Apple has officially answered the FCC publishing answers on their website. Short answer is they are claiming they acted alone in rejecting and removal of the Google Voice apps. Brave? Maybe. Stupid? Maybe. Will iPhone owners like their reasons? Maybe, time will tell? BUT this Apple fan and iPhone owner is NOT at all satisfied with their answers. I will take what I feel is the important parts one-by-one.

Apple claims “the App Store provides a frictionless distribution network that levels the playing field for individual and large developers of mobile applications.” I think the word “frictionless” is so leading, that all I could do was laugh! All I have seen with so many developers was FRICTION! Is this Apple being funny?

Apple: Apple works with network providers around the world so that iPhone users have access to a cellular network. In the United States, we struck a groundbreaking deal with AT&T in 2006 that gives Apple the freedom to decide which software to make available for the iPhone. This was an industry first.

ReelSmart: The ONLY industry first was the CONTROL that Apple holds with ONE App Store the ONLY source for iPhone apps. Software and apps were being created for years for smartphones and sold all over the place before Apple was ever in the mobile phone business. Nokia, RIM, Palm and Windows Mobile all had various app stores run by third parties without the same restrictions that Apple is now touting. I do not really see the great benefit to iPhone owners.

Using the word FREEDOM here, is really a joke. Apple has the FREEDOM to CONTROL what apps you can buy and use! Wow, I feel excited now. Kind of sounds like I might soon have the FREEDOM of allowing the government to CONTROL my health insurance. Remember when you had the FREEDOM to have any color Model T or Western Electric telephone as long is it was BLACK? Now that is FREEDOM we ALL can love.

What at does the deal with AT&T have to do with this? The exclusive deal with AT&T did not give Apple the FREEDOM to CONTROL your iPhone, their software restricting only “signed” code and the App Store does that.

Question 1. Why did Apple reject the Google Voice application for iPhone and remove related third-party applications from its App Store? In addition to Google Voice, which related third-party applications were removed or have been rejected? Please provide the specific name of each application and the contact information for the developer.

Contrary to published reports, Apple has not rejected the Google Voice application, and continues to study it. The application has not been approved because, as submitted for review, it appears to alter the iPhone’s distinctive user experience by replacing the iPhone’s core mobile telephone functionality and Apple user interface with its own user interface for telephone calls, text messaging and voicemail. Apple spent a lot of time and effort developing this distinct and innovative way to seamlessly deliver core functionality of the iPhone. For example, on an iPhone, the “Phone” icon that is always shown at the bottom of the Home Screen launches Apple’s mobile telephone application, providing access to Favorites, Recents, Contacts, a Keypad, and Visual Voicemail. The Google Voice application replaces Apple’s Visual Voicemail by routing calls through a separate Google Voice telephone number that stores any voicemail, preventing voicemail from being stored on the iPhone, i.e., disabling Apple’s Visual Voicemail. Similarly, SMS text messages are managed through the Google hub—replacing the iPhone’s text messaging feature. In addition, the iPhone user’s entire Contacts database is transferred to Google’s servers, and we have yet to obtain any assurances from Google that this data will only be used in appropriate ways. These factors present several new issues and questions to us that we are still pondering at this time.

The following applications also fall into this category – GVDialer / GVDialer Lite, VoiceCentral and GV Mobile / GV Mobile Free.

We are continuing to study the Google Voice application and its potential impact on the iPhone user experience. Google is of course free to provide Google Voice on the iPhone as a web application through Apple’s Safari browser, just as they do for desktop PCs, or to provide its “Google-branded” user experience on other phones, including Android-based phones, and let consumers make their choices.

ReelSmart: OK, now I get it, the Google Voice was NOT rejected, it is just NOT approved! REALLY? They are “continuing to study the Google Voice application” to see how much heat they can take from iPhone users and the government, most likely.

There are hundreds of apps being sold in the App Store that “alter the iPhone’s distinctive user experience” so this is just total nonsense. Making the case that most ANY app installed would “alter the experience of the iPhone.” I just reviewed nine turn-by-turn GPS apps, most all of them change the naive experience of the iPhone Map app and use a completely different UI, totally unlike the iPhone’s.

