To use the iPhone OTA application, the person who is trying to download the application must install the appropriate certificate.
Enterprise applications are limited to 1000 OTA installations that Apple can track from their end.
For non-enterprise developer accounts, you have a limit of 100 devices that must first obtain the device UDID before the provisioning portal before they can install the appropriate certificate to run the application.
So, if you can distribute ipa for free (via HTTP or FTP or whatevs), they will still need the correct valid certificate, and this will be controlled.
Of course, there are ways around this, but overall, how Apple protects OTA installations.
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