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.

September 15, 2009

It’s Getting Crowded in Here

Filed under: Mobile App Dev,Mobile Apps,Mobile Devices — Tags: Mike @ 9:00 am

imagesThe last couple of weeks have been interesting in the world of smart phones.  Motorola/T-Mobile, HTC/Sprint, and LG have all announced the upcoming release of new Android smart phones.  If you don’t know much about Android, that’s not surprising. It is a smart phone operating system announced with a lot of fanfare quite a while back. It is backed by Google, and supported by several large wireless industry players.  The idea is to provide a platform that will run on a lot of different phones, from different manufacturers, and different carriers, making it easier for developers to write software that will support a wide variety of users.

The problem to date has been that you could get any Android phone you wanted as long as it was the G1 from T-Mobile. Yep that’s right.  For all the hoopla, there has been only one Android phone on the market since Android was introduced.  Even with that huge limitation, the Android Market (their version of an App Store) now has about 10,000 applications on it.  The availability of more phones should provide additional momentum to encourage more developers to jump on the Android bandwagon.

The market trends with mobile applications are truly staggering.  Consider for a moment that just a little over one year ago there was not a single app store out there.  Sure, there were some smart phone catalogs, but they were mainly used by techies, and there was no way an average person could easily get access to software for their phone.  Enter Apple, and the App Store.  Since its introduction last summer there has been a proliferation of applications for smart devices. In addition to the 70,000+ for iPhones, and the 10,000+ for Android, there are a projected 20,000+ for Windows Mobile, a few thousand on BlackBerry App World, and a rapidly growing number of applications for the new Palm Pre and Pixi.

What does this all mean for us users?  It means that we are being presented with a rapidly growing number of software choices for our phones.  And more choices means more functionality.  More functionality means more usefulness.  More usefulness means more use.  The way we use our smart phones is growing rapidly, as is the amount of time we spend on them.  They are becoming our main vehicle of communications and “computing” at a rate that makes the evolution of PC and software look like it occured over eons.

We are rapidly being presented with many choices of software which make our phones more useful devices.  And that’s a good thing not only for consumers, but also for businesses.

August 12, 2009

iPhone Apps Driving Sales

Filed under: Mobile Apps — Tags: , Mike @ 8:37 am

iphone-pizzaiPhone Apps are no longer just driving sales for Apple and application developers.  They are now starting to drive revenue for products other than the software itself.  Take a look at this article to see more about this interesting trend.

One of the specific applications discussed is an application being distributed by Pizza Hut.  Their application allows mobile ordering, and has already been downloaded 150,000 times since July 15th.  The move to mobile business applications is gaining momentum.

August 5, 2009

Razors and Razor Blades

Filed under: Industry News,Mobile Devices — Tags: , , Mike @ 10:55 am

Fierce Wireless had an interesting article about Verizon that I got a chance to read yesterday.  In the article, they note that Verizon has dropped the price on almost all of their smartphones to $99 or less with a 2 year agreement.  The speculation in the article is they are doing this to clean out their inventory in preparation for offering new devices that will be coming soon.  While I think there is validity to this claim, I think there is more to it than that.razorrazorshaving

After all, Verizon has been offering good deals on BlackBerry devices for several months with their buy one, get one free offer.  So why would they be doing this?  After all, each device they sell generally costs them more than what you pay for it.  Surprised? What many people don’t realize is that carriers like Verizon pay the manufacturer of the smartphone more than what consumers pay for the device.  They subsidize your purchase.  The iPhone was just about the only exception to this rule when it was first released.  If you recall, early purchasers of the iPhone payed $599 or $699 for the coolest smartphone on the market.  But later on, AT&T began to subsidize the price of the iPhone, and pricing to the end user dropped to $199.

Why do carriers do this?  It’s simple really, and it’s a model we are all accustomed to.  It’s all about razors and razor blades.  The maker of razor blades sell you the razor very cheaply, because they know you will buy blade refills and that is where they make their money.  It’s the same with carriers.  They subsidize the price of the phone so you have a lower entry price.  After all, on average people spend $50-$60 per month for each wireless phone.  The industry calls that ARPU (Average Revenue Per User), and it is one of a few numbers they watch very closely.  If they can make it easy for you to buy a new phone cheaply, they know you will sign up for 2 years at a run rate of $60 or so per month.  Not a bad model.

So, if you apply this same model to smartphones, you can see why it would make sense to lower prices on smartphones to get you to move to a smartphone.  It is also interesting to note that ARPU for smartphones is higher than for regular phones.  Carriers want and need us to consume more data plans, and smartphones provide a reason for us all to use more data, and not just voice.

If this whole idea sits wrong with you, like you are being tricked into something, it shouldn’t.  The more of us that use smartphones and data plans, the cheaper they become.  It’s like LCD displays.  When they originally were introduced on laptops, they were very expensive.  But as they produced more and more laptops, they refined the process and LCD displays became cheaper.  Now they are found everywhere including cell phones, GPS units, car stereos, TV’s, and the list goes on and on.  So in the long run, cheaper smartphones means more users of data services, and that means more powerful devices and more comprehensive data services for all of us.  And that’s a good thing.

