MobileBizBuzz

February 24, 2010

Wireless Carriers as Dumb Pipes?

Filed under: Industry News — Tags: , Mike @ 9:52 am

pipesFor those of you not in the wireless industry on a daily basis, I am sure you are wondering what the title of this post is all about.  What in the world is a dumb pipe?  Let me attempt to explain.  Over the course of many years, networking in general has used the term “pipe” as a metaphor for the network. The idea behind this is that networks move bits, much as pipes move water. If you have a broadband connection to your house, you have a fairly big pipe at least for your downloads.  At my house I get about 9.5 megabits per second on downloads.  Compare that with several years ago when I had a 14.4K modem that actually supported something more like 10 kilobits per second download speeds. That was definitely a little pipe…maybe even a straw by today’s standards.

OK, so now you get the metaphor of a pipe.  What is a dumb pipe.  Well, until the advent of the iPhone, wireless carriers offered a number of services to their users beyond just the network.  You bought much more from the carrier than just minutes, or bandwidth on a data connection. For instance, if you wanted an application for your phone, you bought it from the carrier. Need a ringtone? Buy it from the carrier. What about a wallpaper for your phone? You guessed it…the carrier. I could go on, but you’d get tired of reading, and I’d get tired of writing. I think you get the idea.  The carrier not only provided the network, but a variety of products and services around that. In other words, they had a smart pipe.  A network that not only provided the basics of moving calls and data, but also had a lot of extras you could purchase to enhance that network experience.

Enter the iPhone. Now you buy your apps, games, movies, music, and just about everything else, not from AT&T, but from Apple. AT&T, along with all the other carriers,  is effectively becoming a dumb pipe.  Dumb seems like a derogatory term, but it isn’t necessarily. It just means they provide the basic network service of handling voice and data, but not much in the way of frills beyond that.  Ironically, this is the way all of the carriers (wireless and landline) started out.  When I was growing up there was a rotary dial phone on the wall in our kitchen.  I bet many of you were the same. That phone did one thing, and one thing only. It allowed us to make and receive phone calls from virtually anyplace in the world.  No applications, no configurable ringtones, and no wallpaper, except for the funky chickens on the kitchen wallpaper. And no dropped calls by the way.

Now, after trying to make the move to smart pipes, the carriers seem to be willing to fill the roll of a dumb pipe.  What got me started on this post was an article in Fierce Wireless talking about Verizon offering Skype on their smartphones.  The article’s contention was that carriers would not become dumb pipes. I have to say that I disagree.  Skype is already available on the iPhone.  As an application, Skype really accentuates the concept of a dumb pipe, because using it, you essentially don’t even use the carrier for voice. Your voice gets turned into IP traffic, and then carried over the network as IP traffic, and turned back into audio on the other end. For you sticklers for detail who are more technically in tune with wireless networks, yes I know the Skype offering from Verizon actually uses the voice switched circuits, but my point is still valid. For those of you who have no idea what I just wrote about voice circuits…carry on.

My point is this: carriers seem to be embracing the role of a dumb pipe, in a way they have not in many years. They seem to be content to do what they do well…build and manage a network.  This opens the door for many others who can come in an focus on a specific application, or a specific service, or your favorite ringtone.  My personal belief is the carriers will do better allowing others to focus on these ancillary products and services, while they continue to focus on the network.  I think this will provide a much richer experience for all of us. After all, auto makers don’t worry about making gasoline, tires,  aftermarket stereos, XM radio service, or lots of other things that make driving our cars possible and entertaining.  They focus on making cars. That in and off itself presents enough challenges. I think the same model will continue to enhance our mobile experience in the wireless world.

February 15, 2010

Here We Go Again

lots-of-phonesTwenty-four wireless telecommunications companies united to announce the Wholesale Applications Community at the Mobile World Congress in Barcelona.  Gizmodo has a good overview of the announcement on one of its blogs.  The concept sounds great on the surface, but I am less than enthusiastic they will have any meaningful success.

