AT&T can block cheap net calls on iPhone

The terms in AT&T's exclusive US contract to provide connections for Apple's iPhone give the telecommunications giant the power to veto online store applications that use AT&T to launch cheap calls through the Internet, the companies disclosed late Friday. So far, the alliance has limited the use of approved Voice over Internet Protocol applications, including Skype's, to WiFi hotspots, so as not to undercut AT&T's model of charging for calls. But AT&T said "We plan to take a fresh look at possibly authorizing VoIP capabilities on the iPhone for use on AT&T's 3G networks." As it had previously, AT&T told the FCC the company had no general authority over applications in the App store. But it can and has become involved over a couple of other issues, including the use customer information and where "there were concerns that the application might create significant network congestion." That's why some applications that would stream live video have been limited to WiFi locations, AT&T's filing said, and why the Pandora music streaming service required some changes to the streaming technology being employed.