In addition to carrying one of Apple’s iconic smartphones, Richard is also the CEO of France Telecom, whose networks carry traffic from more iPhones than any other carrier except AT&T. France Telecom, with its Orange brands, sells the iPhone in 15 countries.

“They just created smartphones with the iPhone,” Richard said during an hourlong chat over breakfast in Downtown San Francisco last week. “Everybody should be grateful to them to have put such a product in our market.”

But, while he praises Apple, Richard is wary of the power that the company holds by having total say in which apps do and don’t get on its network.

Unlike with Android, where the carrier can largely configure phones the way it would like to, on Apple, the company has to settle for putting various services in the App Store. And, ultimately, it is Apple that controls what makes it into the App Store.

“Everybody is talking about net neutrality,” Richard said, but “net neutrality is not only dealing with pipes.”

“It also deals with management of application shops,” he said. “If you have people like Apple managing their application store and saying ‘This is OK and I don’t want to see this app in my shop,’ it’s a problem.”

In the interview, Richard offered a blunt take on a number of other key industry players and topics ranging from the need for variable pricing to the fates of Nokia and RIM.

Richard has been outspoken before, including calls last year for those flooding networks with data–companies like Apple and Google–to help pay some of the costs of making necessary network investments.

Though RIM and Nokia both face challenges, Richard said in our interview that he is glad that there are still a number of competing smartphone operating systems duking it out.

“For us we are quite happy with the existing landscape in terms of operating systems,” he said. “A world with 90 percent of Android-based devices would not be attractive for us, but we are far from that.”

Oh, and as for that report that France Telecom and Apple are working together on a standard for smaller SIM cards. That’s true, Richard said, and it’s a compromise designed to appease Apple’s desire for something smaller without resorting to a software-only virtual SIM card that Apple had initially been advocating.

Here were some of his more interesting comments from our conversation:

On the massive increase in mobile data use and the dangers that creates:

The real risk of everything is collapse. Nobody utters this loudly enough, but the real issue for the world is a collapse of the network or some local collapses.

We are the people with pipes. We are supposed to invest heavily in pipes in order to bring the capacity which is necessary to sustain the explosion of consumption and usage and data traffic in our networks. At the same time, the people that create this traffic…are not really incentivized to manage properly, globally, the traffic.

There is an unbalance in the overall system, which in our view is a major problem.

It is totally impossible to absorb such an explosion in traffic without first, clearly investing massively in spectrum and equipment, and second, without introducing some new pricing approaches.

On Microsoft-Nokia:

There are a lot of questions around Microsoft and Nokia–-capacity really to reverse the quite negative trend that they have in the market. It seems difficult, but we will see. We are still definitely in favor of seeing at least three or four big families of operating systems in the market. But it is true it is going to be difficult for them.

On RIM:

It’s not really declining. It’s still popular in Europe. They have customers and users that are quite faithful to them. It works more or less like a community of people. It’s often families that are big BlackBerry users, and of course companies.

They have had some quality problems in the recent period which is a concern, especially with the next generations of devices.

In my view as a customer, or as a partner of them, I think they really should fix very quickly their quality problems.

On Google and Android:

Android is, I think quite a solid and reliable operating system and doesn’t suffer with bugs. We have regularly problems with RIM. We have no problem with Apple and with Android. Let’s be frank and clear.

To me, the risk theoretically is more for Google to use releases–Android releases–as a weapon in their relationship with device manufacturers and indirectly with telcos than anything else. So far they have not really tried to do it.

On Apple and App Store openness:

Everybody is talking about Net Neutrality. Net Neutrality is not only dealing with pipes. It also deals with management of application shops. If you have people like Apple managing their application store and saying “This is OK and I don’t want to see this app in my shop,” it’s a problem.

So far, we have been able to come to solutions with Apple people, even though they are a little tough….We are able to find solutions. We are not at war with the Apple guys. But it is true that it can be tough.

