A top consumer and communications advocacy group called The US Consumer and Communications Industry Association, has told The Hill, that the proposed AT&T/T-Mobile merger will be bad for the app ecosystem.
The Mobile apps industry has been around since the Pam Pilot and website handango, but over the past 4 years the industry has seen explosive growth coming from iPhone and Android developers. The mobile app industry is on a trajectory to generate $29 billion dollars by 2015. However according to the US Consumer And Communications Industry Association, the proposed merger between AT&T and T-Mobile could stifle the app space.
More after the break
The association contends that apps and app distribution are key factors in differentiating devices and carriers. For instance some app developers already have a pre-installed relationship with T-Mobile where a competitor may have an app with the same function already bundled with AT&T phones.
The GSMA added in this mornings Mobile Business Briefing:
Both AT&T and T-Mobile already have significant smartphone and apps propositions, with the former offering Apple’s iPhone alongside a portfolio of Android devices, and the latter being something of an Android pioneer. With these two combining, the amount of power this alliance could wield over app providers is great, especially when they begin to align their value added service portfolios.
The President of the association, Edward Black, also suggests that there are several technology companies against the merger who are afraid to speak out because of their relationships with either company.
Another group called the Association For Competitive Technology takes a totally opposite position in the AT&T/T-Mobile merger. They argue that an AT&T/T-Mobile will have a positive effect on the mobile app ecosystem and that when the two companies combine developers will be able to reach more customers than ever before.