit card number and selecting a rate plan, the system was supposed to send an e-mail confirming the iPhone had been activated. But waiting for that e-mail turned into a frustrating experience for some iPhone customers.
Other iPhone owners on Apple's Web site reported problems with the SIM (subscriber identity module) cards inside their iPhones. SIM cards hold information unique to a mobile phone account and allow users to easily switch between phones while keeping their numbers and contacts--except on the iPhone, which uses a SIM card that works only with the iPhone. It seemed that the activation system was unable to recognize the SIM cards in some iPhones, which led it to bypass the activation screen and move straight into syncing music, movies and contacts. One user reported that his local AT&T store switched the SIM card that originally came with his iPhone for a new one, fixing the problem. Others said they had done the same thing.

Of course, Apple made a feature that caused a lot of worry to those users who were not activated. Unless the phone was activated, users could not even access other features on the phone; this was something that Apple should have thought through much more clearly, and from the perspective of phone users, not from the perspective of AT&T.

The iPhone finally on sale

Finally, one of the most-awaited devices is on sale, and as expected, there are long queues waiting to buy the phone. But with prices of between $1,100 and $2,000 being quoted on Craiglist and eBay, it is an open question as to how many people are waiting to get it first and then immediately sell it, as opposed to those who are waiting to be one of the first to get their hands on it for personal use. Anyhow, the initial response would be good news for Apple. The iPhone is a major business milestone for Apple, and the success or failure (not meeting projected targets) would have a major impact on Apple.
If Apple can show the iPhone as a major success, they will be known as the company with a Midas touch, in tune with customer requirements and on the bleeding edge of design. If, however, there is a failure, then things will move the other way. The Apple stock, that has gone by more than 200% in the last couple of years will show the impact as well. Of course, as the example of the Playstation3 shows, it will only be with the passage of time that success or failure can be measured. Right now, it is the device fetching customers to shops:

Take San Francisco resident Jerry Taylor, 54, who was first to buy the iPhone from Apple's store near Union Square. After a brief moment in the media spotlight, he said he was selling the device, apparently to a mysterious man with a Scandanavian accent who stood next to Taylor, but who declined to give his name. In spending more than $650 for the gadget, including taxes, Taylor said he was "gambling with this month's rent."
In case you're one of the few who haven't heard, the iPhone is Apple's first attempt at a cell phone. Hyped for months - even years - the device is built around a large, touch sensitive screen, which takes the place of a physical keypad. Apple CEO Steve Jobs and a coterie of analysts, consumers and enthusiasts have predicted that the device will change the cell phone industry as much as Apple's Macintosh computers and iPod MP3 players changed the PC and music businesses, respectively.

It could be similar to what the iPod has turned out to be. The iPod is more expensive than most other music players of its category, but yet is an incredible success, chiefly because it has an incredible reputation. It is known as having an excellent design, with a great brand value and with a complete service infra-structure including good integration with a music purchase and download process (iTunes and store).

T-mobile allows cheaper calls through Internet

T-mobile has come up with a new concept to allow reduction of call plans overall cost, by allowing the use of alternative calling networks. What does that mean ? For a T-mobile user, if they have bought one of the 2 new handsets, and are either in a home wireless network or a Wi-Fi hotspot, they can move to using that mode of Internet access for their phones. This will typically prove to be much cheaper than the costing of a regular call plan.
Another plus promised in this new service (T-Mobile HotSpotAtHome) is the ability to get a much better coverage inside homes, something that a lot of customers typically complain about:

The service is the first time a cell phone carrier is using Wi-Fi to make calls. That could lead to a shift in the cellular industry as more operators begin to build dual-mode technology into phones, allowing people to cut down the cost of voice minutes.
To get HotSpotAtHome, T-Mobile customers will need to buy one of two $49 phones that can switch between cellular and Wi-Fi calls. In addition to paying for broadband, they will need to pay for the calling service, which can be added to cell phone service initially at $9.99 a month for unlimited Wi-Fi calls. After mid-September, customers will pay $19.99 a month to add the Wi-Fi service.. Family plans for up to five phones are available now for $19.99, then go up to $29.99 in September.