Of course Ideally we would like to have those services embedded natively in the handset which is what we do with Android-based devices like with Samsung or HTC or people like that. It is not possible with Apple. We still are in a position to bring those apps to our customers through the app stores, provided clearly we have access to the App Store.

The problem is the day when Apple says “I don’t want this one.”

Definitely if we face these kind of problems we will go to court. Because competition is not only something that should be applied to telcos and to carriers. For us it should be a principle for the whole Internet environment.

On working with Apple on smaller SIM cards:

As you probably know, Apple has been working for years on reducing the size of SIM cards because they need space in the phone. They even thought about a device without any SIM card, that is what is known as the e-SIM project.

All of us told them it was a bad idea because the SIM card is a critical piece of the security and authentication process. It would be very difficult for a telco or carrier to manage the customer relationship. I think that they understood this point. We had a very constructive exchange and dialogue with them.

We are going to work with them in order to standardize a new format of SIM which takes into accout our needs with security and authentication and also is compatible with their wishes in terms of size.

I understood that the next iPhone would be smaller and thinner and they are definitely seeking some space.

This is good evidence we can work properly with Apple people, Apple teams. In that particular case, we have been able to find, I think, a good answer which is good for everyone.

On Tablets:
To be honest, I am still a little skeptical of the size of the world market in tablets. First, I do think the iPad is very well ahead of the competition in terms of tablets. To me as a user and as a partner, there is the iPad and there is the rest.

I think there will be a world market for the iPad. What will be, really, the size of this market, is difficult to say, because in fact it is a new market.

In fact I think that in the future people will have several devices, several screens. Nobody knows what is the mix or the range of devices that we will have.

At a press conference due to start any minute, the Taiwanese cellphone maker is set to show off a pair of Android phones–the Cha Cha and the Salsa–as well as its first tablet and several other Android devices.

HTC’s move follows that of INQ Mobile, which last week announced two Android models that feature heavy Facebook integration. Gemalto also announced Monday it plans to integrate Facebook into SIM cards, allowing users of low-end phones better access to the social network.

Like many others’ news here at the show, most of HTC’s had leaked out well ahead of the event.

One particularly nice touch–HTC planned ahead and ran Ethernet cables to each seat in the theater. (Unfortunately, Mobilized left the MacBook Air Ethernet adapter back in the apartment.)

Mobilized has live coverage of the event below.

9:58 am: Still waiting for the press conference–which was due to start a half hour ago–to get under way. We do have comfy seats and soothing music, but would have prefereed an extra half hour of sleep.

9:59 am: Apparently all I had to do was complain. Now it’s getting started with CEO Peter Chou taking the stage.

“2011 is going to be an amazing year,” Chou promises.

Some analysts predict smartphones will outsell feature phones, Chou says.

“Features that were once fancy, extra, are now becoming standard,” he says. “‘Nice to have’ is turning into ‘must have.’”

Hardware is important, but so are software and services like Sense and HTCSense.com. Company plans new versions of HTC Sense for phones with keyboards, larger screens, etc.

10:04 am: Some stats from Chou:

25 million smartphones sold last year, more than double the prior year, with revenue up 93 percent.

The company’s global brand awareness reached 50 percent, up from 13 percent a year and a half ago. (Of course, that means half of consumers still don’t know HTC, but a big improvement nonetheless.)

10:05 am: On to 2011: 4G networks will change everything again. HTC Thunderbolt, its first LTE smartphone, shipping this week with Verizon.

10:07 am: Company is announcing five phones today, the most it has ever announced at one time. Chou says.

“I hope you agree it has been worth the wait,” Chou says, bringing out John Wang, HTC’s chief marketing officer.

10:07 am: Talking about HTC Sense. Location-data for 83 countries. HTC spent a year and a half building the maps product. You can preload, so travel won’t cost a fortune in roaming charges.

Weather is another good example, Wang says, where the company aimed not just to provide information, but also offer an emotional experience.

