With everyone down with a bad case of iPhone fever (long line-ups on July 11 and proclamations it’s going to the “New Personal Computer”), one important consideration many people seem to be overlooking is the wireless carriers own the playground that everyone (hardware makers, consumers) want to play in.
It’s the carriers who have been investing aggressively on 3G so they can offer a faster, service/application-friendly network to consumers. With those investments pretty much done, it’s now time for some serious ROI (aka return on investment). This means while the carriers are going to offer iPhone, Blackberrys and cool devices, using them will not be a cheap proposition for consumers.
To pay for the investments made (and being made), carriers will pass on the costs to consumers. This will be a relatively easy exercise given consumers are so excited about the wireless Web, GPS, e-mail, mobile commerce, etc. This will make it easy for carriers to sell high-margin data packages so consumers can get the most out of their smartphones.
So, you’ll pay for your voice service, e-mail, text messaging, ringtones and mobile Web access. The carriers will come up with other fees and services to purchase so at the end of the day, the average bill could easily be $100/month. In Canada, Rogers recognizes this is the new reality, which is why their iPhones plans were/are so expensive.
You see, 3G is the golden goose for wireless carriers. It’s technology that turns their networks from boring voice systems to multi-functional data systems. They’re going from being a diner offering three specials/day to a restaurant with a huge buffet. This buffet is enticing and offers something for pretty much everyone but you’ll have to pay for it.
This is important to remember as we rumble down the smartphone/3G path. There’s a lot of excitement and great new devices being launched but don’t forget one crucial thing: the carriers control the house, and if consumers want to play, they’ll definitely need to pay.
Update: Apple said it sold one million 3G iPhones over the weekend. I wonder how many of those were sold by Rogers in Canada? I think the numbers are, at best, modest despite Rogers claim demand was strong. Demand may have been strong but supply appears to have been limited. For a different perspective on the iPhone, check out this Newsweek article, The iPhone Haters.
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Warning: Carriers See 3G as Golden Goose
With everyone down with a bad case of iPhone fever (long line-ups on July 11 and proclamations it’s going to the “New Personal Computer”), one important consideration many people seem to be overlooking is the wireless carriers own the playground that everyone (hardware makers, consumers) want to play in.
It’s the carriers who have been investing aggressively on 3G so they can offer a faster, service/application-friendly network to consumers. With those investments pretty much done, it’s now time for some serious ROI (aka return on investment). This means while the carriers are going to offer iPhone, Blackberrys and cool devices, using them will not be a cheap proposition for consumers.
To pay for the investments made (and being made), carriers will pass on the costs to consumers. This will be a relatively easy exercise given consumers are so excited about the wireless Web, GPS, e-mail, mobile commerce, etc. This will make it easy for carriers to sell high-margin data packages so consumers can get the most out of their smartphones.
So, you’ll pay for your voice service, e-mail, text messaging, ringtones and mobile Web access. The carriers will come up with other fees and services to purchase so at the end of the day, the average bill could easily be $100/month. In Canada, Rogers recognizes this is the new reality, which is why their iPhones plans were/are so expensive.
You see, 3G is the golden goose for wireless carriers. It’s technology that turns their networks from boring voice systems to multi-functional data systems. They’re going from being a diner offering three specials/day to a restaurant with a huge buffet. This buffet is enticing and offers something for pretty much everyone but you’ll have to pay for it.
This is important to remember as we rumble down the smartphone/3G path. There’s a lot of excitement and great new devices being launched but don’t forget one crucial thing: the carriers control the house, and if consumers want to play, they’ll definitely need to pay.
Update: Apple said it sold one million 3G iPhones over the weekend. I wonder how many of those were sold by Rogers in Canada? I think the numbers are, at best, modest despite Rogers claim demand was strong. Demand may have been strong but supply appears to have been limited. For a different perspective on the iPhone, check out this Newsweek article, The iPhone Haters.
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