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It seems that the competition in the mobile arena is becoming even more fierce. As well as the new 3G network there are lots of new phones coming along offering web browsers on the older networks. And the Open Source Android application may become a major player. The combination of Linux, Google and an Open Source SDK is a powerful combination.
Apple has also opted for an Open Source Operating System. They are also familiar with hardware manufacturing processes. This means that Apple can deliver an integrated product that "just works".
However Google has the potential to give Apple some serious competition. Since they use an open source development environment for the applications, many of these may be developed by third parties at. There are also cost savings from using a generic hardware platform. This could mean that the Android platform could have an overall cost advantage that makes it a more attractively priced item.
There are some good signs that there will be lots of genuine competition amongst mobile operating systems over the next few years. With a mixture of open source and proprietary offerings, it may prove to be a very good testbed for the comparative benefits of the open source and proprietary paradigms.