Why Apple Can't Stop iPhone Hackers
AT&T and Apple may face an uphill battle prosecuting hackers that untether the iPhone from the AT&T wireless network — It sure sounds like a steal. On Aug. 31, George Hotz plans to trade in his iPhone for a metallic blue Nissan (NSANY) 350Z sports car and three brand-new iPhones.
Context & Ripple Effects
Five days earlier, a report on iPhone frustrations for criminal-forensics experts showed that access to the new device was already a contested issue. The unlocking dispute extends that contest to Apple and AT&T's carrier arrangement: technical workarounds have economic value, while legal enforcement appears difficult.
First-order effects
- Apple and AT&T face a weakened practical ability to preserve AT&T-only iPhone service when unlockers can remove the network tie and prosecution is difficult.
- George Hotz's planned Nissan-and-three-iPhones exchange makes the reward for a successful unlock visible, giving the technique a commercial incentive beyond personal use.
Second-order effects
- AT&T's exclusivity is more dependent on the iPhone's technical lock if legal remedies do not stop unlock distribution, putting the carrier arrangement at odds with buyers seeking network choice.
- Apple also confronts a consumer-facing challenge to the lock: a confirmed class-action filing places disclosure of the AT&T restriction alongside the hacker challenge.
Third-order effects
- If unlocking remains readily reproducible, handset-and-carrier bundles will be governed less by contractual exclusivity alone and more by the durability of technical controls and the terms disclosed to buyers.
The trend: The iPhone is an early example of platform governance shifting from a carrier contract to a contest over who can control access to the device's network interface.