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Is the iPOD phone a threat to mobile phone operators?

Cingular si Verizon are not rushing to provide it

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25th of March 2005, 08:27 GMT

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When it was announced, it seemed that the iPOD compatible phone developed by Apple and Motorola will surely be a success.

But controversies around this model have already started to increase.

After the last news related to the faith of the phone pointed out a difference of opinions between the two partners concerning the way in which the launching should be carried out, lately, it seems
that the true reason why the phone won't be released too soon is the unhappiness of mobile phone operators.

Cingular si Verizon weren't too enthusiastic about launching a phone that can download any type of music on the Internet, especially when it's not about a service provided by them, but by Apple.

Even if Apple were willing to share its profit with the cell phone operators, it wouldn't solve much. From the 99 cents paid for a song at iTunes, Apple only gets only 4 cents after paying copyright taxes and other expenses.

Instead of downloading one from the operators, users can set any song as a ring tone. Considering that a ring tone costs between 99 cents and 3 dollars, operators believe they will lose a lot of money which can only accentuate their unhappiness and fear of Apple.

In case Apple and Motorola won't succeed in proving the American cell phone operators that they will also benefit from iPOD, they can turn to a smaller player, like T-Mobile, or they can sell the phone without benefiting the support of an operator.

As the price for such a phone, without the support of the operator, can reach 500 dollars it is unlikely that people will rush to buy it.
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