“When it is sunny you almost feel the warmth on your body. When it rains, you almost want to wipe your phone dry.”

10:10 am: First demo fails as video he wants to show won’t play.

“Well, maybe later on,” Wang says, moving on to the new phones.

And another fails as whatever was supposed to happen isn’t happening.

Okay, here we go. HTC Desire S. And, we’ve got some more demo fail going on.

10:12 am: “We apologize for this,” Wang says, annoucing a few-minutes pause.

10:15 am: And we are back, with HTC Desire S, Incredible S and Wildfire S.

Desire S doesn’t have front and back. Machined out of a single block of aluminum. “It feels solid in your hand,” Wang says. Also has full HD video recording.

Wildfire S, smaller and in three colors. “It can almost disappear into your pocket. (Mobilized hates it when that happens. We’ve put two iPod Nanos through the wash.

10:20 am: HTC Incredible S. As you rotate the large Android phone, the icons on the buttons also rotate. 8-megapixel camera, integrated video chat with front-facing camera. “Incredible S combines premium design with premium experience,” Wang says.

So, essentially these are updates to the existing product line.

Next up, the Facebook phones.

10:22 am: There are 500 million Facebook users worldwide, but 200 million check it on their phones. Those users are twice as engaged. Many young people check Facebook right when they wake up with a significant number doing so from their phones before they even wake up, Wang says.

Now showing a video of HTC’s work with Facebook to build the new phones.

10:24 am: Video of Facebook CEO Marc Zuckerberg touting the device.

“A lot has been made about a Facebook phone,” Zuckerberg says, but adds that there will be more than a dozen phones this year with deep social integration. “HTC is doing that here.”

Mobilized is apologizing in advance, but I may not make it through the whole press conference.

10:26 am: The new phones–the Cha Cha (with keyboard) and Salsa (touch-only) both have a dedicated blue Facebook button at the bottom.

10:27 am: Can use button to post updates, but also if taking a picture can use that button to share social network. “When you press this button, the photo is instantly uploaded to Facebook,” Wang says. Button blinks also when reading an article on the Web. Press the Facebook button and it will share that on Facebook. Similar, when you are listening to a song, pressing the button will share that information.

If you hold button down, you check in on Facebook Places.

Both phones also support Facebook messaging and chat.

“We did not just add social networking to the phone,” Wang says.

10:30 am: Bringing up Facebook VP Chamath Palihapitiya to talk about the partnership.

“I’m just frankly very thrilled we are taking this very important step, which I think will be the first of many,” he says, saying he expects Facebook and HTC to do more things together.

10:32 am: Chou back up, saying he could just stop with five great phones and ensure another great year. But he’s not. There’s a tablet coming.

10:34 am: Chou says the company could have rushed out another “me too” experience, but says that wasn’t what the company wanted to do.

Showing video of how the company came up with its tablet, the HTC Flyer.

10:37 am: Chou holds up the Flyer, then hands things back to Wang. Flyer also has unibody design, which he says makes the tablet feel solid but keeps it lightweight.

HTC wanted it to be comfortable to hold in hand. At 415 grams it is about the same weight as a paperback book.

Here are a few features: 1.5GHz chip, 6-hour battery life, dual cameras, Flash 10 and HTML 5 support, along with new 3-D-based HTC Sense experience.

10:40 am: Also has a stylus–unique among Android tablets–HTC Scribe technology.

Allows you to share things more easily, Wang says. Just scribble “let’s go” on a restaurant Web page and press a button and it is sent.

You can also use it to do audio note taking–a la Livescribe, where notes are synchronized to the audio.

Mobilized has to jam to our next meeting, but I think we have hit the high points.

A security breach at AT&T has exposed the email address of thousands iPad owners–among them a who’s-who of the media and political elite.

