Kindle's Not All Bad: It Might Be A Turning Point For Non-Phone Wireless Devices

from the there's-always-something dept

I agree almost entirely with Tim Lee's assessment of the Kindle e-book reader, posted Monday on these pages, but as a wireless and telecom analyst, there are aspects of the device that are interesting and important - unfortunately for Amazon, they aren't going to help make the Kindle a success. The most interesting factor is that Amazon is basically launching an MVNO, called Whispernet that will use the Sprint EV-DO network. It certainly won't be the first MVNO on Sprint, and it won't be the first mobile device maker to brand the wireless service as their own (think Palm VII's Palm.net, or Blackberry.net when they both resold Mobitex service). But the Kindle is one the first mainstream consumer electronics device we've seen that is not a computer and not a phone but which still connects to a mobile broadband network.

This portends a future (that Sprint has been talking up a lot lately with WiMAX) where myriad consumer electronics devices like cameras, GPS devices, sensors, signs, etc. all connect to the "cloud" and have service either bundled in retail prices, or into some other service fee like Amazon is charging for content. This kind of device is a break from the normally carrier-controlled handsets we usually see, and is interesting for that reason alone. It's also a break from the $80 rule, where non-phones can only connect to cellular data for $80/mo. Since the Kindle device has limited Internet functionality, Amazon can predict average monthly EV-DO throughput per device, and negotiate a much better wholesale data rate from Sprint than $80, and can then afford to bundle that into content pricing. Don't get me wrong -- I don't agree with the content pricing on the Kindle. But the launch of an "Open Access" consumer electronics device with wide area network access bundled in has got me excited. Imagine now a GPS device from Garmin or TomTom that comes with a cellular radio for traffic updates, local fuel prices, etc, and the data plan is bundled into the retail price. Wow! Consumer electronics devices that could work right out of the box with full mobile connectivity, and a carrier that is willing to wholesale reasonably for that network connection! The times are finally changing.


Reader Comments (rss)

(Flattened / Threaded)

  1.  
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    Old_Paranoid, Nov 21st, 2007 @ 11:54am

    e-book reader

    An "open access" device would be nice, but I want a device that allows me to read common format docs, typically in .pdf, .txt, simple .htm / .html, and maybe .rtf formats. While I could use the wireless to get the current headlines, it would be far cheaper for me to set my PC to use its broadband connection to download the newspaper / journal sections I am interested in for reading on my commute. I am willing to download these from my PC or read them from USB devices or SD cards. I don't care about buying e-books.

     

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  2.  
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    Shun, Nov 21st, 2007 @ 12:19pm

    Not exactly open access

    If the e-book reader is limited to reading e-books in Amazon's own proprietary format, it is not an open access device.

    Also, your quote above is slightly misleading: "Amazon can predict average monthly EV-DO throughput per device..." if they assume that all Kindle buyers use it solely for the purpose that Amazon intended.

    Most likely, someone will "jailbreak" this device and get it working as a generic tablet, with EV-DO connectivity. This makes throughput per device somewhat unpredictable. I'm sure Amazon will attempt to lock it down, then the whole cat-and-mouse game can begin with this vendor, as well.

    I'm looking forward to seeing some product, and pictures of Kindle guts.

     

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  3.  
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    Michael Long, Nov 21st, 2007 @ 12:32pm

    Misses the point.

    As this points out, anyone who complains about blogs not being free is missing the point.

    Yes, you can get the blog "free" as long as you're at home connected to your piad DSL line, or connected to the internet at a coffeeshop with free wifi... but what about elsewhere? What you're paying for then, is not so much the blog as it is for the blog and for the limited EVDO connectivity needed to access it from practically anywhere, at any time.

    And it may not be a solution for you, specifically, but it may be just the ticket for someone else. Either the price is too high, or it's not. If too high and there aren't enough buyers, they'll drop it, or not. And if you think it's too high, then you can always vote with your dollars, or lack thereof.

    But I think it's way, way too soon to call the game. Anyone remember "No wireless. Less space than a Nomad. Lame."?

     

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  4.  
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    Me too, Nov 21st, 2007 @ 12:54pm

    Re: Not exactly open access

    You beat me to it. I give it about two weeks before someone jailbreaks it.

     

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  5.  
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    Derek Kerton (profile), Nov 21st, 2007 @ 1:01pm

    Wrong Subject

    #1 said "If the e-book reader is limited to reading e-books in Amazon's own proprietary format, it is not an open access device."

    Sorry to be unclear. The Kindle is not the "open access" device to which I'm referring. I'm referring to the cellular network, which is now open to be accessed from many kinds of CE devices which are NOT sold by the wireless carrier. That is new and an important change.

     

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  6.  
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    Old_Parnoid, Nov 21st, 2007 @ 1:08pm

    Re: Misses the point.

    I am not the target market, but I assume that there are others like me out there, as a potential market. Amazon will never market to the like of me, as I try to minimize my monthly service fees.

    These devices are too expensive for me. I am looking for a e-paper class reader in the

     

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  7.  
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    Max Powers, Nov 21st, 2007 @ 2:33pm

    More Fee

     

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  8.  
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    Max Powers, Nov 21st, 2007 @ 2:37pm

    More Fee's

    I don't want more access fee's either. This product does nothing for me personally but I'm sure there will be demand for it, especially because many people think they must have every new gadget that comes out.

     

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  9.  
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    Improbus Liber, Nov 21st, 2007 @ 3:52pm

    Fees

    I am glad I am not the only one sick and tired of being nickel and dime'd to death. All I want is a reader that is 8.5x11, 1 cm or less thick, an SD slot and maybe a stylus for notes/markup.

     

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  10.  
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    Joseph Hunkins, Nov 23rd, 2007 @ 1:14am

    Kindle

    Great points here. The Kindle does not seem likely to succeed for Amazon - I think the cost alone challenges Kindle market viability - but it offers some great ideas for future devices, many of which will be based on Android.

     

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  11.  
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    Barney Fife, Nov 23rd, 2007 @ 2:42pm

    Who wants to lug around an ugly piece of shit like this, and who really wants to let Amazon keep track of everything you read? Not me. The new touchscreen tablets are going to give the stupid kindle device a well deserved spot in the trash heap of stupid, overhyped, tech devices.

     

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  12.  
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    trademark registration, Nov 24th, 2007 @ 12:40am

    I think this is exactly right. The future will bring more and more devices that have us all connected to the internet in one way or another. And I don't think this is such a bad thing, either.

     

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  13.  
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    Silisonlips, Nov 24th, 2007 @ 5:47am

    Did Amazon ever hear of a library...

    How about giving me an e-book that lets me read "free" books from the public library (oh, those already exist!). With Audio and e-books available on most public library sites, why in the world would I use something like this that limits/locks me into using a poor performing wireless carrier? Not to mention the subscription cost and cost of each book.

    Hey everyone, let's do something old fashioned and go to the library - from our homes on the Internet! Not to mention taking advantage of what we pay out in taxes...

     

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