The handset is new, but the wireless router at home can be an existing router. There is switching between when a customer is making the call in a Wi-Fi area and then moves outside this network and onto the regular cellular network. People who have tested this service have found that it works well.

Privacy protection for email

There have been a host of privacy debates that have happened in recent times, essentially between the Bush administration and privacy advocates. The need to protect the US from terrorist attack, and including the need to detect such attacks before they happen, seems to have guided the US to break previous privacy protocols, and demand its right to investigate and demand information through snooping, wire-tapping and numerous other sources. The debate is over privacy seekers claiming that these measures are excessive and the Government is seeking excessive authority.
A lot of these measures have turned up in court, with people challenging some decision or the other of the Bush administration; in a recent judgement, the case of email was debated and a decision made, against the administration. The court has ruled that investigators in a Ohio fraud investigation had over-stepped their authority in getting emails from a internet services provider without a warrant, and that citizens have a reasonable expectation of privacy of their emails stored in web email service providers such as Hotmail, Yahoo and Gmail.
Even though this judgement was rendered by the Sixth Circuit federal court, if used by other federal courts, it could set a precedent.

Monday, the Sixth Circuit Court of Appeals in Ohio held that Internet users had a reasonable expectation of privacy in the content of personal e-mails being stored by Internet service providers such as Yahoo! and Google.
"It goes without saying that like the telephone earlier in our history, e-mail is an ever-increasing mode of private communication, and protecting shared communications through this medium is as important to Fourth Amendment principles today as protecting telephone conversations has been in past," the court said.
At the same time, the ruling could make it more difficult for government investigators to gather information on suspected criminals or terrorists, said Kerr. Investigators would have to gather more incriminating facts about a suspect before they could read personal e-mails.

Fundamentally, email has not been debated in the past like this decision, and whether this decision stays, or is over-turned by the full panel of the 6th circuit, or by the Supreme Court, will decide what laws Congress needs to make in this regard. And it is quite obvious that Congress needs to make more laws in this regard, since the whole question of email, privacy and the need of investigation, especially in the context of preventing terrorist attacks is a wide open question that needs more discussion. If this decision is not over-turned, it will set a benchmark to Congress in terms of what it can provide, and where it needs to draw the line.

AT & T exclusive with IPhone: a CDMA killer

The Apple iPhone has been a much awaited device ever since it was announced and displayed a few months back. Due in June, the iPhone will be available exclusively with AT & T, giving AT & T an automatic advantage due to the hype and media buzz around the iPhone. Apple is locked with AT & T for a period of 5 years, an incredibly long time, but equally importantly, in the battle between GSM and CDMA users (Sprint & Verizon), Apple has been prohibited from developing a CDMA version of the iPhone for 5 years. The fact that a leading device is not available on CDMA will automatically give GSM a push up in the standards war. Refer this article:

The Apple iPhone, due out next month, has been breathlessly hailed as offering consumers the ultimate wireless experience. It also could give AT&T, its exclusive U.S. distributor, the ultimate experience for a wireless carrier: an easy way to handcuff rivals and steal customers.
Apple is barred for that time from developing a version of the iPhone for CDMA wireless networks. That ban is no small thing. AT&T rivals Verizon Wireless and Sprint are both CDMA shops. AT&T uses GSM, a global standard incompatible with CDMA.
They also sparred over the iPhone. As previously reported by USA TODAY, Verizon passed on the opportunity to become the exclusive U.S. distributor, balking at Apple's demand for control over distribution, pricing, marketing and more. That left an opening for AT&T — then called Cingular — to cement a deal. (AT&T on Monday officially dumped the Cingular name and store signs now are being switched. The move came slightly ahead of schedule.)

There is intense competition between the major US carriers, AT & T, Sprint and Verizon, with all of them using all possible tactics to get a better market share. In such a case, if the iPhone becomes a major hit, it will give a huge advantage to AT & T, while at the same time, if people are put off by high prices, then it can be a disaster. Also, with the iPhone promoting a much better internet connection as well as songs downloading, more people will use higher data plans, increasing revenue for AT & T.