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Comments: 114 +-   Apple To Sell Wi-Fi-less iPhone In China on Saturday July 11, @07:15AM

Posted by Soulskill on Saturday July 11, @07:15AM
from the also-adding-special-tinfoil-bezel dept.
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Hugh Pickens writes "Business Week reports that the Chinese government has received an application from Apple seeking a Network Access License to sell the iPhone for officially-sanctioned use in the country. However, the application is for an iPhone that does not include Wi-Fi connectivity, a sticking point in negotiations with the Ministry of Industry and Information Technology, which wants the phone to only run on the cellular networks. 'Apple was hellbent on having the iPhone be Wi-Fi-enabled,' says analyst Matt Mathison. 'The Chinese government has been just as adamant that it not be.' For many years now, China ministry officials told wireless consumers that Wi-Fi would not be allowed on mobile phones for fear that consumers might be tempted to illegally load VoIP apps and make calls over the Net, undermining carriers' interests. However Glenn Fleishman says that China uses WAPI, a homegrown proprietary extension to Wi-Fi that only a handful of Chinese manufacturers have access to, and that equipment sold in China must have WAPI support and chips made in China. Fleishman speculates that China's WAPI standard contains backdoor technology to allow China to monitor any communications sent over 'secure' links."
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  • by Stu101 (1031686) on Saturday July 11, @07:19AM (#28659117)

    Since when has loading an application on the iphone been illegal ? Mind this is Apple!

  • by sakdoctor (1087155) on Saturday July 11, @07:25AM (#28659145)

    WAPI is only for the inner party. The proles get bog standard WPA2 consumer equipment.
    Also, Chinese consumers will get the WiFi enabled one on the black-market.

    In general, the more government interference, the better developed the black-market will be.

    • Re: (Score:3, Insightful)

      More government interference means more enforcement and a more sophisticated and much more expensive black market. This means far fewer sales of the banned product.

      Black markets are large for items that are banned but have weak enforcement and small penalties.

      Additionally, Apple highly controls the sale of iPhones, so a black marketer cannot just buy a bunch in one locale and sell them in another.

      An iPhone is expensive to begin with. A large premium will skyrocket the price of black market iPhone. The va

      • by Macrat (638047) on Saturday July 11, @08:53AM (#28659569)

        An iPhone is expensive to begin with. A large premium will skyrocket the price of black market iPhone. The vast majority of the Chinese iPhone purchasers will not pay this premium for a single feature.

        A large part of having an iPhone is that it is a status symbol. Except for a few rich geeks, that does not change much by having wifi enabled.

        The market will be miniscule.

        Tell that to all the regular Chinese people who have iPhones. Not super rich geeks.

        They are sold very cheaply. Most likely they have "fallen off the truck" shortly after leaving the Chinese factory they are made in.

      • Re: (Score:3, Informative)

        Actually, Apple has been selling iPhones liberally in Singapore and Taiwan (?) with none of the restrictions it put on sales in the US and Europe precisely to create a black market supply for China.

        The people getting the iPhone in China are not rice paddy peasants, they are the urban rich, and there are shitloads of them. The mobile market in China is already absurdly big. In a report on notes from Analyst Shaw Wu of Kaufman Bros, AppleInsider wrote:

        "[China Unicom,] the smaller of the two Chinese carriers h

  • by Ritz_Just_Ritz (883997) on Saturday July 11, @07:27AM (#28659157)

    Let me translate:

    Illegally load VOIP apps and make calls over the net = cut into the revenue stream for one of the state owned telecom monopolies that doles out substantial sums to friends/relatives/mistresses of the same folks that regulate the telecom industry in the country.

    You don't really think those government functionaries who earn the legitimate equivalent of a secretary's salary in the west can afford the garages full of luxury cars, the multiple homes, and the expense of sending their children to overseas universities, eh?

    Welcome to China.

    • by beelsebob (529313) on Saturday July 11, @08:22AM (#28659351)

      No, much more suspect than that -- Illegally load VoIP apps and make calls over the net = circumvent china's state surveillance.