Valleywag reports that by exploiting a vulnerability in the AT&T Web site, hacker group Goatse Security was able to collect email addresses associated with the SIM integrated circuit card identifiers, or ICC IDs, in the 3G version of Apple’s (AAPL) new slate device. And it collected some 114,000 of them–from New York Times Co. (NYT) CEO Janet Robinson to New York Mayor Michael Bloomberg and White House Chief of Staff Rahm Emanuel–before notifying AT&T (T) of the breach so the carrier could repair it.

Interestingly, AT&T claims it was a business customer who alerted it to vulnerability on Monday, and not Goatse or Valleywag. The carrier says that the only information compromised were ICC IDs and the email addresses attached to them. And contrary to some rumors making the rounds, AT&T says it is not advising iPad 3G owners to disable 3G.

Obviously, this is an ugly humiliation for AT&T. But as a security breach, it’s not devastating. The only data compromised were email addresses and ICC IDs. The former could be sold to spammers, and I’m not sure there’s much ill to be done with the latter. Which is not to downplay the severity of the incident. AT&T’s negligence here is deeply troubling–and worth remembering every time we entrust our personal data to someone else.

AT&T, which would not tell me exactly how many Apple iPad 3G users are affected, did release the following statement:

AT&T was informed by a business customer on Monday of the potential exposure of their iPad ICC IDS. The only information that can be derived from the ICC IDS is the e-mail address attached to that device.

This issue was escalated to the highest levels of the company and was corrected by Tuesday; and we have essentially turned off the feature that provided the e-mail addresses.

The person or group who discovered this gap did not contact AT&T.

We are continuing to investigate and will inform all customers whose e-mail addresses and ICC IDS may have been obtained. At this point, there is no evidence that any other customer information was shared.

We take customer privacy very seriously and while we have fixed this problem, we apologize to our customers who were impacted.

Apple did not respond to a request for comment.

“We had invested heavily to add a huge amount of additional capacity, 250 times its normal rate, and backup systems,” O2 said in a statement. “We tested this carefully in advance. The massive simultaneous crush exceeded even our worst-case assumptions. Demand was at 13,000 orders per second. Frankly, we have to admit we just weren’t prepared for this unprecedented level of demand. No website is.”

O2 Sees Unprecedented Demand for iPhone 3G

O2 today announced that Apple’s highly anticipated iPhone 3G will go on general sale from 8.02 a.m. Friday in O2, Apple and Carphone Warehouse retail stores. To ensure fairness, O2 will sell the device on a strictly first-come, first-served basis to both new and upgrading customers in all retail outlets.

Demand for the revolutionary device is already at unprecedented levels, far in excess of the original iPhone. ‘We’ve never seen any mobile device create the excitement and demand of the iPhone 3G,’ said Ronan Dunne, CEO of O2 in the UK. ‘We want to ensure that everyone who wants an iPhone 3G can get one, so we’ll be working with Apple to continually replenish our supplies throughout the summer.’

This morning, customers who had pre-registered their interest in iPhone 3G were given the opportunity to purchase via O2’s online shop (http://shop.o2.co.uk) a limited stock of devices that had been set aside. The response was so great that the online store completely sold out of iPhone 3Gs within just a few hours. Though O2 had invested several million pounds to increase the order capacity of the site (with order processing capacity increased by over 250 times its normal rate), at times the site still couldn’t process the sheer weight of demand.

Details of when new supplies of iPhone 3Gs will be available via the O2 online shop will be updated regularly via the website.

Business customers can, from today, also start placing orders for iPhone 3G through O2 business channels. Delivery timings will be communicated when an order is placed.

iPhone 3G combines all the revolutionary features of iPhone with 3G networking that is significantly faster than the first-generation iPhone. The device has built-in GPS for expanded location-based mobile services, iPhone 2.0 software (which includes support for Microsoft Exchange ActiveSync) and runs the hundreds of third-party applications already built with the recently released iPhone SDK. These can be accessed via iTunes.

