Overhype

Overhype

by Mike Masnick


Filed Under:
sling

Companies:
at&t, sling

AT&T Claims Sling Made Changes To Get On The iPhone; Sling Has No Clue What AT&T Is Talking About

from the say-what-now? dept

We noted in the past how odd it was that AT&T blocked something like the place-shifting Sling Player from the iPhone, but allowed place-shifting streaming TV apps from partners like MLB.com. So it was worth highlighting that, recently, AT&T changed its mind and began allowing Sling, though in the announcement, it claimed that Sling worked with AT&T to make changes to the app to make it okay. Apparently, no one ran that bit of PR by Sling, who quickly spoke up to say it simply wasn't true:

"We didn't change anything... AT&T never discussed any specific requirements with us."
Perhaps what actually "changed" was the fact that the FCC has become interested in AT&T blocking apps in anti-competitive ways... Funny that AT&T didn't mention that part.

22 Comments | Leave a Comment..

 

Verizon Wireless Blocks 4chan; You Would Think It Would Remember What Happened When AT&T Did That

from the not-wise dept

Last summer, due to a DDOS attack emanating from IP addresses connected to 4chan, AT&T temporarily blocked access to 4chan... without giving a full explanation for why. If you know 4chan, you know why this is a bad idea. It took very little time for the 4chan community to retaliate (and, as you know, no one "retaliates" like 4chan "retaliates"), and only a few days later, when AT&T explained what happened, did 4chan back off. So, now comes the news this weekend that Verizon Wireless is blocking 4chan (this is just Verizon Wireless, not Verizon), and the company seems to be making the same mistake. No clear explanation of why. I'm sure there's a reason that Verizon Wireless can give, but not explaining that immediately seems like a huge mistake. Update: Not surprising, but looks like the same reasoning as AT&T's temporary block last year. Still doesn't explain why the company wasn't upfront in explaining it.

28 Comments | Leave a Comment..

 
Legal Issues

Legal Issues

by Mike Masnick


Filed Under:
contracts, details, mobile phones

Companies:
metropcs

Because When MetroPCS Says 'No Contract,' It Actually Means 'Well, Of Course There's A Contract'

from the truth-in-advertising dept

The mobile phone business seems to have a serious problem with taking words that have a pretty clear meaning in English, using them in advertising and marketing promotions -- but meaning something entirely different. For example, various mobile operators claimed "unlimited" broadband, but to them "unlimited" meant "really, quite limited." Well, it seems we've got another situation like that, such as MetroPCS's widespread marketing campaign that loudly proclaimed "No Contract." Well, guess what, it actually meant that there absolutely is a contract, and any customer who signed up for MetroPCS after seeing the "No Contract." advertisement would obviously know that, because in the welcome kit it sent, it pointed users to a URL, and at the bottom of that URL there was another link to a terms of service, and in the terms of service there was another link to "start a service request" which included some boilerplate about how you were agreeing to a contract. And, apparently, this is all very legal.

82 Comments | Leave a Comment..

 

New Data Shows No Decrease In Crashes After Driving While Yakking Laws Were Implemented

from the how's-that-working,-then? dept

We've been suspicious of whether or not "driving while yakking" laws actually do any good. There are already laws against reckless driving, and picking out specific driving distractions doesn't seem likely to change things, since people just switch to other distractions. A study back in 2006 found that driving while yakking laws don't make the roads any safer, and a brand new study has apparently surprised researchers in showing no impact whatsoever on crash data even as studies show that fewer people are holding phones to their ears while driving (thanks Chirag). Now, there could be plenty of reasons for this -- such as that people are just switching to ear pieces which can be just as dangerous. Or it could be that common claims about driving while yakking leading to more accidents are wrong. Or it could be more complex, with other variables having an impact, but which is hidden in the data. Either way, it certainly seems worth investigating more seriously. If the goal is better road safety, then we should make sure that the laws actually lead to that result. If they don't, then it's important to understand why not.