    • Re: (Score:3, Insightful)

      It is more control, being able to monitor anybody and especially the perception that anyone can be monitored. All regimes fear change, some more than others.
    • Your subject "It's all about the benjamins...er....yuan" would be nicer if it would say quai instead of yuan. You use the informal name for a dollar, and quai is the colloquial noun. I lived in Shanghai for a couple of months and I have never heard anyone say yuan, only quai.

      Just showing off my l33t Chinese skillz :-)

    • You also described quite precisely what is happening here in France as well.
  • The FCC is the American version of China's MIIT.

    If you think the MIIT has that much power over the Chinese people, how much more power does the FCC have over the entire world?

    It's funny, there are so many similarities between China and the U.S. Both are huge world powers that use their military and economic power to intimidate neighbors. Both are led by an oligarchy of unremovable political parties. And both have populaces that are brainwashed and fiercely patriotic.

    China is a good mirror of ourselves, so when this type of thing comes up, it's a good idea to take note and think about how we ourselves are being manipulated right here at home.

    • Re: (Score:2, Insightful)

      The FCC is the American version of China's MIIT.

      If you think the MIIT has that much power over the Chinese people, how much more power does the FCC have over the entire world?

      It's funny, there are so many similarities between China and the U.S. Both are huge world powers that use their military and economic power to intimidate neighbors. Both are led by an oligarchy of unremovable political parties. And both have populaces that are brainwashed and fiercely patriotic.

      China is a good mirror of ourselves, so when this type of thing comes up, it's a good idea to take note and think about how we ourselves are being manipulated right here at home.

      If only I had mod points...Your entirely correct. The population here in the US looks down on China, as if we have no similarities and they're inferior when in fact we're so much alike.

      • Go out in the street, stand in front of your local courthouse, and chant "The FCC is killing babies." Now, go try the same thing in China, except substitute "The MIIT is killing babies." See how far you get. Come back and let us know how it went.

        There is a substantial danger that the US will become China, but the actions of the FCC WRT licensing are not an example of such a warning sign. The actions of the FCC Re: "obscenity" are that warning sign.

        It's unfortunate that you were modded Troll, though... Every word of this sentence is true:

        It's funny, there are so many similarities between China and the U.S. Both are huge world powers that use their military and economic power to intimidate neighbors. Both are led by an oligarchy of unremovable political parties. And both have populaces that are brainwashed and fiercely patriotic.

        Every word of this sentence is highly defensible, and more to the point ontopic when we're talking about Chinese oppression.

    • You are a bit wrong. FCC can be scrutinized in the US, they have no absolute veto powers. On the other hand you can't question or sue government entities in China or take active stance against the ruling party.

      What is China doing here is taken straight from the Evil empire's best practices manual.
      • by Manip (656104) on Saturday July 11, @08:04AM (#28659293)

        Can you stand up to the gov' in any western country either?

        You go to a protest, get filmed, facial matched, and get a note in a record. You go for something that requires security clearance and you get denied without reason.

        NASA employees and other linked agencies only recently had to reveal all protests they had been in for review. If they failed to list something that might be grounds for termination (and they might be terminated for taking part).

        I wouldn't go to a protest. Luckily you can still show civil disobedience online, via letter, and in-person but they're already starting to crack down on the Internet.

        PS - This post isn't aimed at the US. The UK, Australia, and France immediately come to mind.

        • Re: (Score:2, Informative)

          Can you stand up to the gov' in any western country either?

          http://en.wikipedia.org/wiki/Dan_Bernstein [wikipedia.org]
          Bernstein brought the court case Bernstein v. United States. The ruling in the case declared software as protected speech under the First Amendment, and national restrictions on encryption software were overturned.
          http://www.waemploymentlawblog.com/blog/2008/09/transsexual-wins-sex-discrimination-lawsuit-against-federal-government.html [waemploymentlawblog.com]
          Transsexual Wins Sex Discrimination Lawsuit Against Federal Government
          http://en.wikipedia.org/wiki/Ruby_Ridge#Aftermath [wikipedia.org]
          The

        • Can you stand up to the gov' in any western country either?

