AT&T to take a "fresh look" at Internet calling for the iPhone

ByABC News
August 21, 2009, 7:33 PM

— -- AT&T on Friday confirmed what many have suspected: Its partnership agreement with Apple requires Apple to block "VoIP," or Internet telephony, on the iPhone.

In comments submitted to the Federal Communications Commission, AT&T, exclusive U.S. distributor of the iPhone, says it plans to take a "fresh look at possibly authorizing VoIP" or Voice over Internet Protocol "capabilities on the iPhone for use on AT&T's 3G network." AT&T added that it would "promptly update" the FCC "regarding any such change."

Such a shift, if it happens, would be a boon for iPhone users. Right now, VoIP services are limited to Wi-Fi, and are not carried on AT&T's cellular networks. As a result, iPhone users lose any VoIP connection as soon as they're out of Wi-Fi range.

VoIP sends calls over the Internet, not traditional phone networks, enabling users to make free or cheap calls for as long as they want without draining cellphone minutes. That's why consumers love it but big carriers like AT&T don't.

Roger Entner, head of telecom research for Nielsen, says consumers are the biggest winners. Once carrier blocks on mobile apps are removed for good, he says, consumers will enjoy the same sort of freedom that they have enjoyed for years on the desktop. ?This is the first step towards wireless net neutrality,? he says.

AT&T's comments were submitted to the government in connection with a larger inquiry on anti-competitive practices in the wireless industry. The FCC's probe was launched after The New York Times reported that Google Voice, a free voice application created by Google, had been banned from the iPhone.

AT&T, in its comments, said it had "no role in any decision by Apple not to accept" Google Voice.

Apple, in its comments, agreed that AT&T was not a factor in its consideration of Google Voice. Moreover, Apple denied that application has been rejected: "Contrary to published reports, Apple has not rejected the Google Voice application, and continues to study it," the company said.