Bell’s Brilliant Strategy: Charge for GPS!

Money
Armed with a gazillion dollars in debt (Actually, $30-billion give or take a few dollars) if a private equity buy-out is consummated, Bell Canada’s new corporate mantra is: more cash flow, more cash flow.

In practical terms, what it means is Bell needs to squeeze as many dollars as it possibly can from consumers without squeezing too hard that they flee to their local cablecos (e.g. Rogers, Videotron, Cogeco).

So far, the Mo’ Cash Flo’ (MCF) strategy has seen Bell start to charge wireless users for incoming text-messages if they happen not to subscribe a monthly (aka recurring revenue) text-message bundle.

Now, there’s growing speculation that Bell wants to change the rules for wireless GPS.

According to Wellington Financial Blog, rather than stand on the sidelines while GPS becomes the new mobile “killer app”, Bell is apparently thinking of doing two things:

1. It could lengthen the time it takes for wireless user to access GSP services such as Google Maps and Blackberry Maps to 2 to 10 minutes from 15 to 20 seconds. And it could resolve GPS data to 1 to 2.5 kilometers rather than 10 to 25 meters.

2. For consumers looking for superior GPS service, Bell – surprise, surprise – would be more than happy to sell you its own service called GPS Nav for $10/month. Sweet.

Knowing the state of competition within Canada, Rogers and Telus will likely use Bell’s move as an excuse to also offer advance GPS service.

Putting aside Bell’s financial needs, it’s a shame that it’s trying to piggyback on the growth of GPS. We’re on the cusp of some really amazing innovation and services based on the ability to use location for all kinds of different things. To get in the way of free GPS to make a buck is sad but, frankly, not that surprising.

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One Comment

  1. Jeremy R
    Posted September 25, 2008 at 1:36 pm | Permalink

    Come on! When will this stop!

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