Posts tagged Apple. iPhone

The smartphone revolution is upon us.  Devices are being offered for great deals, like the Blackberry Curve in a buy one get one free offer or the iPhone 3G, which is now available for only $99.  Consumers want to be connected to the internet no matter where they are, largely because the incredible capability of the iPhone has made users expect more out of their phones.  They want to watch YouTube videos, read their favorite blogs, check their email, and play games all on the go (and I hear that Twitter thing is pretty big these days as well).

The cell phone market isn’t the only place where data and the internet is changing what we do.  Web video is replacing the television because consumers want to watch their shows when they chose, not when the schedule demands it (not to mention avoid the price of cable).  Social media is giving us real time information about big stories, like the Iranian election, while CNN is busy showing reruns of Larry King Live.

This has me thinking about where we are headed.  I think one thing that’s going to change is the differentiation between types of data, who we pay, and how we pay for them.  Currently, we have many different means of receiving data of all kinds: a cable/satellite provider, an internet service provider, a telephone landline (well for some), a cell phone w/ data plan, maybe a GPS device for the car, a satellite radio, etc. and a bill for each one.

Customers are finding ways to blend some of these types, like tethering their computers to their phones to use their cellular data connection.  Or getting their video from sites like Hulu or from iTunes, instead of from a cable company.  Consumers’ demand is pushing these markets and distinguishing them from each other is becoming more difficult.

Companies like AT&T and Verizon offering cable, internet, phone, and mobile data is just beginning the change in the market.  These two are in good position to be the dominant players in content and data distribution, though two other companies whose futures are interesting are Comcast and Time Warner.  Moving forward we will see acquisitions and mergers, so these larger companies can strengthen their infrastructure and subscriber bases.

So what does this mean for consumers; how will the plans we purchase change?  The first thing that will happen is some sort of ubiquitous data plan.  This means that your home internet and your mobile phone (as well as your laptop’s data card) will all be on one plan.  This sort of plan has only become possible since 3G has become more prevalent and mobile data speeds are actually approaching those of broadband internet.

Within 5 years, laptops will come with both WiFi and 4G data connections built into them.  WiFi, nor physical connections, will die for consumers, because mobile networks would never be able to shoulder the load of all our data.  These big companies that form will have public WiFi connections in all sorts of public places, and our devices will transfer back and forth so that the transition will go almost unnoticed.

This all inclusive mobile data plan will also move into our vehicles.  Cars will come with full computers built in that are fully data connected. You will be able to stream internet radio, podcasts, and or even music from your home web server directly to your car.  How media is distributed to consumers is a whole other tremendous topic (that I will discuss soon in another post).

There are a few problems that have to be addressed.  Will the backbone of the internet be able to handle the increase in traffic the more connectivity will definitely create.  The internet is a complex thing, and someone will have to make the investment to lay down more fiber optic cables to increase the throughput of the internet.

The second concern is the merging of businesses with different business models.  In the cell phone industry you agree to a two year contract and get a subsidy on whatever phone you purchase, with the provider expecting to make that subsidy back over the course of the contract.  The cable providers do things a little differently.  They tend to give you a low introductory rate (but charge a nice fee for installation) to get you committed, but you still by the month and usually rent your cable box and modem.  Most of the time you can cancel this service at any time without some large fee.  How will these two business models meet to provide all inclusive service?

Though it’s unclear how these business will work, its definite that change is brewing in the world of data transfer.  These markets are maturing and companies will begin consolidating to save money and increase subscriber bases.  In my next article all discuss what this means for the future of content distribution, and possibly how these data distributers will look to the consumer.