No Contract, No Locking, Nobody

Sprint CEO Gary Forsee says Sprint is thinking about expanding the test area for an unlimited calling plan that doesn’t require customers to sign a contract. That's something Leap Wireless and MetroPCS already offer. Nokia meanwhile appears poised to start selling unlocked N95 series really-smart phones imminently. So far, no carriers seem willing to do both.

Of course, there are good financial reasons why carriers like contracts and locked phones. The former provides a more predictable revenue stream and the latter ensures lower churn. Apple doesn't like unlocking either, as it now participates in the recurring revenue stream.

At least some users would benefit from unlocking and contractless service. Anybody buying a Nokia N95, for example, is spending enough on a device that the portable computer (it seems too limiting to call it a phone) clearly is more important than any network.

Of course, the carriers increasingly will find themselves in the position of angering power users who can figure out other ways to use unlocked devices, with or without contracts. To the extent that an N95 really is a mobile media and Web platform, outfitted both with Bluetooth and Wi-Fi, users can simply avoid any carrier "calling plan" if they are willing to put up with a little hassle and use Wi-Fi for connectivity.

That won't be very desirable for anybody who really needs mobile calling, but lots of people choose to carry two devices in any case. So maybe one of the new choices is one device for mobile email and voice, and the second for rich media and rich Web browsing.

It isn't so clear to me that a heavy email user is going to opt for an N95 in any case. The N95 excels as a rich media device (audio and video performance is spectacular) but won't satisfy a BlackBerry addict. The BlackBerry, though, isn't so great as a phone and really doesn't measure up as a media player.

Carriers might not like it, but devices are becoming the drivers of purchase and use behavior for a growing segment of the user base. Sure, the presence or non-presence of 3G capabilities is an issue. Operating system is getting to be more important. And then there's the blasted CDMA or GSM choice to be made. Pricing plans still are important, to be sure. But device coolness arguably is enough to outweigh the other considerations.

N95 might be among the first devices that test the theory that a powerful enough rich media device can get traction using Wi-Fi connectivity as an alternative to "mobile network" connectivity. Broad traction still will require 3G GSM. But N95 is the first device I've experienced that gets one to thinking about using it in a way similar to a laptop, rather than a phone. A Wi-Fi-equipped iPod is sort of in the same category.