iPhone 2.0 on June 27, no 3G music downloads?
updated 11:45 am EDT, Wed June 11, 2008
iPhone 2.0 before 3G?
Apple's iPhone 2.0 firmware, primarily built to support native applications and the App Store, should be available in advance of the 3G hardware many are expected to use it with, Engadget writes. The information comes by way of the Australian Apple website, in which the iPod touch section specifically states that the App Store will open on June 27th. Apple has previously said that the App Store will not function without the v2.0 firmware.
Apple has also long promised that the update would be available in late June, but until recently it had not identified any precise date for delivery of the software via iTunes. Statements at WWDC have pointed to a July release.
It is meanwhile rumored that there are no plans for permitting iTunes music downloads over AT&T's 3G network, despite existence of the necessary bandwidth. This is being attributed to either record label demands for increased premiums, or a desire for shared profits on the part of AT&T. The phone carrier would have to absorb increased bandwidth demands, and is already expected to turn no profit on the iPhone 3G until 2010, due to its heavy subsidization.



Fresh-Faced Recruit
Joined: May 2002
close but not exactly
"record label demands for increased premiums"
No doubt, the labels are demanding more $$ any way they can get it. But more specifically, the reason Apple can't allow 3G music downloads is it would require an actual renegotiation with the labels to permit wireless (non-WiFi) downloading. The labels have been short-sighted on virtually everything when it comes to the digital economy, but even back in 2002–03, they knew they were going to want to reserve the right to cut separate deals for cell-phone-based music downloads.