61 Comments | Leave a Comment..

 

Content As Advertising; Advertising As Content On The iPhone

from the vampire-weekend dept

Matt writes in with a great example of how the concept that content is advertising and advertising is content is moving to the iPhone in the most recent iPhone app for NPR:

In this app, the mobile analytics and advertising company Medialets is serving up an ad for the new album, Contra, by the band Vampire Weekend. At first, the ad just peeks out at the bottom of the NPR app, but if you click to expand it, it quickly takes up the entire device. So why would you want to do this? Because it's a video for Vampire Weekend's new song "Cousins" -- and thanks to some of the iPhone's unique features, you can actually interact with the ad, shaking your iPhone to change how the video looks.
Seems like a perfect example of how both content is advertising and advertising is content. In this case, the "ad" is actually valuable content that people want to see. And yet, that content is also advertising the band and its new album, and doing so in a fun and compelling way. Of course, separately, I have to ask if the band is both paying for the ad and getting paid royalties for the ad? After all, this is clearly an advertisement for the band and its new album, but we're always told by the recording industry that any usage -- even those like radio that act as advertising -- need to be paid for with royalties.

16 Comments | Leave a Comment..

 
Politics

Politics

by Mike Masnick


Filed Under:
indiana, law, politicians, sexting

Indiana Senators Rush To Put In Place Sexting Law When They Clearly Don't Understand Sexting

from the moral-panics! dept

One of the more recent "moral panics" that we've seen is around this concept of "sexting," where people (often youngsters who might not fully recognize the consequences of what they're doing) send either naked or at least revealing images of themselves to others. In the last year or so the press has written about it quite a bit, and while it seems like it's really just a situation that requires more education for kids to recognize what a bad idea this is, once you get a moral panic going, it's never long before politicians feel the need to "help deal with" the issue, "for the children," of course. Mark sends in the news that some politicians in Indiana have decided to tackle the issue with new legislation, though it's not at all clear that the state Senators debating the subject even understand what sexting means:

"Until some terrible tragedy happens where a child or teenager commits suicide because they have been bullied by e-mail, texting or sexting," said Rep. Sandra Blanton.
Bullied by sexting will lead to suicide? How? And how do you create a law to prevent that? Then there's the politician who wants to ban mobile phones in schools to deal with this issue:
"Keep them in lockers and not allow them in the classroom or on school property to do the sexting," Rep. Blanton said.
Really? The sexting happens on school property? If that's the case, then wouldn't the issue be public nudity -- for which I would imagine there are already laws -- rather than "sexting"? If he just means that the sending of these photos continues on school property, I'm not really sure how keeping the phones in lockers fixes anything. It just means those messages will be sent after school when there's even less supervision of what the kids are doing. I guess that's the head-in-the-sand approach to dealing with things, but I'm not sure how it helps any.

Certainly the issue of sexting is one worth educating kids about, so they recognize the dangers of passing on such photos which can quickly multiply and be spread further in amazingly embarrassing ways. But I don't see how any law helps the issue at all -- but plenty of ways laws can make things worse -- especially when the politicians writing and voting on the laws don't even seem to understand what the issue is beyond "sexting = bad!"

47 Comments | Leave a Comment..

 

Yes, Three Strikes Laws Have Unintended Consequences That Even Music Industry Execs Hate

