WMExperts.com has a really great article about the fact that US mobile operators sometimes "lock down" GPS functionality on their phones to require customers to use a carrier-branded navigation solution instead of free applications. We've certainly run into this issue - for example, running into problems using GPS with Live Search an AT&T Tilt. Here's an excerpt from WMExperts' discussion:

What do we mean by 'locked down'? We mean that GPS is there, fully functional, yet hidden from the OS and third party applications by the carrier. With several devices, users have to resort to registry hacks or other, 3rd party programs to 'enable' GPS for Windows Mobile and 3rd party apps to access it.

Why is GPS locked down? Well, so that only one program on your device can access it. It's known by several names: VZ Navigator, AT&T Navigation, Sprint Navigation.

Locking down GPS and forcing users into a subscription that, for many of them, is unnecessary is just plain wrong. It's turning something into a for-pay service solely by blocking functionality for users who aren't savvy enough to know what's happening.

What do you think?

I think it is extortion. But that is just my opinion and I could be wrong.

I guess it's no different to putting a speed limiter on a car. At the end of the day you choose to either buy the device or not so I doubt there would be any comeback. It sucks big time though, especially as most of the carrier solutions I've seen aren't a patch on the third party ones.