Apple is also pretending that they care about your safety here:

“In addition, the iPhone user’s entire Contacts database is transferred to Google’s servers, and we have yet to obtain any assurances from Google that this data will only be used in appropriate ways.”

REALLY, I don’t think so. Many apps use the same iPhone contacts the same basic way so this is a crock. None of the Google Voice apps allow for syncing contact information with Google’s servers, so this is a complete fabrication on Apple’s part. More interesting is that Apple allows syncing of contacts themselves to Google’s servers with iTunes and in the Address book on the Mac as a standard feature!

Sure Google WILL create a web app and it is wonderful to know that Apple is OK with that since they have no control. Just like AT&T has no control over RIM and Windows Mobile phones when it comes to SlingPlayer and Google Voice apps.

Most all the VoIP apps that are on the iPhone use the keypad and the contacts. Google Voice does not at all disable the iPhone’s visual voicemail. It just has a voicemail that can transcribe to text as part of its service. Skype has voicemail and is on the iPhone.

As far as SMS it is clear that Apple is protecting AT&T here. AOL, BeeJive, IM+, Text Free all bypass the iPhone’s SMS. These are all available in the App Store. If someone sends a text message to your Google Voice number, the Google Voice app shows it. If it is sent to your iPhone phone number, nothing is different. Precisely, the same way that most all the instant messaging and SMS apps do already in the App Store.

Shouldn’t iPhone users have the choice of the way their iPhone works when they PAY and download an app? Apple seems to want to say they have approved so many apps, so it is OK to reject and remove apps without notice that they deem competes with them or their partners. Leaving their own customers who paid for these apps and depend on them. If iPhone customers complains loud enough, Apple’s answer is to refund the price of the app, that actually costs them nothing as the developer has to pay for the refund. The same developer that slaved building an app that was sold to a satisfied customer and had the rug pulled out from them without notice for no reason created by them.

Apple: AT&T’s customer Terms of Service, which, for example, prohibit an AT&T customer from using AT&T’s cellular service to redirect a TV signal to an iPhone. From time to time, AT&T has expressed concerns regarding network efficiency and potential network congestion associated with certain applications, and Apple takes such concerns into consideration.

ReelSmart: AT&T has changed is “terms of service” so many times it is not funny. Just before SlingPlayer was to be released they changed their “terms of service” adding the provision for “redirect a TV signal” which was accompanied with many complaints by their customers. AT&T claimed it was posted in error – a week later it was back. This is why SlingPlayer Mobile was rejected until it was made to work over WiFi ONLY. Qik was also not allowed to stream video. Meanwhile, MLB.com At Bat for the iPhone streams EVERY major league baseball game over 3G on AT&T’s network. PLUS, SlingPlayer Mobile and Qik which is available on Blackberry and Windows Mobile on AT&Ts network stream TV over 3G daily! Also Apple has been playing around with Akamai streaming live events on the iPhone.

Question 4. Please explain any differences between the Google Voice iPhone application and any Voice over Internet Protocol (VoIP) applications that Apple has approved for the iPhone. Are any of the approved VoIP applications allowed to operate on AT&T’s 3G network?

Apple does not know if there is a VoIP element in the way the Google Voice application routes calls and messages, and whether VoIP technology is used over the 3G network by the application. Apple has approved numerous standard VoIP applications (such as Skype, Nimbuzz and iCall) for use over WiFi, but not over AT&T’s 3G network.

ReelSmart: Gee, they claim in question 1 that they are studying it. Three Google Voice third party apps were removed after being approved and sold in the App Store for months and even with several updates approved. Google CEO Eric Schmidt was on the Apple board for years and just recently stepped down. Apple has some of the best engineers in the industry. Are we to believe that “Apple does not know if there is a VoIP element in the way the Google Voice application routes calls and messages, and whether VoIP technology is used over the 3G network by the application.” Are you kidding? Really? Seems that this would not be hard to determine.