July 21, 2009

Flying High

Filed under: Mobile Apps — Tags: , , Mike @ 11:46 am

It’s been a while since I posted.  It’s summer, and that means traveling, time out of the office, etc., and that has certainly slowed me down on posts.  However, I am in the office this week, ngorig62909and I did run across another interesting article.  The article discusses how the TSA and several airlines are starting to accelerate the use of mobile phones as vehicles for electronic boarding passes.

Here’s how it works:

  1. You go to your airline’s standard or mobile website to check-in for your flight.
  2. Once it comes time to print your boarding pass, you choose to have it sent electronically via email.
  3. You open the email on your mobile device while going through security at the airport.  It contains a 2D Barcode with all of your flight information.
  4. The TSA representative scans the PDF on the screen of your device with a barcode scanner to verify your electronic boarding pass.
  5. You pass through security and head for your flight.

I don’t know about you, but I think this is pretty slick.  I don’t know how many of you have taken advantage of this before, but I suspect we’ll all be using it in the future.  It reduces cost for airlines, because there are no materials consumed (paper and ink), or maintenance required for printers, and the TSA claims it is more secure.  And as far as I am concerned, it is more convenient.  Most of us always have our phones with us.

What I find even more intriguing about this process, is that it shows how smarter cell phones are capable of doing something you can’t do with a laptop.  You wouldn’t open up your laptop at a security checkpoint so they could scan an electronic boarding pass, but you can easily do it with your intelligent “phone”.  This is just another example of how new technology approaches are making the cell phone much more than something you talk and text on.

June 16, 2009

Mobile Phones are Saving Lives

Filed under: Industry NewsMike @ 12:16 pm

I read a very interesting article over lunch today.  It was on cnn.com, and it covered one use of cell phones in developing countries.  Turns out some organizations are using cell third-worldphones to collect survey information about epidemics, such as polio.  In these underdeveloped countries access to computer technology can be extremely limited.  My company has been involved in a couple of projects in developing countries, and I can vouch for how limited access to technology can be.  In fact, the article points out that there are only a little over 300 million PC’s in all of the developing countries put together.  I can tell you that even if you can get access to a PC, there is no guarantee you can get access to a decent network connection.

However, as the article points out, there are about 2.2 billion phones in these same developing countries.  Let that sink in for a minute.  That means that over half of all the cell phones in use in the world today are in developing countries.  If we stop thinking of these devices as phones, and start thinking about them as small computers (which is what they really are), it opens up a world of possibilities.  Even basic cell phones are being used as data collection device to shorten data collection cycles from months or even years, to minutes.  That increased speed makes the analysis and treatment of epidemics much more effective, and saves lives.

Because developing countries have so many cell phones per capita vs. PC’s per capita, they are skipping over much of what has happened in the US over the last couple of decades.  They aren’t moving to desktop PC’s, then to laptops, and then to mobile phones as their primary computing device.  Instead, they are moving directly to the mobile phone as their primary, rather I should say their only, computing device.  And it’s having a direct, and positive, impact on the lives of people around the world.  As I have pointed out before, cell phones are moving beyond just phones, and into the realm of mobile computers.  The interesting thing is that this may be happening as quickly in developing countries as it is in the US…maybe faster.

May 18, 2009

The Smartphone is Dead!

Filed under: Mobile Devices — Tags: , , Mike @ 12:54 pm

smartphoneAt least that is what Forrester Research says in a report that was just released.  That’s what I read in an email that I got today from Wireless Week.  Now, if your like me, and you’re in the mobile industry, my first thought was “You’ve got to be kidding me.”  However, as it turns out this is just a sort of sensationalistic way of saying that the smartphone is taking over.

Confused?  I thought you might be.  Here’s the deal.  The report contends that the term smartphone is now passé.  The reason they give for this is that “nearly all” mid range phones now have characteristics that were once considered to be the exclusive realm of smartphones.  In other words, it’s not the smartphone that is dead, it’s the term smartphone that is dying.  It’s becoming meaningless, because all phones (or at least the vast majority) are evolving to become smart.

If you’ve read this blog before, that should not be surprising to you.  Phones are becoming more and more like PC’s in their capabilities.  What this report brings out, is that evolution is restricted to the scope of those phones we once considered smartphones.  In fact, all phones are becoming “smarter”.  From a business perspective this is exciting.  It means that as the devices evolve, we’ll have access to not only information, but also applications to help us deal with that information from just about any cell phone.

April 21, 2009

CTIA, The Final Installment – Femto What?