from the surprise,-surprise dept

As noted earlier, I'm at the Midem music industry conference this week in Cannes, in the south of France. France, of course, has been at the forefront of many of the debates over copyright issues, with its Sarkozy-backed push to be one of the first countries to implement a "three accusations and you're off the internet" policy (despite Sarkozy's political party's own long history of infringing). There really hasn't been that much discussion this year about the whole three strikes thing (last year, it was one of the main topics), which seems a bit odd. However, I did randomly see a twitter message from the guy who runs a travel rental business here in Cannes, Lao Watson-Smith, pointing out that all these music industry execs are complaining about all their accommodations having locked down WiFi (even when it's offered free), and noting that the only reason why these connections need to all be locked down is because of the three strikes laws that they pushed through. And, indeed, it is rather annoying. My hotel has "free wifi" (which seems to go down regularly) but you still need a user name and password, and once you log in with one device it will not let you log in with any other device. You must use that one device exclusively. When the official WiFi went dead, I went in search of other networks, including one called "Free WiFi," but when I accessed that, it still asked me for my username and password (which I obviously don't have). It certainly is somewhat amusing to find out that the music industry execs are annoyed by the consequences of the law they so desperately claim they need.

45 Comments | Leave a Comment..

 
Wireless

Wireless

by Mike Masnick


Filed Under:
app store, apps, google voice, mobile

Companies:
apple, google

Google Routes Around App Store On The iPhone... Others Can Too

from the app-store-or-the-web dept

I was just recently suggesting that the massive focus on "apps" and "app stores" may be a red herring, as eventually many of those apps can be built via the web (especially as HTML 5 moves forward), without having to go through any kind of app store approval process. So it's worth noting that, in fact, Google has done exactly that with its Google Voice app for the iPhone (doing so because of problems getting a client-side app approved by Apple). While the app is still rough around the edges, it should be a reminder that there are ways around the app store, and web-based apps have plenty of potential.

35 Comments | Leave a Comment..

 

Yet Another Study Shows Txting Improves Kids' Spelling

from the ok,-are-we-done-yet? dept

While it still seems like the common belief is that "txt spk" and other sorts of abbreviated elements of the English language harm kids' ability to write properly, we've seen study after study after study after study after study after study has found exactly the opposite. They've found that most kids can tell the difference, and do understand what's proper and what's not. On top of that, heavy texters tend to be better spellers, because they're much more used to writing -- even if they tend to abbreviate the language when communicating via technology.

So it almost seems superfluous to mention that yet another one of these studies has come out and it, too, has found that those who regularly use txt spk have very strong literacy skills. But what's annoying is that both the researchers and the BBC act as if this was a "surprise." It's as if no one bothered to check to see if similar research had been done before, and found the many, many, many studies all saying the same exact thing.

16 Comments | Leave a Comment..

 
Overhype

Overhype

by Mike Masnick


Filed Under:
apps, client side, developers, iphone, kindle, web apps

Companies:
amazon, apple

App Store Overload? Kindle Gets An App Store

from the it-ain't-the-web dept

It's amazing how people see one semi-successful concept and suddenly everyone has to pile on. The iPhone's app store has certainly been a success -- much more in terms of making the iPhone more attractive than for most developers. But it has all sorts of people thinking that "apps" are in again, and we're seeing app stores pop up in a variety of different places. The latest is Amazon's Kindle, which hopes to make the ebook reading device more valuable with more apps.

It does make me wonder, though, if people are betting too strongly on app stores, and not recognizing why it works so well in some areas. I also wonder if focusing on apps and app stores is going to make people miss out on the fact that web-based apps (that don't need to go through any app store) may overtake client-side apps. We've already gone through this on the desktop, and one by one, web-based apps have come along that match (or sometimes exceed) the functionality of client-side apps, leading many to turn away from client apps altogether.

Separately, adding another app store to another device may only serve to confuse (or annoy) some users. If you have an iPhone and a Kindle, and there are the same apps on both, which are you going to use? It may depend on the app, but my guess is that in most cases the phone is going to win out over an ebook reader.

24 Comments | Leave a Comment..

 
(Mis)Uses of Technology

(Mis)Uses of Technology

by Mike Masnick


Filed Under:
iphones, it, support

In A World Of Bottom Up Technology, Should IT Support Your iPhone?

from the they-might-have-to dept

Sun / Intel This post is part of the IT Innovation series, sponsored by Sun & Intel. Read more at ITInnovation.com. Of course, the content of this post consists entirely of the thoughts and opinions of the author.

