ITWorld

The lack of innovation is

The lack of innovation is not solely the fault of manufacturers, Networks have always been resistant to change, as can be observed with the current rollout of the iPhone 3G. All around the world there are Telcos who refuse to support features like Visual Voicemail and even Caller ID!

The common story is that when the idea for the iPhone was originally thrown at Verizon, they refused it because it was too much of a departure from their current business model; They exact huge revenues every day from people listening to Voicemail on archaic aural menu systems, Locking users to their own value-added features like overpriced Ringtones and data synchronisation Over-the-Air.

The iPhone promised reduced Voicemail retrieval time, Listening to a users own music collection and synchronisation with the users own contact listings. All things that increased the Users Experience, but tore apart Telcos Profit Models.

I wouldn't be surprised if Apple also offered the iPhone to AT&T and Sprint too, before finally hitting paydirt with Cingular. AT&T may have even dissolved Cingular as punishment for undermining the Trusted Revenue Models.

Here in Australia, Telcos only recently discovered Value-Added features.
The iPhone is a huge threat to their Revenue since Consumers are not restricted to Telstra-sanctioned content; in fact the iTunes Store and Google Maps directly compete with Telstras BigPond Music, Foxtel Digital and Sensis Maps.