Carriers Take Consumers on a Bumpy Wi-Fi Ride

[Darius Wey]

<div class='os_post_top_link'><a href='http://www.wired.com/news/wireless/0,1382,67638,00.html' target='_blank'>http://www.wired.com/news/wireless/...2,67638,00.html</a><br /><br /></div><i>"Cingular Wireless, which has been selling Siemens' Wi-Fi-enabled PDA since January, says it sees strong demand for data services using the wireless broadband capability. However, the carrier does not currently have a plan for rolling out Wi-Fi voice services. Sprint spokesman Bill Elliott said the company is "heavily in the process of evaluating" the feasibility of phones that work on both Wi-Fi and its mobile voice network. However, the company is not engaged today in any trials of dual-mode Wi-Fi phones. Verizon Wireless, meanwhile, has shied away from Wi-Fi phones, opting to focus instead on a proprietary service, BroadbandAccess, that lets users maintain a mobile, high-speed internet connection across an urban area. "The mobility factor brings a lot more value to the end user than what Wi-Fi has to offer right now," said Ken Muche, a spokesman for Verizon. "You're not going to be tied down to a coffee shop or the lobby of a hotel." Lack of enthusiasm from carriers hasn't stopped proponents of Wi-Fi phones from issuing optimistic projections."</i><br /><br />Wired News has a great article titled <a href="http://www.wired.com/news/wireless/0,1382,67638,00.html">"Carriers Dally on Wi-Fi Phones"</a>, and in it, some interesting points are raised about why American carriers are so reluctant on incorporating Wi-Fi in their phones. If you've been keeping up with the news, you would have noticed rumours of Verizon Wireless omitting Wi-Fi from the Samsung i730. It's a stupid move from a consumer's point of view, but a smart one from a business point of view. With free calls over VoIP becoming increasingly popular, Wi-Fi presents as a serious threat to potential revenue gained from standard wireless airtime. At the end of the day, it's the consumers that get slapped with half-decent devices. :roll:

[nz0eBoy]

I think the carriers are being a little blinkered in their thinking here. If they sat down for a half hour and worked from the premise that WiFi was standard and how could they make some money from it I am sure they could come up with something.

For example:
* Increase the monthly base fee for users which have a WIFI enabled phone.
* Use a flat rate call plan so it makes no difference whether they call using VoIP or standard cellular call.

Some of this may require some technical development in terms of identifying WiFi enabled phones over the air, but it may be possible.

Furthermore, the types of users that would consider using VoIP are likely to be the types of people with the knowledge of where to find 'hacks' to get around this. WiFi is not prevalent enough, I believe, for VoIP to offer the customer experience that mobile can

My NZD$0.02.

[PPCRules]

At the end of the day, it's the consumers that get slapped with half-decent devices. :roll:

At the end of the day, it's the consumers that can make or break any company, and COULD dictate the devices sold. Unfortunately, in cell phones, probably more than in any other product segment today, the consumer seems to scrap logical thought and make their purchases based on who has the cutest ringtones or the slickest sounding calling plan.