A Google phone. So why the fuss ?

Tracking tech companies these days is like tracking movie stars and other celebrity. Will she marry that handsome dude she has been seeing of late ? Does that mean she has fallen out with that gorgeous hunk she was seen with last week at the Ritz ? And by the way, any truth to reports that she had had a silicone implant ?

There is abundant speculation in the mainline newspapers, trade publications and blogs that Google may be bringing out a mobile phone. Surely Google Inc. is loving it, as did Apple Inc. when all that speculative frenzy built up around the iPhone. Folks save them a lot of advertising bucks by doing their work for them. We had pre-announced the iPhone based on crumbs Apple fed us, and we are now trying to pre-announce the Google phone – whether it is a real phone or only software.

If Google brings to market a phone, that is nice. It is also nice every time Nokia Corp. or Motorola Inc. bring out a phone with some new feature. But it is nothing to get into a paroxysm about.

Yes, the PC changed the world in many ways, but another mobile phone will not.

In fact the mobile service providers will ensure that the phone does not go very far. Mobile service providers want control, and they will want control over everything that goes into that phone. Apple wrested control from AT&T by offering it exclusivity, but, despite the popularity of the product, remember it runs on only one network in the US.

The only way Google can play this game to its advantage is to buy wireless spectrum, and allocate it to buddies who will invest in mobile communications companies. There are reports they are going to do just that. But getting into the service provider business to make sure its content and applications is on the phone, is akin to starting up a PC company that ships only Google apps. Google does not seem to know what to do with its cash just now.

I am more inclined to take the view that Google like Microsoft Corp. may emerge as a provider of software and reference design to mobile phone makers like Nokia and Motorola. Miguel Helft at the New York Times is one of a number who are coming around to this view.

Microsoft hasn’t been very successful in this market because cell phone makers have always been wary of large companies invading their turf. That is the reason Nokia has invested in Symbian, a developer of software for phones. Google too will be seen as an upstart by entrenched phone makers.

Besides, if folks like Nokia use the Google software, they will still be required to tweak it for the operator, who may decide he wants Yahoo’s application, rather than Google’s.

But all this hasn’t answered my question. Why is everyone going ga-ga over Google’s new phone/phone software ? Are we so starved for excitement ?

Germany too will get iPhone on Nov. 9

As part of Apple Inc.’s marketing thrust into Europe ahead of the Christmas buying season, the company said on Wednesday it has partnered with network operator T-Mobile to introduce the iPhone in Germany on Nov. 9, the same date scheduled for the launch of the iPhone in the UK.

T-Mobile is a subsidiary of Deutsche Telekom AG. Apple announced Tuesday that O2 (UK) Ltd., a wireless carrier operator in the UK had been selected to offer the iPhone in the country.

As in the US, where it has an exclusive deal with AT&T Inc., Apple has also fixed exclusive deals in the UK and Germany. The popularity of the iPhone gives Apple the bargaining power to get around the insistence of service providers on controlling what software and hardware goes into consumer mobile devices.

The iPhone will however be more expensive in Europe than in the US. The phone will cost €399 (about US$558) in Germany and £269 ($538) in the U.K., with service contracts, ranging from 18 to 24 months thrown In the U.S., the price of the phone was brought down to $399, down from $599 at launch.

Apple is also expected to announce this week that the contract for France has gone to Orange, a mobile phone and Internet access business of France Télécom SA.

A number of hackers have tweaked with the iPhone's software to make it usable with the networks of other operators. These moves don't sit well with Apple's carrier partners who pay whopping fees for their exclusivity in each country. The higher prices of the iPhone, announced in Europe so far, coupled with expensive tariff plans, may provide an incentive to import these phones from the US, and unlock them for use on other networks, some analysts said.

The iPhone will also not be able to take advantage of faster third-generation (3G) mobile networks in Europe because 3G chip sets hog power, The New York Times reported, quoting Apple's chief executive Steve Jobs. By late next year, the iPhone may be able to take advantage of these networks, though in the meantime it could use Wi-Fi, a wireless local area network (LAN) standard, for high-speed Internet.

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Apple iPhone will be available in the UK through O2

iPod and the end of conversation

Apple iPhone will be available in the UK through O2

Apple Inc. ended weeks of speculation, by announcing Tuesday that it has selected O2, a leading wireless carrier in the UK, to exclusively offer the iPhone in the UK. The iPhone will debut in the UK on November 9, and comes bundled with unlimited free Wi-Fi access.

