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Apple Plans 3G iPhone for 2008

<<<... "How this industry has gone about the handset business is so poorly done," he said. "The iPhone is the first shot across the bow. Here is this device that has such usability and functionality built into it, you can make a little money selling the handset and you can share the [subscription] revenue stream with the handset maker." Click here to read about T-Mobiles offer to let customers in Germany buy iPhones without a T-Mobile contract.

Stephenson also used the event to scoff at Verizons splashy Nov. 27 announcement that it plans to open its network to hardware and software not sold by the company. AT&T, he declared, is "probably one of the most open networks in the world." "We have thousands of people developing into our architecture today. All of the handsets we sell are Java-equipped. Who doesnt know how to develop into Java, right?" Stephenson said. "If you want to buy a handset on our network without a contract, fine. Just pay retail price for the handset. Right? The only reason we make people sign a contract is if were subsidizing it heavily." He added, "[All carriers] are all going to be open over time."

 As for a possible challenge from Google in the wireless space, Stephenson again stressed the "inevitable" move to open networks. He called a possible Google phone or a system supported by Googles open Android stack "interesting, well take a look at it. Itll be interesting to see if they can develop a carrier-class, scaled operating system." Ultimately, though, he said, "Our customers dont say they want a network. They say they want that phone and that capability. The company that wins over time will have the best quality and the best coverage."