Filed under: Mobile Devices,Mobile in Social — Tags: , , Mike @ 8:47 am

One of the technologies that was scattered out across the exhibitor area at CTIA, is a device called a femtocell.  What is a femtocell, you ask?  Think of it as a miniature cell tower connected to your broadband connection at home.  Here’s how it works.  You connect the femtocell to your cable or DSL modem at home and then you throw away your land line.  That’s right, open up the trash compactor, toss in your old home phone, and turn the compactor on.  You don’t need it any more. 

femtocellNow turn on your cell phone.  In fact, everybody at your house can turn on their cell phone.  As long as you are in the house, the femtocell works as your cell tower.  You can make and receive regular cell calls, but instead of going over the regular cellular network, they go to the femtocell, and then over your broadband connection.  I bet several of you already using parts of this technology.  At my house we all have cell phones, and we contract with our cable provider for our home phone service which goes over our broadband connection already via a technology know at Voice Over IP (VOIP).  So we have the two end pieces, but not the device that lets us use our cell phones over that broadband connection.

So why would you want to do this?

  1. First of all, you will get better cell coverage in your house.  I don’t know about you, but most folks call me on my cell anyway, whether it be for work or personal use, and I don’t get the greatest reception in my house.  How would you like four bars?  A femtocell can deliver that.
  2. You will save money.  I pay about $50 or so for a home phone line that I basically rarely use.  In fact, the primary people that call us on it are telemarketers.  Don’t really need those calls do you?  A femtocell is typically a fixed price service that is under $20 depending on how many lines will use it.
  3. You will save minutes on your mobile plan.  As long as your are on your femtocell, the minutes typically do not count against your plan minutes.

Believe it or not, more and more people are ditching their home phones anyway.  Clint posted an article a few weeks ago on MobileBizBuzz about how Oklahoma is leading the way in this trend.  Oklahoma has 26.1% of households who are mobile only.  That means they have no home phone (landline).  That is number 1 in the nation. 

What is so important about this trend?  The more people ditch their home phones, the more we are drawn toward a world that is completely mobile from a technology perspective.  In fact, it is already becoming a part of the fabric of our lives.  Check out your teenagers, and you will see most of them communicate primarily via their cell phone via text, voice, or even Facebook.  Mobility continues to move forward, and femtocells are just one more catalyst accelerating that move.

April 13, 2009

CTIA Part 3 – 4G is Faster Than a Scalded Dog

Filed under: Industry News — Tags: , , , , , Mike @ 2:59 pm

I’m not sure how much attention people in general actually pay to some of the terms those of us in the wireless industry use.  Let’s try this one for starters: 3G.  I’m guessing some of you probably have heard this and have a decent idea what it means, at least generally.  This knowledge is probably based on the likes of the new 3G iPhone.  3G is basically a general term used to refer to a set of faster wireless network technologies and protocols that have been in the market for the last 2-3 years.  If you have a cell phone with Sprint or Verizon, the incarnation you might be familiar with is EVDO or DO.  If you use AT&T, you may have heard the term HSPA.  I’ll spare you what the acronyms means, but in a nutshell the practical meaning of 3G is that each of us can get faster network access to our wireless devices.

For instance, if you have a 3G iPhone, you’re web pages will download faster (actually quite a bit faster), than if you have the original iPhone.  For those of you who travel like me, you might have an Air Card for your PC that lets you tap into one of the existing 3G networks.  It’s not as fast as your cable modem at home, but it’s way faster than previous wireless modems, and light years ahead of your 56K modem at home if you’re still stuck with that.

This year at CTIA many booths, and some of the speakers, featured the next generation of wireless network technologies: 4G.  4G, like 3G, comes in a couple of primary flavors.  You will begin to hear the terms WiMAX and LTE more and more over the next 2-3 years.  4G is the more generic term, and WiMAX and LTE are specific technology implementations.  Big deal, so what?  What does it mean to you, you ask?  The answer is simple: speed!

Let me try and paint a picture for you here.  If you currently have a cable modem at your home or place of work, you are probably experiencing on average somewhere aroundrunning-great-danes 4Mbit.  That means your computer is receiving 4 million bits each second from the network.  I average around this at my house, and I find this is fairly typical, though I do have friends that average closer to 7Mbit.  My point here is not to give you a specific speed, but to give you a frame of reference.  Now step forward with me into the world of 4G.  Imagine getting network access from your 4G iPhone (if it existed), or your 4G enabled laptop at something closer to 15Mbit to 20Mbit.  That’s somewhere around 4 or 5 times what you are getting in your home today, and it is what one presenter experienced in Portland recently when they did a 4G speed test.  That’s faster than a scalded dog, as we say where I’m from.

Think about it.  Speed like that really changes things.  From a personal perspective you could be riding down the road while your spouse is driving and watch a streaming TV show from Hulu.  You could even watch your favorite sport live through a number of on-line sites, all without jitter or delays.  From a business perspective that type of speed changes things dramatically.  Got a huge spreadsheet you need to review, or a large presentation you are updating?  No problem.  You’ve got speed that is as good or better than most of us experience in our offices.  Once that happens, we really will be able to do things any time, any place, anywhere.

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