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Apple (Nasdaq: AAPL) has finally approved the Google (Nasdaq: GOOG) Voice app for the iPhone, which lets users make calls and send text messages using a Google Voice phone number. Google's more than year-long journey to reach this point may have been helped by a gentle nudge from the Federal Communications Commission.
Google submitted the app to the App 
Store in July 2009. After some dithering on Apple's part, the FCC got involved, asking why it had not been approved. Apple's response was that Google Voice duplicated services that were already available on the iPhone. However, Apple's resistance may have been more tied to the growing rivalry between the companies and the specific concern that Google Voice could harm its partner, AT&T (NYSE: T).
Why Now?
Now the app is approved, with little acknowledgement of the storm the issue has caused. Neither Apple nor Google replied to MacNewsWorld's requests for comment by press time.
That leaves the door open for speculation.
"There are four key reasons why Google Voice app finally showed up on iPhone, suggested Azita Arvani of the Arvani Group.
"One, Google Voice was showing up on Android and BlackBerry phones with an obvious hole for iPhones," she told MacNewsWorld. "Two, Skype and other VoIP apps were showing up on iPhone with an obvious hole for Google Voice. Three, the FCC was questioning Apple's app approval process, and four, AT&T exclusivity is speculated to be coming to an end, so Apple can be more free to decide on these kinds of apps."
Consumers Win
Whatever the reasons, the app's approval is a win for consumers, said James Brehm, senior consultant with Frost & Sullivan.
Primary benefits of Google Voice include cheap rates for international calls, free text messaging to U.S. numbers, voicemail transcription and the display of the Google Voice number as caller ID. Other features include push notifications that alert users when they receive a new voicemail or text message. Also, most calls are placed via Direct Access Numbers, making them connect just as quickly as regular phone calls, according to Google.
"It offers a great integration of the messaging platform at far lower costs than most commercial options," Brehm told MacNewsWorld.
The big loser in this decision is the carrier model, he noted, which will likely see a defection among its iPhone users for Google Voice.
Not that this will be a fatal blow to carriers, added Brehm. "Not many count messaging as a prime revenue source."
Apple Wins Too?
Apple could be considered a loser in this episode, especially if its main reason for approving Google Voice was FCC pressure. However, it's also possible this will work in Apple's favor.
"Apple and Google are frenemies," noted Arvani. "In this super-dynamic and hypercompetitive world of mobile, friends and foes switch roles quickly. And, companies have to be prepared and agile to take on the different roles, when the circumstances call for it."
Simply put, iPhone owners will use their devices more with Google Voice, she said. "Having Google Voice on your phone definitely increases its use. The app is well designed and nicely fits into the iPhone's user experience."
It actually may not be such a loss for carriers either, continued Arvani, as it encourages people to use their phone to make more voice calls under different calling ID numbers, "and, it takes up mobile voice minutes."