Apple sold its one millionth iPhone 74 days after it went on sale in the US on June 29, the company said. In the US, the company has an exclusive tie-up with AT&T for the iPhone.

By appointing exclusive carriers for each country for the much coveted iPhone, Apple is able to get better deals with the operator including better commercial terms, according to analysts.

AT&T, which in the past has demanded control over what software and applications go into end-user devices, had had to concede ground to Apple. In that sense Apple has shifted the balance of power in the mobile carrier market.

iPhone users in the UK will be able to activate their new iPhones using Apple's iTunes software running on a PC or Mac computer, without having to wait in a store while their phone is activated. Once iPhone is activated, users can then easily sync all of their phone numbers and other contact information, calendars, email accounts, web browser bookmarks, music, photos, podcasts and TV shows just like they do when they sync their iPods with iTunes, Apple said.

iPhone will be sold exclusively in the UK through Apple's retail and online stores, O2 and The Carphone Warehouse's retail and online stores. iPhone will be available in an 8GB model for 269 pounds sterling (inc VAT) and will work with either a PC or Mac. Three iPhone tariffs plans will be available from O2 starting at 35 pounds, which all include unlimited anytime, anywhere mobile data usage and free unlimited use of the Wi-Fi network, Apple said.

O2 UK is part of Telefonica O2 Europe which comprises mobile network operators in the UK, Ireland and Slovakia along with integrated fixed and mobile businesses in Germany and the Czech Republic. Telefonica O2 Europe also owns 50 percent of the Tesco Mobile and Tchibo Mobilfunk joint venture businesses in the UK and Germany respectively as well as having 100 percent ownership of Be, a leading UK fixed broadband provider. It is not clear at this point whether O2 will be the carrier as Apple expands in other European markets.

With the November 9 launch, Apple is in good time for Christmas shopping in the UK, where, if the experience in the US is any pointer, the iPhone will figure in a number of Santa's lists.

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eMusic’s foray into audiobooks may help aspiring writers

eMusic’s entry into the audiobooks market may help aspiring writers get an audience, though most of the top book publishing houses may stay away from the digital download site.

Starting September 18, audiobooks will be available from eMusic at a price of US$9.99, which is lower than the price for audiobooks at competitor Audible Inc. The music download site will likely try to further offer bargain prices on its audiobooks as it has done with its music downloads.

As eMusic uses the MP3 format and does not support DRM (digital rights management), it will very probably not have support from most of the big publishing companies, a problem that it faced with most of the large music labels, which shied away from offering their music on its site.

eMusic’s strategy around MP3 and DRM did not hurt the company. It is now the second largest vendor of online music downloads after Apple’s iTunes. That was because eMusic focused on small labels and aspiring musicians who were ready to trade DRM for an opportunity to feature on a popular site. Its low price also attracted a large number of users.

Apple Computer Inc. and Audible Inc., which is a large online site for downloading audiobooks, both use DRM technology. The DRM in downloads from iTunes blocks their use in devices other than the iPOD or iPhone.

Opposed for ideological reasons by a large section of Internet users, DRM is also found to be cumbersome by many who would like to rip CDs as often as they need to, and play the downloads on a variety of devices. Music companies, in particular, are seen to be using the online download route to curb the misuse of purchased music. Some of these restrictions are a far cry from the freedom still available to users to rip and mix, and copy to various devices tracks from traditional music CDs.

eMusic may hence be planning a re-run of its strategy with music. They are likely to aim at smaller publishers or aspiring authors some of whom may to start with just focus on audiobooks, rather than more expensive print editions of their books. eMusic has emerged as a filter for people looking for music, and now audiobooks, beyond what is sold by the big brands.

As I mentioned in an earlier blog post, while promoting lesser known artists, and now authors, eMusic will have to do a much better job than it is doing now in selecting talent, making its recommendations, and generally playing as a mentor to its customers.

eMusic will offer more than a thousand audiobooks from major audiobook publishers including Blackstone Audio, Hachette, Naxos Audiobooks, Penguin and Random House, with hundreds more to be added each week, it said in a statement. Subscribers will find regular reviews of the books by critics from top newspapers and magazines, it added.

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