The new (rumored) iPhone will be sold (rumored) directly from Apple and (rumored) require the user to pull the GSM SIM card from their device (only T-Mobile or Cingular use GSM domestically) and insert it into the iPhone. No hardware manufacturer has ever tried this, instead they bend to the wishes and requests of the carriers in order to gain acceptance and distribution of their hardware by the carrier.

Much effort has been expended by carriers to enter the content space�by selling ringtones, games, music, useless wallpaper rubbish, etc. They control the user experience and subsequently control the revenue generating services.

If Apple does indeed attempt to distribute around the carriers, and is successful, they will usurp this capability and turn the wireless carriers into ‘dumb pipe providers’. This is the carriers worst nightmare, and I would expect them to push the limits of anti-competitive behavior to stop Apple.

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