August 21st, 2009


AT&T is scared as hell of Google Voice on the iPhone.

Apple has an exclusive deal with AT&T in the U.S., stirring up rumors that AT&T was the one behind Apple rejecting Google Voice. How could AT&T not object? AT&T clings to the old business of charging for voice calls in minutes. It takes not much more than 10 kilobits per second of data to handle voice. In a world of megabit per-second connections, that's nothing—hence Google's proposal to offer voice calls for no cost and heap on features galore.

What this episode really uncovers is that AT&T is dying. AT&T is dragging down the rest of us by overcharging us for voice calls and stifling innovation in a mobile data market critical to the U.S. economy.

What's that you say? A large monopoly is erecting barriers to entry, making backroom deals to lock out competition, and generally doing everything they can to avoid anyone else getting into the biz?

Shocking. I am SHOCKED to hear this.

(BTW, how many times have you heard "AT&T is dying" before? I seem to remember hearing that at least two or three. And yet AT&T keeps rising from the coffin like a vampire...)