ATT Here comes the flood! Sink or Swim!

http://www.wired.com/epicenter/2010/08/first-look-netflix-for-the-iphone-arrives-and-does-not-disappoint/all/1

So Netflix has released the Netflix for iPhone app. Apple approved it. If you read between the lines Apple is validating that streaming video to the iPhone should be available. Since the ATT data plan is $15 for 200MB and $25 for 2GB this almost tells you that Apple is shopping carrier(s) that will allow this device/app combination to blossom. It won't do it with Edge for sure. What's ATT's angle? Just think about what they get to charge when unaware users download this app and stream 12 or so movies in the first month. 12 movies is almost 4.8GB. But if you look in the fine print you'll discover that for the DataPro package overage is charged at a rate of $10 per extra GB. So this would cost you about $20. However, at the cheap plan overage is charged at $15 per 200 MB over. So getting my calc out (and I will need my calc for this one) we see that poor subscriber will get a bill for ding! ding! ding! $345. If anyone had any idea that the Netflix app was coming to drive ATT's bottom line for the next quarter raise your hand!

Apple is losing it again.

Apple is making the same mistakes it did in the PC / Mac wars of the 90s. They have created a closed system because they want to own the whole system. This is similar to the early 90s when the Mac was being pushed. Apple never wanted outside developers to contribute and thus never published any Application Programming Interfaces. Microsoft went the opposite path and said "You want to develop for our platform? Sure that would be great!" MS provided extensive programming libraries and insight into the depths of windows... Look what happened. The PC took the prize.

Again Apple has created this great product, full of features and value, but they want to keep the system closed. Not only are developers forced to get approval for an iPhone app, but Apple has placed all all eggs in one basket with the exclusive contract with ATT. Verizon and other carrier's customers are chomping at the bit to get that kind of technology but don't want to switch providers. Enter Android. By maintaining the exclusive contract it made customers of the other providers look for an alternative solution. Now this solution has a bigger share than the iPhone. Allowing other providers to sell the Phone won't help now, it's too late. The consumer already has a taste of Android and it wants more.

All I can say is Steve, what were you thinking???

Other ways to send a payment

It seems that alternatives to the current expensive credit and debit transaction systems are evolving http://www.reuters.com/article/idUSTRE6710IH20100802.

The arrival of paypal, and iTunes suggests that companies are looking for a better faster cheaper way to let the money flow.

I have always said that the Phone company billing system is remarkably capable in being able to charge for essentially a micro-transaction (under $.10). Since the cell phone is an extension of the phone company billing system it seems logical that I should be able to send a payment from your phone to mine without having my bank contact your bank and settling the details…