They are attempting to solve a worthy problem. Every mobile application developer faces a huge hill to climb every time they want to develop a new application.  If you want to write a piece of software that will run on most of the smartphones out there so you have a large market, here is what you have to do:

  • Design the application
  • If you want to develop for the iPhone:
    1. Download the Software Developer’s Kit
    2. Write the application
    3. Test the application
    4. Sign up as a developer on the App Store
    5. Pay your fee
    6. Agree to all the contractual obligations
    7. Submit you application for approval
    8. Wait, wait, and then wait some more
    9. Celebrate when your application is finally approved
    10. Hopefully begin selling your software
  • If you want to develop for the BlackBerry, repeat steps 1-10 above
  • If you want to develop for Android, repeat steps 1-10 above
  • I could go on, but I think you get the idea

Conceptually what the Wholesale Applications Community wants to do is great. They want to make an environment where a developer can write a piece of software once, and then be able to port (technical term for copy) the application to multiple other types of phones on multiple other carriers (Verizon, Sprint, etc.).  They also want the developer to not have to deal with multiple app stores from multiple device makers.  Sounds great, right?

Problem is, it won’t work. If you know me personally, you would know that I am a very optimistic person. So why do I think this is a lost cause. Because it has been tried before in many situations other than mobile applications, and it has always failed.  There are many reasons for this, but here are my top three for this specific instance:

  1. Even though you provide a common software development environment, by definition it must support devices with a least common denominator approach. As soon as a device maker offers, and a developer takes advantage of, a unique feature on a specific device, the application is no longer portable to other devices.
  2. Apple, BlackBerry, and Google already have pretty well established App Stores. Introducing a new app store alternative will be pretty difficult, even if it helps the developer community. Let’s face it, there are technology bigots who are in love with devices from a specific maker, and they are very unlikely to be open to trying other environments.
  3. Look at who is missing from the list of supporters for this effort. No Apple. No BlackBerry (RIM for you industry folks). No Google. No Microsoft. Nuff said.

Once you have been around information technology for a while, you see trends repeat themselves over an over. The whole concept of a common development environment has been attempted many times. It really started common programming languages like FORTRAN, and with Operating Systems like Unix.  The idea of a common app store married with a common development environment is just a different spin on the same theme.  I get why they are doing it. I just don’t think it will succeed.

Remember, this is just my opinion, and your mileage may vary.

February 10, 2010

Mobile Market Changes

Filed under: Mobile App Dev,Mobile Devices — Tags: , Chris @ 9:23 am

Well, it’s been a while since I posted, but that’s not because nothing has been going on in the mobile world (was that a double or triple negative?). There continue to be changes in device popularity and availability which is having an impact on the smartphone market. For instance, back in September of last year Android was just beginning to gain traction with a couple of Android phones and about 8,000 applications in the Android Market.  The only mobile device Apple made was the iPhone.  And most of us would not have had a clue as to what AT&T and Verizon’s 3G coverage maps looked like.

Today there are about 25,000 apps in the Android Market, and there are several Android phones available, including one from Google itself. Apple just recently announced the iPad (insert your favorite product name joke here), which is truly a mobile device. It’s relatively small and light, and supports not just WiFi, but also cellular data connections. And we are all probably sick of seeing the coverage map wars between AT&T and Verizon, though some of the commercials have been pretty creative.

smartphone_1209As the industry continues to evolve, it would be a good idea to remember that the more things stay the same, the more they change. Actually I think the phrase goes the other way around, but stating it this way suits my purposes for this post. ComScore just recently released a report showing the US smartphone marketshare by operating system. Ars Technica was kind enough to put together the chart you see to the left.

There are several things about this chart that are interesting. Two items come to mind with regards to the iPhone. First of all, we all have come to accept that Apple is a huge player in the mobile market. The thing I think that bears remembering is that three years ago the iPhone had just been announced, but had not yet appeared in the market. That wouldn’t even happen till the end of June in 2007. Now look at it. Three years later and it has 25% market share for smartphones in the US.

The second item about the iPhone that is interesting is that even for all of it’s success, it is still dwarfed by BlackBerry (RIM for those of you in the industry). BlackBerry is still king, and though it has lost some ground to other players, Apple still has a long way to go to catch them.  For people developing software, this is an important point. Apple has gotten a ton of traction in the application world, but developing a great app for BlackBerry opens up a huge market to developers.

The third item I wanted to point out in this chart was Android. Listed in the chart as Google (because they are the force behind Android), it has made amazing strides since September. For the better part of a calendar year, there was only one Android phone available. It was the G1. It was available only on T-Mobile, and let’s face it…the phone wasn’t very good. Now several big players such as HTC and Motorola have multiple Android phones, and Google even has one. As a result of this push, Android market share has doubled in just 4 months. I’ll go out on a limb and say you should look for this to continue.

I hadn’t posted in several months before today. And look at what has happened in the market in that time. It’s only going to continue to accelerate. So strap on your helmet, and fasten your seat belt. It’s going to continue to be a wild ride.

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