This suggests that Google is not really out to get the telecom companies, in that it doesn’t want to be another phone company. “Google doesn’t want to step on any of the carriers’ toes. It simply wants access to the platform so it can do its work,” says Levy. But the fight could still get ugly—and not just with telecom companies, either. There’s a nasty battle brewing with the smart-phone makers too. Apple, for instance, has carved out a comfortable niche with the iPhone and it’s jealously guarding its place. Apple explained to the FCC that the reason it rejected Google Voice is that, when installed on the iPhone, it displaced several of Apple’s own features, including its basic telephone and voice mail functions. “Apple spent a lot of time and effort developing this distinct and innovative way to seamlessly deliver core functionality of the iPhone,” it told the FCC.
But trying to fight off Google is a risky game. Google has two big competitive advantages: it’s popular and it’s free. If a smart phone manufacturer like Apple or a carrier like AT&T tries to block its apps, Google may simply focus on improving how they run on its own Android-based phones. And everyone agrees that without Google’s cool apps for things like mapping and email, the iPhone would be a less popular device. This is something that Apple’s rival RIM appears to have clued in to. It quickly approved the Google Voice app for its BlackBerries.
Already, in both the U.S. and Canada, the phone carriers have started to fight back by offering their own similar services like voice mail transcription and single numbers that ring on more than one line. But they charge between $5 and $10 a month for them. That sets up an interesting dynamic, says Levy. Carriers might not like Google Voice, but they can’t hold off forever the kinds of changes it represents. Their best option may be to try to work with the company, perhaps forming some kind of partnership that would allow them to share in Google’s profit in exchange for giving the company greater access to their networks.
In the end, Apple and the telecoms may have to compromise. In its submission to the FCC, Apple backtracked on its opposition to Google Voice, arguing that it never really banned the app from the iPhone, contrary to widespread reports. The company “continues to study it,” Apple wrote. AT&T chimed in that it had nothing to do with the rejection at all. Google, meanwhile, told the FCC it will “continue to work to bring our services to iPhone users.” The relationship Google has with its mobile rivals is best summed up as “frenemies,” says Levy. They might not like each other, but they may have no choice but to work together if they hope to succeed.
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