Pajama Entrepreneur

It’s a dark, gloomy, rainy day in Amsterdam and I need a good laugh. This came in just in time to cure my blues (from Network World): Apple CEO Steve Jobs said Tuesday that it’s his company’s job to stymie hackers who try to unlock the iPhone — the first time the company has officially said it would fight attempts to use the popular device on unauthorized networks.

Why is this funny?

(1) Assuming I am an iPhone owner, which I am not, it’s MY phone. I bought it. The cellular operator isn’t even subsidizing it so I have every right to choose what I download onto the phone, how I use it, etc. When it leaves the store, Mr. Jobs has no right to tell me what the heck I am going to use it for and how. I can flush it right down the toilet, stomp on it, grind it into a thousand little pieces, it’s none of his damn business. He’s got his money, he should shut up and be happy.

(2) The hacker community “owns” the iPhone. Whatever fix Apple tries to apply to the device, the hacker community will come up with an update of its own to neutralize Apple’s “fix”. Apple is wasting time and money, and annoying its customers.

(3) Steve Jobs added: “People will try to break in, and it’s our job to stop them breaking in.” Wait - it’s my phone. I decided who to let in, not Apple. Apple’s “fixes” are intrusive. It’s Apple who’s breaking into MY phone.

But I don’t have to worry about this . . . for now because I don’t have an iPhone. I refuse to buy it unless it works on 21st century mobile networks - like 3G for a start.

Deutsche Telekom and Apple announced that T-Mobile, DT’s mobile subsidiary, will be selling the iPhone in Germany starting November 9 for 399 EUR ($550). In the US, Apple sells the iPhone for $399. There are enterprising individuals in the US selling the iPhone unlocked for under $450 (plus shipping) to anyone around the world. As I wrote in my earlier post on the iPhone’s launch in the UK, there’s no 3G, only the truly dreadful EDGE (the equivalent of dial-up on mobile networks).

T-Mobile announced it will be selling the iPhone in Austria, the Netherlands, Hungary and Croatia. Since T-Mobile bought my mobile operator, Orange Netherlands, I guess I will be getting a marketing pitch from them on the iPhone in the near future. I’m not buying it until it comes with 3G, possibly next year.

If there’s only one reason not to buy the iPhone when it launches in the UK in November, it’s the insulting price: $539 as opposed to $399 in the US. Adding to the insult is the fact that they will sell it locked, that is, you have to get a subscription via UK operator, O2. And there’s no 3G functionality in the phone. No, you have to be happy with crappy EDGE. Hey, why not sell a computer that works only on dial-up service and sell it to people who have broadband?

My prediction is that the iPhone will not be as successful as it is in the US. Residents of the UK should simply buy the phone from a US retailer and unlock it via one of the many iPhone hacks floating around the Internet today. If you buy it full price and lock yourself into an O2 contract, you are REALLY stupid.

I know, it’s 2007 and most cellular carriers around the world will sell you a prepaid plan without much ado. Heck, they’re so thrilled you’re buying service from them and not from a competing operator! But not AT&T, according to VC Fred Wilson, who says AT&T sells prepaid subscriptions for the iPhone only to people who are deadbeats. I still can’t believe it, but read his post: After about five minutes, the manager got on the line. I repeated my case, asked him to authorize a prepaid plan for my phone. He said he could not do so. That it was AT&T policy to only issue pre-paid plans to people with valid social security numbers who fail a credit check.

Vincent Everts posted this solution on Fred’s blog:

Fred, I had the same problem. If you add 00000000 or 123456789 as a social security number then you will be automatically enrolled in the pre paid program. I am a dutch alien I did not have a number. The first time I used the social security number of my son which is one year old and who had bad credit. But easier is to go to www.iphonehacks.com and get the phone unlocked. Then you can use any sim card you like. Takes about 45 minutes.

I guess one of the ways to get an AT&T prepaid card is to NOT pay your monthly subscription plan, so they automatically classify you as a deadbeat and then move you to the prepaid plan. Good grief!

I don’t understand why Fred Wilson encountered this problem. When you visit AT&T’s website, their prepaid plans section does not mention any strange restrictions (i.e. that you need to be a deadbeat first before they sell it to you).

Since the day of its launch, hackers have been working on a way to release the iPhone from carrier jail, specifically, AT&T jail. Engadget announced yesterday that the folks at iPhoneSIMfree.com have applied a software hack that allows you to use any SIM card with the phone. Click here to see details.

Since the iPhone is coming out in a few weeks in Europe with 3G capability, it makes sense to wait and buy it from one of the European retailers, then apply the hack.

Update: Alexander Casassovici unlocked the iPhone he ordered from the US so he could use it in France with his provider, Bouygues Telecom.