That iTunes phone under development by Motorola and Apple, the introduction of which has been delayed, received a blow when two major carriers—Verizon and Sprint—said they wouldn't carry it. Lack of provider support has put the phone in limbo, since phone underwriting by the cell companies is what brings new handsets to market. In this case, the carriers object to being cut out of the revenue loop provided by portable music. The Motorola unit is designed to synch with the computer, store music tracks, and play them back with a modified iTunes client. Verizon and Sprint intend to launch their own music services that will include mobile downloading … and they reportedly plan to charge two or three dollars per song. Hey, that's great news for the consumer: a surcharge on portability.
UPDATE: On the other hand, Motorola claims it is still on track to release its iTunes phone.