Back when the iPhone first came out, there were all sorts of stories about how it was no good for the enterprise. While it's certainly gotten better, it still does seem like the Blackberry is the enterprise smartphone of choice. Yet, many people really do like using the alternatives, and while the solution for many is to now carry around multiple devices, others are beginning to push for companies to support their own devices (iPhone or others). And this is becoming a bigger and bigger issue. These days, many technologies used in the office are coming from "the bottom up," meaning that they're personal technologies (hardware, software or services) that individuals are using/buying on their own first, and then realizing they're so useful, that they start using them at work too.

And that, of course, raises the inevitable question of whether or not the IT department should support those technologies. The easy answer (which I'm sure we'll hear many times over in the comments) is "of course not." But it might not be that simple any more. Ignoring or holding back those technologies entirely may actually harm overall productivity in some cases, and limit what employees can and should be doing. Now, obviously, I recognize the argument that a large part of IT's job is to keep things running and protect the overall setup from problems -- and letting in any technology and supporting it can make that very, very difficult. But it ignores the flipside of IT's role: enabling companies and their employees to be more productive through the use of technology. And, even if IT officially decides to not allow things like the iPhone, as the article above points out, it might not matter much:

Likely scenario: An employee is denied an iPhone (or possibly any company-provided smartphone) and decides to get his own personal iPhone for use at work. This surreptitious infiltration is actually a bigger concern than a handful of managers; at least with them you still get to control the configuration and deployment process. If you don't know that workers are using iPhones in your company, you can't secure them at all. You can't even be certain what data might be stored on them.

And since the iPhone is fairly easy for even novice users to set up -- they can sign onto wireless networks, access intranets, and even gain access to an e-mail server -- it's no stretch to imagine that a lone, unauthorized iPhone could seriously compromise confidential data, as well as access to your network and the services running in it.
So, a flat-out ban isn't going to do the trick, but actively supporting any technology people bring into the workplace is too much to handle and causes too many problems. So where is the middle ground?

38 Comments | Leave a Comment..

 

China Plans To Scan Text Messages For Unhealthy Content... Five Years After Announcing The Same Thing

from the it's-winter-reruns-everyone... dept

Apparently, it's time for reruns. The NY Times is reporting that China is now planning to start scanning text messages for "unhealthy content," which is defined as including any of various (secret) keywords supplied by the police. Now, given the recent ramp up in attention paid to China's censorship efforts, this might be interesting... if it hadn't been announced five years ago. This is what the NY Times wants us to pay for? I guess if they block off their content behind a paywall, no one would be able to search the archives of the NY Times to find out that that great paper had covered the story five years ago itself (though, a couple months after we wrote about it).

7 Comments | Leave a Comment..

 

The Killer Feature I Would Design Into An Apple Tablet

from the e-Reader,-we-hardly-knew-ye dept

To be clear, I've no influence in Cupertino, and the closest I've ever been to Steve Jobs was when I wore a black turtleneck skiing. But that said, there were a few developments at CES that got me thinking about a killer feature for a tablet. So here are the specific three developments from CES that stood out to me, and how I'd combine them in a disruptive tablet.

First, small, portable computing platforms were hot. No surprise to anyone, but Netbooks were all over the show, in creative new formats, layouts, OSes, and component make-ups. This sector has already proven to be a consumer favorite, and the OEMs are responding in force. Tablets, slates, and new formats were being shown by a variety of vendors hoping to get the jump on Apple, notably Microsoft in what could be described as an anemic Keynote by Ballmer.

Second, e-Readers were exploding out of the booths. There were new e-Readers on display from Huawei, Spring Design, Plastic Logic, Entourage eDGe and many more. Many analysts predict growth in the e-Reader sector, largely predicated on the notion that the readers use crystal clear e-ink screens, which greatly extend battery life, are easier on the eyes, and can be read indoors or out. Devices with standard LCD screens like Netbooks or iPhones churn through batteries too quickly to pose a direct threat to e-Readers. Thus, for now, this sector is seen as "protected" from the cheaper or more versatile Smartphones, Netbooks and tablets.

