Carriers Stonewall Motorola's iTunes Phone

TheStreet.com: Motorola plans to hit it big with Rokr, it's "iTunes phone". But carriers don't want it, and stopped the handset maker from displaying the device at CeBIT. "A Motorola representative says there is "absolutely nothing wrong with the phones," and that the decision "had nothing to do with anyone other than Motorola." But analysts say the telcos canceled the iTunes phone debut party because they are in no mood to celebrate another feature that doesn't drive up network revenue."

This will occur more and more often, according to Yankee Group analyst John Jackson. ""This is a manifestation of conflict we'll see more and more as the phone takes on additional functionality." For the phone companies pouring billions of dollars into network upgrades for faster wireless access, every advance in digital media seems to represent another revenue opportunity they can't control, says Charter Equity Research analyst Ed Snyder.

Podcasting to your mobile? They won't like it. Transfer video from your PC to your mobile? They won't like it. Of course, it will come, customers will demand it and will eventually get it. If the operators won't allow it, the phones will get hacked...