The 8GB iPhone 3G will be available for free to customers opting for the £45 or £75 tariffs and £99 on the £30 and £35 per-month tariffs. The 16GB model will cost £159 on the £30 and £35 tariffs, £59 on the £45 tariff and it will be free on the £75 tariff. All customers will continue to receive unlimited UK data browsing over O2’s mobile network and unlimited access to over 9,000 Wi-Fi hotspots through both The Cloud and BT Openzone.

Existing iPhone customers can upgrade early to the iPhone 3G through O2 channels by re-signing a new 18-month contract, taking advantage of the same great offer as new customers. They will then be able to give their existing 2G iPhone to a friend, family member or colleague, who can transfer onto an iPhone tariff if they are an existing O2 Pay Monthly or business customer, stick in their existing O2 SIM and buy the appropriate Bolt Ons for unlimited data, or buy an iPhone Pay & Go SIM card from 11 July offering unlimited data and unlimited Wi-Fi access to The Cloud and BT Openzone hotspots for £10 per month. Full information is available on o2.co.uk/iPhone.

The iPhone 3G will launch on O2 Pay and Go (Prepay) in time for the Christmas shopping period, with pricing details to be confirmed closer to launch.”

Many others keep their landline-phone service grudgingly, only because it is needed for things like fax machines. But even they often use their cellphones at home, because their friends and family members dial their cellphone number routinely, and their personal phone books are inside their cellphones.

But there is a big drawback to using a cellphone at home, especially in a large house: You have to schlep it around with you from room to room. By contrast, landline phone service can be used via either cordless or corded extension phones. Now, T-Mobile, one of the big U.S. cellphone companies, is rolling out a new system that it hopes will make cellphone service at home more convenient and even cheaper to use.

The service, being introduced this month in two test cities, Seattle and Dallas, allows you to use a cellphone account with any corded or cordless home phone, with multiple extensions, for just $10 a month. That very low price gets you unlimited domestic calls.

This new T-Mobile service, tentatively called Talk Forever Home Phone, is likely to be available nationally in a few months. It works via a special Wi-Fi wireless router that you must buy, with a two-year contract, for a one-time charge of $50. The router, which can either replace or supplement your existing wireless router, is essentially a stationary cellphone that marries an in-home Wi-Fi network to the T-Mobile cellphone network.

I have been testing the new system and found that it worked well, and it was extremely simple to set up and use. For my tests, I used a cordless phone supplied by T-Mobile, which included a base station and one extension handset. I was able to make and receive calls all over my home in exactly the same manner, and with exactly the same quality, as I do with my normal cordless landline service.

While T-Mobile is selling this cordless phone as a $60 option, it isn’t necessary for use with the new $10 service. The only new hardware that is required is the special Wi-Fi router.

However, there are some significant downsides to the new T-Mobile service that might make people think twice about dumping their landlines. For one thing, it doesn’t work with fax machines, home-security systems and other devices that rely on dial-up modems. Also, unlike landline phones, it doesn’t automatically transmit your home address to 911 emergency centers. You have to manually supply that address to T-Mobile during signup, and the company then sends it to your local emergency center.

Another downside: You must be a T-Mobile cellphone customer to buy and use this $10 monthly home service, and your T-Mobile plan must either be an individual plan costing at least $40 a month or a family plan costing at least $50 a month.

Finally, while you can transfer your current landline phone number to this new service, it cannot share your existing T-Mobile cellphone number. So people who are used to calling you on your cellphone will still do so, and you will still have to race for the cellphone or carry it around to receive those calls. You also can’t transfer your cellphone’s address book to the new home phone.

The special router is made by Linksys and looks very much like a typical Linksys router, except for the fact that it has two standard telephone jacks in the back and slots inside for T-Mobile SIM cards, the same kind that are inside a T-Mobile cellphone.

You can use the special router as a replacement for your current Wi-Fi router, but I just plugged it into an existing port on my old router, inserted the SIM card, and then plugged the cordless-phone base station into one of the phone jacks. It worked immediately, and didn’t affect or degrade my existing Internet service.