Third, there was an immense amount of innovation in screen configurations across Netbooks, TVs, laptops, etc. We saw two-screen laptops, touchscreens, tablets, double screen e-Readers, MEMS displays from Qualcomm, and more. Among the cool new screen technologies was one from PixelQi (discussed at GigaOm). The PixelQi (pronounced Pixel Chee) screen can operate in two modes: one which is like a standard backlit LCD laptop screen, and a second that closely resembles the e-ink of the Kindle. In this high-resolution, black-on-white mode, power consumption is cut to ~1/3 of a regular laptop screen. This mode also is easier on the eyes, and can be read easily in sunlight. PixelQi technology is cool in and of itself, since, as processors get more efficient, screens are becoming a relatively larger portion of the power budget - any savings here could have a dramatic impact on battery life. One could switch a laptop into "ink mode" and extend battery life at the expense of color.

I think you see where I'm going. If I were Jobs, I'd launch a tablet that used the iPhone OS, had access to the app store, iTunes, Safari browser...AND had an 8-10" dual-mode screen. Such a tablet could suck the air out of the room for e-reader makers. A company like Apple has the clout to get access to a wide range of book content, including the NYT bestseller lists. If so, Apple's tablet could quickly end the dedicated reader era. Consider a tablet that offers the value proposition of an e-Reader, a Netbook, GPS, and 100k apps. That's the kind of product that could justify a price premium over a $300 Netbook or Reader.

Either way, I see the dedicated reader market fading in the future, much as PDAs did. Not that they're not in demand, but the dedicated Readers will evolve and be subsumed into general-purpose tablets, or will be beaten by tablets that can do more. If it's not Apple or PixelQi next month, it's going to be somebody else within a year. Either way, buyers win: we're all going to benefit from the active innovation in the screen/display category, and more functional devices with better battery life.

64 Comments | Leave a Comment..

 
Wireless

Wireless

by Mike Masnick


Filed Under:
antitrust, text messages

Companies:
doj

Justice Department Finds No Problems With Text Message Prices

from the fair-enough dept

Every so often an article pops up here or there talking about how ridiculous text message prices are on a per-byte basis. Eventually one of those stories got politicians involved, and the Justice Department began an investigation. Thankfully, the inquiry has ended, and the Justice Department found no evidence of anything wrong. Looking at the pricing on a per-byte basis is pointless and mostly meaningless. Most people who use SMS text messages on any sort of regular basis have bulk plans included with their regular plan. The "list" prices are really a small part of the market. The fact that most of the operators raised prices is certainly not evidence alone of any kind of collusion. And if prices really get to be too ridiculous, then people will just start to move to alternatives. This seemed more like an investigation brought on for PR purposes because someone didn't like the way something was priced.

18 Comments | Leave a Comment..

 
Legal Issues

Legal Issues

by Mike Masnick


Filed Under:
pennsylvania, sexting

Prosecutors Still Want To Charge Girl Who Sent Naked Photo Of Herself For Child Porn

from the crime-and-punishment dept

You may recall last year that prosecutors in Pennsylvania wanted to charge some girls who had taken either nude or partially unclothed photos of themselves, and then sent them via their mobile phones, with "child porn" charges. This seems pretty ridiculous no matter how you look at it, and it was good that a judge temporarily blocked the prosecutor from moving forward. You would hope that this would give the prosecutor a chance to rethink this idea, and perhaps realize that it's beyond extreme.

Instead? The prosecutor is appealing the ruling and still wants to charge at least one girl with child porn charges. The ACLU is fighting back, not just for this particular girl, but apparently over the threats of felony charges on 16-girls, who were then forced to participate in a "re-education" class to avoid charges. I have no problem with children being educated about why such things are really bad ideas, but to threaten them with felony charges, especially when even the mothers of one of the girls says that photos were just some girls goofing around, and in most cases no worse than what you'd find it a typical Victoria's Secret catalog? That seems like a prosecutor going too far.