Google Voice uses cell minutes and is NOT even a VoIP app. When using Google Voice to “call” some one it rings your iPhone and then rings the person you are calling.

Apple goes on to explain the approval process and why apps are rejected for software bugs and objectionable content like porn, etc. All very noble, but hardly explains why any Google Voice apps were rejected or removed as it contains none of this content or reasons. The only crime the Google Voice apps have committed was being thought to compete with Apple and AT&T. I will point out that Gmail still does not have push mail on the iPhone. I have to wonder why?

Apple simply does not want to make it easy or seamless for iPhone users to use Google’s phone service. PERIOD.

Apple’s approach here will probably not be very popular with the most technically aware users (like the ones who read this blog), but the masses they are counting on for their continued success will for the most part be oblivious to their stance.

I am sure some will read this and think Apple owns the iPhone, owns the SDK developers use and the App Store. Sure this is true, but think – Apple owns the Macintosh, so it can control every app I can buy? I bet few would agree with that statement. I do not see how this level of control that I believe is being abused, is going to help the iPhone platform in the long run. The competing mobile platforms will have and some already have these innovative apps, EVEN on he same carrier. Apple seems to be its own worse enemy here.

Personally, I will jailbreak ALL my iPhones. In the future I will be seriously considering OTHER smartphone platforms. Only time will tell if the government can or will break up this nonsense. They already have made statements that show they are against “exclusive” agreements. So we will have to wait to see what will happen next.

Both AT&T and Apple’s response deny any wrongdoing, with AT&T denies any involvement at all, which seems like nonsense to any sensible person. Apple seems to want to allow AT&T cover and take the blame. Probably because AT&T would have more problems with the FCC, then Apple would. For the third piece of the puzzle see Google’s response to the FCC available on TechCrunch.

Gizmodo points out, the most interesting in AT&T’s statement is regarding VoIP. It seems like Apple could actually allow Skype over 3G, if it wanted to (though AT&T would really prefer all VoIP apps run over Wi-Fi), and they agreed when the iPhone contract was first forged that Apple would not make its own VoIP app, meaning a video iChat probably will not be seen for a long time (explains why the iPhone does not have a front facing camera):

Part of the AT&T Statement:
“AT&T and Apple agreed that Apple would not take affirmative steps to enable an iPhone to use AT&T’s wireless service (including 2G, 3G and Wi-Fi) to make VoIP calls without first obtaining AT&T’s consent. AT&T and Apple also agreed, however, that if a third party enables an iPhone to make VoIP calls using AT&T’s wireless service, Apple would have no obligation to take action against that third party.” See AT&T full statement [PDF].

Palm, Microsoft, RIM, Nokia and other smartphone makers may very well be able to capitalize on Apple’s self imposed limitations. It has already started with the Google Public Policy Blog: Android and VoIP apps – which basically says we don’t block Skype or VoIP apps. If Apple does not put USERS first they will pay the price, USERS are not dumb.

Apple does give us a very small peek through their secret process into the App Store review system: There are ONLY 40 full-time reviewers for the thousands of apps submitted, and at least two of them must review each app. Apps that look like they have an issue are escalated to an executive review board that meets “weekly.” Even with these self inflicted constraints, Apple says 95 percent of apps make it through the review process within 2 weeks (probably the fart apps) – 20 percent of them are rejected. And incredibly they’ve reviewed over 200,000 apps and updates.

Apple: “We receive about 8,500 new applications and updates every week, and roughly 20% of them are not approved as originally submitted. In little more than a year, we have reviewed more than 200,000 applications and updates.”

8,500 per week with ONLY 40 reviewers works out to 212 apps per reviewer per week — about 40 per day OR 5 per hour for a 8 solid hour day! Sounds impossible to even look at them at this rate.

The next time one of my Microsoft loving friends tell me Apple is too controlling I will not defend or disagree. Not even Microsoft abused their control like this! The best is that this tactic could in the long run, backfire big time.

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