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Apple iPhone 3GS

"Contrary to published reports, Apple has not rejected the Google Voice application, and continues to study it," said Apple in a five-page letter to the Federal Communications Commission. "The Google Voice application replaces Apple's Visual Voicemail by routing calls through a separate Google Voice telephone number that stores any voicemail, preventing voicemail from stored on the phone, i.e., disabling Apple's Visual Voicemail."

Last month, the FCC launched a federal inquiry to look into the state of competition in the U.S. telecom industry. Depending on how the regulatory body reacts, the issue could have far-reaching implications for the wireless industry.

Cupertino, Calif.-based Apple denied banning Google Voice because of its Internet calling element and said it had approved similar applications like Skype, owned by online auction site eBay, for use over Wi-Fi but not on AT&T's 3G network.

Apple said there is a provision in its agreement with AT&T, the exclusive U.S. carrier of the iPhone, that obligates the handset maker to reject Internet calling functionality originating or terminating from AT&T's cellular network.

It said it acted alone and "did not consult with AT&T about whether or not to approve the Google Voice application."

AT&T has restricted bandwidth-intense applications such as SlingPlayer Mobile for iPhone, a TV streaming service, saying it slowed down Internet access for other customers.

AT&T filed its own 12-page response, saying it had "no role in any decision by Apple to not accept the Google Voice application for inclusion in the Apple App Store."

Google's response was kept confidential.

The FCC is also investigating how exclusive handset agreements between carriers and handset makers -- such as AT&T to the Apple iPhone, Sprint to the Palm Pre and Verizon to the BlackBerry Storm -- affect competition in the marketplace.

While most deals last for six months or less, lawmakers have raised questions about AT&T's right to sell Apple's iPhone -- two years after the first handset's release.