Why Wireless Carriers Need A Clue -- Soon

[Jerry Raia]

<div class='os_post_top_link'><a href='http://www.mobilepipeline.com/164901436' target='_blank'>http://www.mobilepipeline.com/164901436</a><br /><br /></div><i>"An optimist might say that the jury is still out about cellular data. But a new survey has me almost convinced that clueless cellular operators could blow their multi-billion dollar investments in 3G. I've ranted frequently about how cellular operators are making a huge strategic error by overpricing 3G service. But overpricing fast cellular data is a symptom, I believe, of how the cellular operators simply don't understand how to offer those services."</i><br /><br />This article brings up some very good points. I second them and let me add another thought here. While WiFi is not readily available on phones yet it is definitely popping up almost everywhere. I find myself quite often using my iPAQ with WiFi to check email and even post here instead of waiting for my slow GPRS connection on my phone to do it. I pay 19/mo for WiFi. Why would I pay 80/mo for a slower connection? True, WiFi isn't available everywhere but that is changing. What do you think?

[Mike Temporale]

I think if the carriers think they can block and slow the acceptance of WiFi on Smartphones, then they really need to look at the changing market place. Carriers can offer WiFi enabled phones and still make money. The more they try and hold it back, the more frustrated and upset their customers will end up getting.

But, hey. What do I know. I'm just a customer. :?

[PPCMD]

Very true and WiFi isn't everywhere, granted major markets but still not everywhere. If they would focus on a key business model of selling the phone, service and plans that meet our needs their business would grow. Crippling our devices and removing the DUN features (Verizon &amp; Sprint) is stupid if you expect the customer to buy a device capable of 3G.

[seaflipper]

"An optimist might say that the jury is still out about cellular data. But a new survey has me almost convinced that clueless cellular operators could blow their multi-billion dollar investments in 3G. I've ranted frequently about how cellular operators are making a huge strategic error by overpricing 3G service. But overpricing fast cellular data is a symptom, I believe, of how the cellular operators simply don't understand how to offer those services."

This article brings up some very good points. I second them and let me add another thought here. While WiFi is not readily available on phones yet it is definitely popping up almost everywhere. I find myself quite often using my iPAQ with WiFi to check email and even post here instead of waiting for my slow GPRS connection on my phone to do it. I pay 19/mo for WiFi. Why would I pay 80/mo for a slower connection? True it is available almost anywhere but that is changing. What do you think?

One part of me thinks the wireless carriers don't get it, the other part of me wonders what the p&amp;l's look like for the data side of some of the carriers.

AT&amp;T (Cingular Blue) has a TON of corporate customers who have no trouble paying $80 per month for unlimited 3G (where available) and EDGE is not that bad in a pinch (much faster when using a laptop versus a PDA for example, the pass through connection is pretty dang fast and the laptop is so much faster at rendering pages than a PDA). Of coourse with Cingular succesfully testing their 7MB 3g services (that have been delayed now) the long term potential for 3G service is quite comprable to Wi-fi and the coverage area is potentially much bigger and better in my opinion.

I think the carriers are in this "wait and see" mode as the technology changes rapidy. I think the vast majority of data useage is still work/business related and from the business end of things, selling $80 plans to 1,000 businesses versus selling say 4,000 $19.99 unlimited plans to consumers is much more lucrative when you consider the tech support required is way less for 1000 customers than 4000. That's a totally made up example, but clearly the type of business logic that Cingular/T-Mobile etc will use.

And of course the whole VOIP wifi thing is probably driving the carriers nuts as they try to figure out how it will impact them and if they can make any money on it. Considering the large number of T-Mobile hotspots out there I would not be surprised to see some type of T-Mo VOIP/Data plan come out, have they announced that yet?