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New Explanation for the Motorola iTunes Phone Delay

First

it was the cell companies' fault. Then it was Apple's fault. Now the balme has shifted back to the wireless providers, who, according to Business Week, are unwilling to support a phone that leaves them out the digital music revenue loop. Phone makers need the support of major wireless carriers to release new phone models, because the carriers subsidize the cost of the phones, giving them away or selling them cheaply in exchange for long-term customer lock-ins at 40-100 dollars a month. That's why you're stuck with the same cell company forever—it paid for your phone. The problem with the iTunes phone is that the cell companies want to sell music that ends up in the phone. Apple is the competitor.

So, Motorola can try partnering with a non-major cell provider, or try releasing the phone without any provider endorsement (good luck with that). All this back-room positioning sucks for the consumer, of course, who will end up either with price-gouging for music in the cell phone (as with ringtones), or will have none at all.

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