Apple's iPhone is being released today amid tremendous anticipation and publicity. But despite the great innovation it represents in mobile technology, the iPhone is also a step backward for some of the worst practices of the mobile industry.

The phone will only work on AT&T's network, unlike other GSM phones, making it impossible for a customer to lawfully purchase it and then connect it to another GSM network in the U.S. (T-Mobile) or any GSM system overseas. This is the same AT&T that recently announced its intention to built technology to spy on its customers on behalf of the RIAA and MPAA.

AT&T will charge an early termination fee if you cancel service, even though they don't subsidize the phone at all, despite the widespread claim in the mobile industry that the purpose of the ETFs is to recoup their cost of providing a free or discounted phone with activation.

And worst of all, the iPhone doesn't allow third party applications at all - even worse than Verizon's practice, the previous worst, of requiring all application writers to go through an arduous approval process and pay high costs to Verizon. The iPhone does allow AJAX Web apps to run on the phone's Safari browser, which ameliorates much of the problem, but that has many limits, most of which aren't yet known. Will the apps be able to access the camera or microphone? (Probably not.) Will they be able to take advantage of the innovative input gestures like zooming by moving fingers closer or farther? Access the address book? Save files locally? Apple could have built an API for developers, but they've never been particularly interested in fostering a development community around their technology.

Many defenders of wireless industry practices like early termination fees and locking argue that if consumers really cared about these things, they wouldn't purchase phones and plans with them. Well, I'm not purchasing an iPhone. And I hope you won't either.

Working Assets Wireless has launched a campaign to pressure Steve Jobs to unlock the iPhone for any network and has done a terrific job of building awareness of Apple's and AT&T's anti-innovation, anti-consumer practices. I encourage you to sign their petition, and most of all, don't buy an iPhone.

Update: Working Assets Blog linked to us about this issue.