In addition to enabling the phone service around my house, the router was also usable by my computers for Internet connectivity, though it doesn’t support the new, fast “n” flavor of Wi-Fi.

This new system is not a so-called voice-over-Internet-protocol phone system, such as Vonage. It doesn’t carry your phone calls wholly over the Internet, but merely uses the Internet to get them to the T-Mobile cellphone network, which then carries the calls as if they had been made on a cellphone.

T-Mobile says the system will work fine even if you don’t have T-Mobile cellphone coverage at your house, because the call doesn’t rely on the cellphone network for its first leg and only is routed to the cell network once it reaches a T-Mobile switching center.

If you are a T-Mobile customer and can live with this system’s drawbacks, the $10 monthly fee may be hard to resist. But this new system is far from a perfect replacement for landline phones.

• Email me at mossberg@wsj.com. Find all my columns and videos online, free, at the new All Things Digital Web site, http://walt.allthingsd.com.

]]> http://allthingsd.com/20080228/t-mobile-service-ties-cellphones-to-home-with-some-sacrifices/feed/ 0 http://allthingsd.com/20071204/german-iphone-ban-2/ http://allthingsd.com/20071204/german-iphone-ban-2/#comments Tue, 04 Dec 2007 16:18:37 +0000 John Paczkowski http://digitaldaily.allthingsd.com/20071204/german-iphone-ban-2/ T-Mobile’s $1,478 defeatured iPhone has been taken off the market as quickly as it arrived. A German court today dismissed an injunction won by Vodafone that had barred it from selling the iPhone only with a 24-month contract and a SIM lock that prevents users from switching to another wireless carrier.

T-Mobile met the news with a sigh of relief and promptly stopped selling the phone for 999 euros ($1,500) without a contract. Not that they were flying off the shelves at that price, although according to T-Mobile spokesperson Klaus Czerwinski, quite a few were sold. “It was hard to understand how somebody could buy it for that price,” he told ZDNet UK. “At the beginning I thought hardly any would be sold. It was a very expensive adventure.”

]]> http://allthingsd.com/20071204/german-iphone-ban-2/feed/ 0 http://allthingsd.com/20070928/ibrick/ http://allthingsd.com/20070928/ibrick/#comments Fri, 28 Sep 2007 12:01:22 +0000 John Paczkowski http://digitaldaily.allthingsd.com/20070927/ibrick/ Turns out “irreparable damage” was a fairly apt description for what Apple’s latest iPhone firmware update does to modified or unlocked iPhones. Issued yesterday afternoon, iPhone 1.1.1 update does indeed play havoc with modified iPhones, particularly those that have been hacked to work on non-AT&T networks. It wipes out all unsupported third-party applications and disables the Jailbreak hack used to install them. And it bricks unlocked iPhones. “The update will work OK in unlocked iPhones, but it will return your iPhone to the activation screen,” explains Gizmodo. “From there, no activation is possible. The iPhone doesn’t get bricked but, if you want to keep using it, don’t update your iPhone.”

Actually, it does get bricked out. Sources at Apple tell Ars Technica that the activation limbo into which unlocked iPhones are sent is the company’s definition of “bricking”: “Current attempts to reactivate across the Web are failing and therefore [a hacked] iPhone cannot be used to do anything–no phone calls, no Safari, no iPod, nothing. An unlocked iPhone that runs firmware update 1.1.1 is unusable no matter what SIM is in it.”

UPDATE:The Unofficial Apple Weblog (TUAW) reports that Apple Stores around the country are restoring bricked iPhones. “We’re not sure whether they’re doing a low-level reflash or just swapping units out,” TUAW explains. “We have reports of at least four customers who walked in with iBricks and walked out with iPhones. It is unclear at this time whether these customers unlocked their iPhones or not–we’re also receiving reports of iBricks from people who never unlocked or modded their units.”

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