          You go to a protest, get filmed, facial matched, and get a note in a record. You go for something that requires security clearance and you get denied without reason.

          Certainly. Western courts are pretty good at challenging government authority; and we have a real ballot box when we decide to use it.

          NASA employees and other linked agencies only recently had to reveal all protests they had been in for review. If they failed to list something that might be grounds for termination (and they might be terminated for taking part).

          Certainly they want to know - just like they want to know affairs, business deals, etc. - they want to minimize the chance of blackmail. If they already know, then it's a lot harder to blackmail an employee. The main concern is if you are hiding something, rather than the actual act, so yea, failing to list something can be grounds for termination if it appears to be deli

          • That's right: they want to know everything about you to "minimize the chance of blackmail". Don't you mean "to create the opportunity for blackmail" by their own management and HR staff? Or better yet, to screen you as a potential employee by any arbitrary political standard they wish, and disguise it as "not suited ot the role"? Do you really want to put all that personal information in their hands? I may be a poly-amorous gay rights activist in my spare time: do you think I should have to tell that to my

            • That's right: they want to know everything about you to "minimize the chance of blackmail". Don't you mean "to create the opportunity for blackmail" by their own management and HR staff? Or better yet, to screen you as a potential employee by any arbitrary political standard they wish, and disguise it as "not suited ot the role"? Do you really want to put all that personal information in their hands? I may be a poly-amorous gay rights activist in my spare time: do you think I should have to tell that to my supervisor for a job as a Catholic school janitor?

              The OP was referring to jobs requiring high security clearances, not private employers looking for janitors. Do I think it's unreasonable to dig deeply into one's private life for jobs where they can significantly impact national security if blackmailed? Yes I do think it's reasonable; your strawman not withstanding.

              • It's hardly a strawman. There's very little reason to think that the prejudices and unprinted "management policies" in a high security environment are not as dangerous, if not more so, than those in the less security critical world. If they were automatically superior, we wouldn't have the unfortunately well-founded craziness of discrimination suits against the Army for the lack of female, black, or other minority officers. And there would have been no reason to have the "don't ask, don't tell" policy towar

        • Well you can sue US or EU government entities and cite damages in millions of Euros or $$$, this is done all the time. Try to do that in China..
        • I wouldn't go to a protest.

          The more people that have this attitude, the more trouble we'll all be in.

          The people that protest are very rarely ones seeking security clearances. They do not give their secrets to people who do not agree with them unless they have to. So if they have a large enough pool of people who willingly conform, they will just pick from those.

          We are not yet in an Orwellian nightmare, but we may be if we are unwilling to express our dissent. They will always attempt to take away freedom. If a security clearance is

      • What is China doing here is taken straight from the Evil empire's best practices manual.

        Microsoft?

    • Re: (Score:2, Insightful)

      BadAnalogyGuy wrote:

      The FCC is the American version of China's MIIT.

      If you think the MIIT has that much power over the Chinese people, how much more power does the FCC have over the entire world?

      It's funny, there are so many similarities between China and the U.S. Both are huge world powers that use their military and economic power to intimidate neighbors. Both are led by an oligarchy of unremovable political parties. And both have populaces that are brainwashed and fiercely patriotic.

      China is a good mirror of ourselves, so when this type of thing comes up, it's a good idea to take note and think about how we ourselves are being manipulated right here at home.

      Your nickname is a bit ironic here.
      Try to not paint everyone with the same brush who displays a certain characteristic.
      Case in point: Tank Man [wikipedia.org] versus 1999 WTO Protests in Seattle [wikipedia.org].

