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GetJar , which distributes free mobile applications to consumers on the Internet and over the phone, said it is branching out its business by building application storefronts for wireless carriers. A few months ago, that would have been unheard of because carriers typically want to own the relationship with their subscribers. But with the success of Apple's ( NSDQ: AAPL ) App store, which Steve Jobs said made $30 million in its first four weeks, copycats are really starting to take off. For example, earlier this month, I reported that T-Mobile will create an open storefront this Fall that would allow developers to sell their applications freely to their subscribers, and yesterday Google ( NSDQ: GOOG ) announced the Android Market, a store for Android phones when they become available later this year. Of course, there's other app stores too, including Handango, which sells apps to smartphone users. When I met up with Bill Scott, GetJar Network's VP of sales and business development in Seattle this week, he said GetJar is seeing the same trend and is starting to work with carriers to distribute free apps on their decks. The numbers are convincing. So far, GetJar claims that consumers have downloaded 300 million applications in total from its site, with a monthly average of about 13 million downloads worldwide and more than 500,000 in the U.S. It distributes everything from Google Maps and Yahoo's ( NSDQ: YHOO ) Go to nifty, but also less useful items, such as Disco Light, which makes your phone flash, and Battery Drainer, which makes your phone flash and beep until it's dead. Adult entertainment is also fair game. The company initially had no intentions of being an app store, but Founder Ilja Laurs of Lithuania stumbled into it. As a game developer, he always had a hard time getting his games tested. One day he posted it on a Web site, asking people to download it for free and report any bugs (That also explains the company's name...Jar is the suffix...

Verizon Wireless's ( NYSE: VZ ) $28.1 billion acquisition of Alltel will create the largest U.S. wireless carrier, but at the same time, it will eliminate one of the most innovative carriers in the country, which begs the question: Is Verizon buying Alltel for its towers and subscribers, or also for its forward-looking approach to the market? As a regional carrier, Alltel may only serve 13 million subscribers in limited territories, but that gives the company a level of comfort and flexibility to quickly roll-out new services without the constraints larger carriers face. It doesn't worry that millions of users will start using a new service overnight that crash the network, and it doesn't have to train as many customer-service and retail representatives every time it launches a new phone or application. So, the concern is that once apart of Verizon this attitude will fade. Some of it probably will, but if the merger gains regulatory approval, will companies lose an important petri dish, or gain a larger one? As an example, Alltel was Seattle-based Ontela first customer. CEO Dan Shapiro said he heard about the potential merger yesterday while in a board meeting. Immediately, the topic of conversation focused on how it would affect the industry. "There's two different thoughts," he said. "There's the conventional wisdom that the big carrier eats smaller carriers, and all good things come to the end," he said. But they came up with a second scenario: "They are buying a hard asset with towers and subscribers—that's 80 percent of the truth. Another piece, is that Alltel has been a pioneer that experiments with the way to bring value to its subscribers, outside of text and voice services, and that's valuable. They have a full-time business development person in Seattle to make sure that everything gets back to Little Rock. I strongly suspect that Verizon sees that culture of innovation and that skill-set as a way to maximize...