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paidContent Why You Should Thank AT&T (Yes, It's True) Washington Post

23.07.09

But believe it or not, for all its well-documented network and service problems, AT&T actually deserves a debt of gratitude from mobile phone users, and not just its own subscribers. It has completely changed the way the wireless industry does business in the U.S. Without AT&T and Apple ( NSDQ: AAPL ), we would still be using our Razr and downloading ringtones and StarTrek wallpaper. Well, that's a little bit of an oversimplification, but here's what I'm talking about...

If you can remember back more than two years ago, Apple was asking for a lot. It wanted a partner that would not only subsidize an expensive piece of hardware, but that would hand over complete control of the device. In those days, that was unheard of. The carrier owned and dominated the experience. If you wanted to sell mobile games or ringtones, you did it through the carrier, and after each sale, you gave a sizable chunk of the revenues back to the carrier. Carriers operated what we all called "walled gardens," where all content not being sourced by the carrier was cut off to the consumer. To put that into today's terms, that frequently meant NO internet access and limited choices.

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