80 Comments | Leave a Comment..

 
Overhype

Overhype

by Mike Masnick


Filed Under:
iphone apps, losses, piracy

Companies:
apple

How Many Questionable Assumptions Can You Layer On Top Of Each Other To Estimate Bogus 'Losses' From Unauthorized iPhone App Downloads?

from the let-me-count-the-ways dept

A while back someone had sent me to a website I'd never heard of called 24/7 Wall St. that had a post claiming how much certain top blogs were "worth." The reason someone pointed me to it was because it had Techdirt in the list. What was amusing was that whoever wrote the article made a bunch of assumptions and every single one of them was wrong -- and some of them could have been checked with a simple look at our website. Given that every single assumption was wrong, the conclusion was equally laughable. I actually emailed them to point out a few factual errors in the post -- none of which were corrected. Since then I tend not to trust anything from that site -- though it has a habit of getting attention for similarly ridiculous "estimates," and people repeat them as if they were factual.

Allison K was the first of a whole bunch of you to send in the fact that the site is trying to "estimate" the "impact of piracy" of iPhone apps on Apple and app developers. While I commend the site on at least explaining its methodology, the more you read it, the more ridiculous it becomes. They simply layer questionable assumption upon questionable assumption upon questionable assumption, and when they get stuck, they pull out a random number. It's almost comical to read. As Allison noted, it reminds her of xkcd's famous comic of the Drake Equation, where one of the variables in the formula is defined as "Amount of bullshit you're willing to buy from Frank Drake":

It's nice to have some sort of concrete numbers, because people like to have numbers to discuss. But when they're based on so many layers of questionable assumptions, they tend to do a lot more harm than good. People will assume there's some real basis for them when there is not.

And, of course, as everyone should understand by now there's no such thing as "losses" from unauthorized access. There is only a failure on the part of the company to convince people to buy. There is no line in their financial reports on "losses" from such activities -- with good reason. The only issue is a business model issue, which is that the company has not given users a good enough reason to buy, so they chose to get the product elsewhere.

Update: And it gets more ridiculous. 24/7's response was a comment below that did not address any of the concerns but simply says that I must not have made it through my high school math class. Classy. Meanwhile, Dark Helmet points us to TUAW's takedown of the numbers, where they note that based on the assumptions, 24/7 appears to be assuming that there are 510 pirated apps per device. Uh. Yeah. Check those assumptions, folks.

50 Comments | Leave a Comment..

 

Once Again, Google's Customer Service Is Becoming An Issue

from the this-again? dept

We've had a whole string of stories in the last few months about communication problems from Google -- from users getting locked out of their documents to advertisers banned with no explanation or recourse to a blogger who went six months trying to get Google to turn back on a blog that it had shut down. I've heard from a few Google folks, noting that they recognize it's an issue, and it's something that some people within Google are trying to deal with. But given all of these problems on "smaller" issues, perhaps it's no surprise that there's been an outcry over the poor customer service people are receiving after purchasing Nexus One phones from the company.

Google does lots of things really well. But, clearly, customer service is not one of them. And while its massive success can hide (or at least minimize) the impact of such poor customer service, at some point it's really going to begin to hurt, unless Google finally wakes up to the fact that when people have problems, they want to be able to reach out to a human being who will listen to them, hear what they have to say and (hopefully) help. Some have claimed that this is just not Google's culture -- and perhaps that's the case, but at some point that cultural flaw may cause much larger headaches.

