Steve's Job

Apple rejects Google Voice app. This bothers a lot of people. What does a company like Google have to do, when Phil Schiller (Senior VP of World Wide Marketing) is rumored to have blessed Google's product development? Then top it off, Eric Schmidt even resigned from Apple's board!

GV Mobile's developer Sean Kovacs says that the app was personally approved last April by Phil Schiller, Apple's senior Vice President of Worldwide Product Marketing -- the man who often takes the stage during Apple keynotes when Steve Jobs isn't around. Kovacs says that Schiller called him to personally apologize for the delay in initially getting the application approved. Now, I'm sure Apple has laid out in its terms of service somewhere that you're not allowed to mimic the iPhone's functionality. But when you've got a blessing from that high up, that would seem like a pretty good indication that the application belongs in the App Store. More here.

So what's going on? Is Apple being the bully? AT&T? Maybe AT&T did ask Steve to reject the Google Voice app. Maybe Steve said 'ok'. Why?

Here's my entirely non-scientific, entirely non-insider, entirely speculative speculation:

Point 1. Steve Jobs hates AT&T. No - he hates the US Cell phone industry. No - he hates the entire cell phone industry. And the best way to disrupt the cell phone industry is to start by right-out-in-the-open-in-the-middle-of-the-playground-during-lunch-while-everyone-is-watching break the back of AT&T. Well - at least the US cell phone industry. It'll be a warning sign to the rest of the wireless carriers. Apple doesn't need you. You need Apple. Apple provides Hardware. Apple provides OS. Apple provides Distribution. That will be all - now go away and claw at the hardscrabble for your customers pennies.

Point 2. Steve Jobs is in a contract with AT&T. And as much as so many of his customers love the iPhone, but hate AT&T (you know...like how AT&T will add a hefty surcharge to their existing customers that have the gall to want to upgrade to the latest model of the iPhone) Steve can't just break the contract. It'd cost him heaps of shareholder value and a messy legal battle. It'd ruin his karma. And besides, Steve really needed AT&T to "validate" the iPhone in the US market. Particularly since AT&T has really broad (cough...monopolistic...sputter) coverage.

Point 3. Steve wants out of AT&T. While he's no stranger to disrupting the business of phone companies (literally - you can look it up) he doesn't want to be anywhere near the back-breaking when it happens. He'll want appear to have nothing to do with it. Matter of fact (and to continue the school-yard analogy), he'll be in the library studying Buddhism or meditating or something when this particular medical emergency to the cell phone industry and resulting 911 call takes place. But he'll want to appear blameless. He still want to be the messiah that people actually want to hang out with and invite to parties and stuff.

So he'll get others to unknowingly - yet willingly - even customer and constituent pleasing happily - do the back breaking for Apple.

But who? How?

By rejecting the Google Voice app.

So here's the deal. Everyone thought the Google Voice app was going to get approval - right up to Phil Schiller. Done deal, correct? But then, at the last moment, no deal. This pisses off a lot of people. And no one likes to get pissed off more than an otherwise powerless bureaucrat with a grudge/gun/badge/political appointment/tenure:

Federal regulators want to know if AT&T and Apple worked to together to reject mobile apps for Google’s innovative Voice service, sending letters to the companies asking them to explain this incident and the policies behind the secretive and lucrative iPhone App store...

According to the letters, the FCC wants to know the who, what, why and when of the rejection of the Google Voice app for the iPhone...

The FCC’s new chairman Julius Genachowski made it clear Friday in announcing the letters that he was not pleased by Apple and AT&T’s actions, while leaving wiggle room about what, if anything, the feds would do....

“Recent news reports raise questions about practices in the mobile marketplace,” Genachowski said in a press statement. “The Wireless Bureau’s inquiry letters to these companies about their practices reflect the Commission’s proactive approach to getting the facts and data necessary to make the best policy decisions on behalf of the American people.”

And the money shot you've all been waiting for:

The feds are already looking at mobile phone exclusivity — such as the lock AT&T has on the iPhone in the U.S. — to see if those deals hurt consumers. Outside groups are asking the feds to make mobile carriers adhere the same openness rules that apply to ISPs — e.g. letting them use whatever device, app or online service they want to use.

Back broken. Government will force the break up marriage of AT&T (no stranger there) and Apple. Imagine a bespectacled and mock turtle necked wearing Br'er Jobs testifying at a congressional hearing (which you'll be able to watch over C-Span and download via iTunes - oh what marketing!):

Oh please, Mr. Congress guy, please don't throw Apple into the Cell Phone Brier Patch! Please don't force AT&T to compete with other wireless carriers! Please don't put an end to long term cell phone service contracts that lock in customers and crush innovation and keep out competition!!! Please don't let other carriers all have access to my precious iPhone!!! Pleaseohpleaseohpppppleeeesssse!!!!

But Steve Jobs will be shown who's the boss. And Steve Jobs will get thrown into the brier patch. And Steve Jobs will be publicly spanked and pretend to cry himself to sleep.

Then what? iPod | iTunes | Music Store redux. Apple will get to keep the Hardware (again), the OS (again) and Distribution (again - albeit a "kinder, gentler" iTunes app store and approval process).

And AT&T? Well, along with all the other cell phone carriers, AT&T will now have to compete with the race-to-the-bottom-commodity business of charging people just to see who's trying to call them so they can send them to voice mail.

Of course, by then it'll be just in time for Google and Skype and others to start giving away phone calls over the internet for free.

Oh wait...they already do.