While the end of days may not be here for mobile carriers like AT&T, Verizon or Sprint-Nextel, the mobile web is driving fundamental change in the industry. Much like the internet forced better pricing and more choice for land lines (those still exist, right?), the mobile web will force carriers to evolve or die.
So what are the forces threatening the power structure of the mobile industry?
- 7. Free Mobile AIM Client
- 6. Google Maps Mobile My Location Feature and API
- 5. Mobile Flash
- 4. Mobile VOIP
- 3. Palm Centro
- 2. iPhone with GPS
- 1. Google Android
Last week Mobile AIM for Windows Mobile devices was released in Beta without much fanfare. However, it marked the first time AIM has released a client that you neither pay to download nor pay a monthly subscription to your mobile carrier to use. The free AIM client is completely ad supported and runs a small ad beneath your buddy list and the bandits at the carriers don’t get a cut of the take on this one.
While many phones on the market today still don’t have a free and open GPS integrated, Google Maps for Mobile has a My Location feature that allows users to see their approximate location on their handset without paying the carriers a monthly fee to access the GPS chip in the phone *that you bought*. While it may not be perfect, it allows you to get directions or search for nearby restaurants without entering your location. The My Location API will just add to the threat by opening the service up for any developer to create applications for it.
It’s still very early in the game for mobile video on your handset. Some carriers are charging for TV clip download services and the iPhone allows you to buy iTunes videos to play on your phone. However, with the promise of Flash plugins for the iPhone 3G and Windows Mobile, users will have the ability to play any web video on their handset. Even though it’s not iTunes quality, it will make mobile video free.
Mobile carriers love to heap charges onto your plan for monthly minutes, messaging plans and data plans. With companies like Skype and Fring working out the kinks in handset VOIP clients and 3G speeds finally starting to cover major US cities, the need for monthly minutes may be drawing to an end. Anyone remember long distance plans?
This week Palm announced that they’re going to sell unlocked phones directly to users for $299 and will include the Google My Location Feature. While it’s nice to get a heavy discount for signing a contract, unlocked phones give users the ability to change carriers, adding to the competition and price pressure in the mobile industry. Bold maneuver, Palm. When are you unlocking Google My Location on *everything?*
Both Verizon and Sprint-Nextel phones have GPS services built into the handset, but they charge you on a monthly basis to use *your own* GPS for directions or other services. iPhone 3G will open GPS access to users and provide services through their massive developer community. this enhances pressure on other handset makers and carriers to relinquish their death grip on our phones. There are already a number of location-based services for the iPhone and we can expect it to be a hot topic in the coming months.
The combination of Google’s developer community and open source handsets are a strong force to be reckoned with in the mobile industry. Open source phone software means that developers have full access to the components in the phone, freeing them up to develop applications that include VOIP, video and GPS and further encouraging users to switch networks.
Now the only question is: Who will innovate their business model and arise as the new mobile carrier of choice?
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[...] search market share. In addition, it will be telling to see whether the trend toward users having greater control over their handsets changes anything as well. Share and Enjoy: These icons link to social bookmarking sites where [...]