26 Comments | Leave a Comment..

 

Man Sues Neighbor For Not Turning Off WiFi And Cell Phone

from the science? dept

For years, we've heard of people freaking out about WiFi or mobile phones, claiming they have "electromagnetic sensitivity" to those things. The only problem is that in double-blind tests, there is no evidence that any sensitivity is due to electromagnetic waves. And yet, people keep insisting it must be true. In the latest extreme case, a guy in Santa Fe is suing his neighbor for not turning off his WiFi or mobile phone, saying that it caused him to become homeless:

Firstenberg "cannot stay in a hotel, because hotels and motels all employ wi-fi connections, which trigger a severe illness," says the request for a preliminary injunction. "If (Firstenberg) cannot obtain preliminary relief, he will be forced to continue to sleep in his car, enduring winter cold and discomfort, until this case can be heard."

117 Comments | Leave a Comment..

 
Legal Issues

Legal Issues

by Mike Masnick


Filed Under:
performance, ringback tones, ringtones

Companies:
bmi, t-mobile

BMI Sues T-Mobile, Claims It Needs To Pay Up Over Ringback Tones

from the are-ringbacks-a-public-performance? dept

I'm still in the camp of folks who doesn't quite understand "ringback tones" -- the ugly stepchild of ringtones, where it's not what music your phone plays, but what music a caller hears when they call you and are waiting for you to pick up. While ringbacks have been a big deal in Asia, they're still a relatively small market in the US. But, that's not going to stop collections societies from demanding cash, of course. mike allen alerts us to the news that BMI has sued T-Mobile over its ringback tones. Of course, here's the thing: a court has already established that ringtones are not performances, so are ringback tones performances? Or, of course, T-Mobile could just ban the use of any BMI songs as ringbacks, and then see how those artists feel about how BMI is "protecting" their interests...

17 Comments | Leave a Comment..

 

Embedded Wireless: A Step Towards Dumb Pipes?

from the open,-but-not-that-open dept

At a FierceWireless panel during the CES show today, panelists from Verizon, AT&T and T-Mobile discussed the progress the embedded sector has seen over the past year and is expected to show in 2010. Embedded wireless, from a consumer electronics perspective, means factory installing a cellular radio into a (non-phone) device. The devices range from the obvious Netbooks and Kindles, to the less obvious cameras and media players, and more. The panelists were keen to point out that in the past year, the pieces of the puzzle all fell into place -- what had been lacking was affordable embedded modules, strong data networks, and flexible enough rate plans that didn't try to capture $60 a month from every device. I would agree that the carriers have finally become eager to consider a range of pricing models, all in the past year. From ad hoc daily netbook connection fees, to the integrated pricing seen on the Kindle, the Nook, and Garmin Nav devices, we're finally seeing some flexibility in the way carriers charge for data access. It's about time, too: for too long mobile data followed the $80 Rule, where the only way to get cellular data was an $80/mo lengthy contract.

As an example of the changes from just the last year, Verizon Wireless previously offered just a $60/mo contract for laptop connectivity, where now they sell a prepaid day pass, a week pass, and different tiers of subscription plans. That's good progress, but market forces are going to demand a wider range of solutions, and at more reasonable discounts for lower tiers. For example, how long will the market support Verizon's 5GB/mo subscription at $60 and their 250MB plan at $40? The lower plan is 5% of the throughput at 66% of the price! Clearly, there is room for these prices to move a little more.

An interesting point raised by Sue Marek of FierceWireless was whether embedded connectivity deals like that on the Kindle relegate the carrier to dumb pipe status. After all, when a great embedded wireless user experience is created, the carrier becomes invisible. Good question, but I think the answer is no. The carrier becomes a white label partner, but not a dumb pipe. That's because, so far, most of these deals have involved cooperation between the CE vendor and the telecom operator, in order to make the activation seamless and simple for the user. The carrier has been integral to the development, activation, and service management. That trend is likely to continue for the reason I explain in the following paragraph.