      Neither was peaceful, but the fact I'm able to read about and discuss these past events instead of being state-censored is a pretty significant difference between the USA and China.
      I realize nothing I say will change your mind, so enjoy your stereotypical view of America. [tinypic.com]

      • Re: (Score:3, Informative)

        Your nickname is a bit ironic here.
        Oh, it's not ironic at all. BadAnalogy guy is a meta-troll who posts things that are blatantly factually incorrect, but gets modded up because he knows how to play on the biases that exist on Slashdot. For example, it is very popular with the "elite" Slashdot moderators to negatively compare the US to any other country in the world, no matter how despotic they are, and BadAnalogy guy did this to get moderation points here. Then somebody who actually has a clue about wh

    • by kamapuaa (555446) on Saturday July 11, @09:09AM (#28659677) Homepage

      I know anti-US comments are an automatic +5 Insightful on Slashdot, but this is absurd.

      The MIIT employs huge blocks of censors filtering content, has people arrested for using the Internet wrong, employs huge amounts of people to flood web 2.0 sites with nationalistic messages, places strict limits on the number of foreign movies that can be imported, censors the content of these movies, has banned Cannes-wining filmmaker Lou Ye from making movies for five years because his movie didn't pass government censors, blocks Youtube, Facebook, and some of the most popular internet sites on the web, cuts off all telecommunications in places where minorities are getting killed and might want to report on what's happening, and that's just a few modern examples off the top of my head.

      If the FCC did all of this in the US, people (hopefully) would be revolting in the streets.

      The FCC has its problems but the MIIT is a terrible monster backed up by a government with a willingness to go military on its own people, and really you're doing a disservice to the very real evilness of the MIIT by saying "Oh yeah America has a version of that too." Honestly you don't have an even casual acquaintance if you think they're fundamentally similar.

    • Totally brilliant! I don't have mod points, but I wish I did -- and just yesterday I was wasting them moding ACs as funny. That's about the most insightful comment I've ever read on slashdot.
    • "led by an oligarchy of unremovable political parties"

      Did you notice how the Republican administration and congress were removed in the last year? Maybe it took ten years of sheeping to get there, but the US eventually rejected the Republican party and moved forward, voting in numbers high enough to overcome rampant, orchestrated voter fraud by the Republicans. And when it because impossible to niggle, they (apart from Norm Coleman) stepped down without launching a military attack on civilians, and instead

  • While there is a lot of speculation that China's WAPI standard would contain a backdoor, there is very little factual evidence (except to paraphrase - "it is in China's character"). The problem is that China didn't release the entire specification to the standards organisations and that is likely a large part of why their protocol was rejected.

    While I have no idea if China's WAPI would contain a backdoor, I do wonder what the purpose of adding it would be. Since the internet in China is heavily monitored an

    • except to paraphrase - "it is in China's character"

      Security is based on a model of trust. No matter how advanced your algorithm is, it's all based on the trust you have in the other party to not divulge your secret information. It's also based on the trust you have in the vendor that sold you this secure algorithm to not have a backdoor in it.

      There's just not enough of a trusting relationship between China and the western governments.

      Whether there are a legion of Chinese hackers trying to digitally infiltrate other countries or not, I don't know. China coul

      • Before I get anally raped. Yes, I know about the humanitarian abuses. Yes, I know they're real. I was only giving an example of why "it's in China's nature" is a valid security concern.

    • There is just no other reason why the Chinese government would choose its own standard.

      The information ministry has already noted that mobile communications have to be "controlled". I can bet you anything that China already has in place a method to filter or control WAPI traffics.

  • So you have a society that:
    1. sells movies all over the place before they even hit the theaters,
    2. sells pirated software from major companies all over the place,
    3. hacks basically anything and everything just for fun,
    4. probably has a nationwide pringles-can wifi darknet,
    and you think you can "disable" wifi on a phone there? Yeah, good luck with that. When you're done with that, maybe you can hold back the ocean with a broom.

