Monday, April 02, 2007

Has Cellular Talked Itself Out? has an article about how the cellular companies have spent billions to build 2G, 2.5G and 3G services that most people don't use.
There are signs that wireless operators have overshot the mainstream market. Despite billions of dollars invested in network upgrades, only one out of every three domestic wireless subscribers presently utilize “2.5G” services such as multimedia messaging and ring tone downloads. Despite the hype surrounding third-generation (3G) wireless connectivity, fewer than 10% of domestic wireless subscribers utilize 3G services such as music downloads or streaming video. It is possible that wireless providers are supplying too much performance for the mainstream market. Companies like Verizon and AT&T should consider shifting focus to customer retention and away from profit maximization. Rather than always seeking to liberate the last dollar from customer wallets, they should seek to deliver exactly what customers want. Also, providers should consider creating separate organizations to experiment with new technologies and business models. If profitable, sustainable strategies emerge from these new organizations, companies should give them the resources they need.
Is he really suggesting that the big boys not bleed us dry and go back to R&D??

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