Consumer Electronics makers, like Garmin, could just put a GSM radio in their devices and say "connect to your choice of service provider by inserting your SIM". However, the cellular module costs are hovering just under $100, and that's a big nugget to add to the Bill of Materials on any CE product. And the CE makers know that they have leverage, since they have the ability to steer their customers onto a specific wireless carrier, and that any carrier will be attracted to a block of new subscribers. Guess what happens... that old, familiar word, subsidy. If Garmin chooses to partner with a specific carrier, the carrier will pay for the opportunity and in effect subsidize the device's radio. This brings down the cost, and the MSRP of the product, which in turn helps Garmin and the consumer. For this reason, until the radio modules are very cheap (like Wi-Fi modules are), we will generally see embedded wireless tied to a specific carrier.

8 Comments | Leave a Comment..

 

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Wednesday

4:11am: Apple Blocks Google App From iPhone While Trying To Patent The Same Invention? (33)

Tuesday

2:22pm: Google Isn't Targeting iPhone Users; It's Targeting Everyone Else (Maybe) (49)
2:10am: Unexpected, But Good: Justice Department Says FCC Should Free Up More Spectrum (13)
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3:15pm: GSM Encryption Cracked... GSMA's First Response? That's Illegal! (25)

Monday

11:04pm: CenturyLink Won't Provide DSL, Wants To Block Competitor From Getting Fed Funds To Offer Wireless (35)

Wednesday

4:33pm: NY Times Seems To Recognize That Nokia's Patent Fights Have Nothing To Do With Innovation (18)
2:58pm: Maine Wants Mobile Phones To Carry A Cancer Warning... Despite Lack Of Evidence; [Updated: SF Too] (26)
6:06am: Verizon Wireless Denies It's Charging People Phantom $1.99 Fee, Despite Tons Of Complaints (59)

Tuesday

8:38am: HTC Sends Cease & Desist To Developer Who Made Similar Android Widgets (23)

Friday

7:10am: As AT&T Complains, People Notice That It Has Decreased Infrastructure Investments, But Wireless Revenue Is Way Up (57)

Wednesday

8:13am: Does Google Need Permission From Philip K. Dick's Estate For The Nexus One? (36)
1:20am: No, Sending Spam Text Messages Is Not The Same As Hacking Someone's Phone (13)

Monday

1:17am: Apple Launches Nuclear Patent Counterstrike On Nokia (17)

Wednesday

7:22pm: AT&T's Bait And Switch On iPhone Unlimited Service: We Screwed Up, So Now You Have To Pay More (82)

Tuesday

2:02pm: Woman Sues Sprint Over Driving While Yakking Death (59)

Thursday

8:14pm: Bill Introduced To Limit Early Termination Fees (29)

Wednesday

4:40pm: There's An Apology For That: AT&T Dismisses Its Pointless Lawsuit Against Verizon Over Ads (15)

Tuesday

7:20am: Australian Operator Optus Deliberately Blocking Android Paid Apps (13)

Monday

6:00am: UK Pub Owner Fined Due To Unauthorized Downloads On Free Pub WiFi? (42)

Thursday

1:35am: Judge Says 'There's An Ad For That...' And It's Ok For Now (14)

Wednesday

4:13am: MPAA Gets Town To Turn Off Free Muni-WiFi Over Single Unauthorized Movie Download (53)
7:22am: Time For Palm To Drop WebOS And Embrace Android (51)
12:06am: AT&T Sues Verizon Over 'There's A Map For That' Ad Campaign (51)

Tuesday

9:55pm: Reason To Have A Distinct Ringtone? So You Can Find Your Mobile Phone At The Dump (22)
3:15pm: David Brooks: Mobile Phones Are Destroying Courtship (20)

Monday

6:32pm: Is Google Going Better Than Free On Navigation? Will That Set Off Antitrust Alarms? (30)

Friday

11:57am: Wrong Number Phone Call Results In Shooting; Some People Need To Chill Out (46)

Thursday

8:19pm: Canada Decides That Canadian Ownership Is More Important Than Real Telco Competition (29)

Monday

8:38pm: Why Do Some Politicians Want To Ban You From Putting New Software On A Prepaid Mobile Phone? (34)
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