From what we could tell from our brief interview, the YC gang didn't seem very enthusiastic about installed cell phone apps. They cited the amount of capital required to strike deals with the carriers as one of the negatives for small startups. I'm sure they know from first hand experience if this is the case or not so I wont debate that. My opinion though is that users will install apps anyway if they want them, regardless of what their contract says.
a business model that depends on people explicity breaking their wireless phone contracts, can only work if there is some negatiating edge, which force the telecoms to negotatiate with you. I.E. if your product somehow allows the telecoms to make money, and once the telecoms discover your product makes money, there has to be some reason its hard for the telecoms to indepandtly reproduce your product.
