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Free the app stores

By | September 23, 2009, 10:53 AM PDT

I reported here yesterday how the FCC is looking to make the wireless Web as “neutral” as possible, insisting it work something like the wired Internet.

Few outside the Wall Street Journal editorial board want to break the wired Internet. The real fight is over the wireless web.

The regulators’ best asset here may be the tone deafness of the Bell companies.

While screaming that the FCC is trying to kill “the most competitive consumer market in America,” they are also preparing a power play on the most competitive part of the market, app stores.

Verizon vice president of regulatory affairs David Young told C|Net yesterday “we allow third-party developers and are providing developers complete access to our network.”

The key word there is allow.

Because a few months ago Verizon has centralized all app stores available on its network, to assure itself a cut of all app revenue, and it will not bundle third party app stores from suppliers like Blackberry or even Microsoft Windows Mobile with those phones.

Operators are “getting into the game,” as David Ginsburg of Innopath writes, all around the world. But in the U.S., right now, that means they control the game, completely. What claims to be wireless Internet service is really anything but — it’s a wireless data service totally controlled by your carrier.

If we want a true wireless Internet, in other words, the government is going to have to force carriers to give it to us.

Given a level playing field for all app stores it’s like Apple’s would still be dominant. But at least there would be competition, and efforts like Widgetpad, an open source mobile application development platform, would have a fair shot.

But that can’t happen on today’s wireless web, which is why America’s wireless web is worth a tiny fraction of what other nations’ markets are worth, on a per-user basis. And why those users get more for their money than ours.

Before freeing the wireless web completely, the FCC might want to start by freeing the app stores.

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Dana Blankenhorn

About Dana Blankenhorn

Dana Blankenhorn was a contributing editor for SmartPlanet from 2009 to 2010.

Dana Blankenhorn

Dana Blankenhorn

Contributing Editor, Technology

Dana Blankenhorn has written for the Chicago Tribune, Advertising Age's "NetMarketing" supplement and founded the Interactive Age Daily for CMP Media. He holds degrees from Rice and Northwestern universities. He is based in Atlanta.

Follow him on Twitter.

Dana Blankenhorn

Dana Blankenhorn

Dana Blankenhorn has been a technology reporter since 1982, a business reporter since 1978, and a writer for as long as he can remember. His Schwab IRA has a few tech stocks in it, most notably some Intel and Applied Materials bought over 10 years ago. But the vast majority of his tiny fortune (emphasis on the word tiny) is invested in mutual funds. He presently writes for no one else but ZDNet, SmartPlanet and himself. But if you've got an opportunity let him know. If he takes the gig he"ll first add it to this disclosure page.

He writes for SmartPlanet and is not an employee of CBS.

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