    • by kamapuaa (555446) on Saturday July 11, @08:49AM (#28659533) Homepage

      It's not a nation of super-hackers, it's that the government basically allows or even encourages piracy, even the most popular websites (baidu.com, youku.com) heavily depend on IP piracy for their popularity. Whereas the government is taking a stand against cell phones with wifi, and Chinese cell-phones generally do not have it, aside from black-market iPhones, really.

      Cell phones with a wi-fi free Chinese version don't get hacked to have wi-fi.

  • Pointless (Score:5, Interesting)

    by ebonum (830686) on Saturday July 11, @08:44AM (#28659503)

    I live in Shanghai. If you are on the subway during rush hour in the morning or evening, I challenge you to look around and not see someone with an iPhone. They are everywhere here. There are stores within 200 meters of my apartment that have iPhones for sale. This is a silly argument. The iPhone is readily available in China.

    Here is the more interesting point. The iPhones here are all smuggled in, mostly through Hong Kong. Since they have been smuggled in, you don't have to pay import taxes. If Apple gets permission to sell an "official" iPhone, no one will buy it because you will still be able to buy a gray market iPhone for 30% less. Why would anyone pay extra for an official iPhone?

    • So they don't get arrested for having a non approved ( crippled ) one perhaps?

      I don't live there so im guessing, but i would imagine that it would be a good selling point. "avoid prison, buy genuine apple"

  • If the government's fear is about VoIP, why don't they just put equipment in place to block the protocol? Then again, if you think about it, it is less about VoIP and probably more of paying less to the state owned telecoms company. Its amazing, just when you think you know how totalitarian China is, you read something that makes you realise it is just a bit more.

  • Speculates?!? Geez, its china, what would you expect?

  • All major phone systems have special back-door capabilities built-in. I used to design and build phone systems for small company. One day we got a visit by a nice man in black and following that, our systems had the standard back doors too. This is not secret at all, it is just not well known amongst the public.
    • Re: (Score:3, Informative)

      You have noticed that virtually any cell phone you get from any carrier is crippled somehow, have you not?

      • Nope. I hear you Americans have it tough though.

        • Re:Double hobble (Score:5, Insightful)

          by DECS (891519) on Saturday July 11, @12:22PM (#28661401) Homepage Journal

          How many Nokia and Sony Ericsson phones supported WiFi in Europe at the release of the iPhone?

          How many US phones supported WiFi at the release of the iPhone? Not very many. Verizon Wireless had been staunchly opposed to functional WiFi (and Bluetooth) on its phones, and Apple essentially forced AT&T into being cool with WiFi because in 1997 AT&T could barely support the EDGE traffic generated by iPhone users.

          Note that the China-export versions of Nokia's flagship N95 do not support WiFi, for the same reason.

          And what are these anti-features of the iPhone? You mean a battery that doesn't fall out when you drop the phone? A camera with less than 8MP in its tiny sensor so that you can't record noise? A software platform that keeps requiring you to buy apps that don't exist for Symbian or other struggling platforms? A browser that not only works, but looks so good it has the rest of the industry in an embarrassed panic to clone it? Or are you just dropping turd bombs because you're bitter that Apple released a good product that a lot of people like?

          Apple launches HTTP Live Streaming standard in iPhone 3.0 [roughlydrafted.com]

    • I'm 100% with you, but you've got to remember that Apple is a corporation that is only out to make money. They don't even care about not being evil like Google. They probably determined that neutering their iphone for China would give them the best profit, just like all of their other product "oversight" has been working in the West.

      Sure, as techies we think it is annoying, but mommy is happy to buy a "porn-free" phone for her little Johnny and she is also happy that her iMac "just works."

    • What's next, a special edition shipped with elephant poop? Knowing Apple and knowing consumers, that will just make it sell better... *sigh*

      Did you mean "smell better"?

    • Apple's been fighting to have WiFi enabled because that makes the iPhone experience much better (and hence more saleable). I expect that WiFi will only be turned off in the firmware and the hardware will be the same as is used in the rest of the world: if so, this latent capability could be enabled in the future.
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