$431 Average Unlocked Mobile Phone Cost

The average price of an unlocked mobile phone in April 2010 was $431.49, up from a March average of $387.22. ABI Research found the average subsidized April smartphone price from retailers (not mobile operators) to be $43.64.

In contrast, the subsidized average price available from operators (the big “top four” plus three Tier Two operators) was $117.08. The price differential between the largest four operators is about 18 percent.

The point, if you remember your college economics, is that lower prices for any product lead to higher demand. 

Average Subsidized Smartphone Price from US Operators Rises to $117.08 in April | Press Release | ABI Research

$100 to $150 Android Tablets Coming This Year

Via Technologies Inc., the Taiwanese computer-processor company, expects $100 tablet devices containing its chips to reach the U.S. in the second half of 2010, offering a cheaper alternative to the iPad.

About five different models, ranging in price from $100 to $150, will be available.

Just Another Mobile Phone Blog: Via Says $100 Android Tablets Will Challenge the IPad This Year

Technology Helps Workers Do "More with Less:" It Has To

Nearly one in two Americans (48 percent) who use technology in their everyday jobs say that they are now required to do more work with fewer resources due to the current economic climate. As an example, nearly one third (30 percent) feel that they need to stay connected to work 24/7, even during weekends, breaks or holidays, according to a new survey by Intercall.

That is likely one reason why the United States has the highest percentage of mobile workers in its workforce, according to February 2010 data from IDC, with 75.5 percent of the workforce, or 119.7 million people, expected to be mobile by 2013.

And 79 percent of them plan on taking their work-related devices with them on vacation, according to  Osterman Research.

Fully 72 percent say that advanced technology, such as conferencing and collaboration tools, enables them to work faster, better and improves their morale – because they see the company providing them with the right resources and tools to "do more with less," according to Intercall.

One in two American workers (48 percent) report being constantly required to do more with less, while 39 percent report that they’ve been doing the job of two people because of the impact of the economic recession, Intercall reports. The issue, of course, is if, when and how that will change in the future.

One in two workers say that taking time off of work is increasingly challenging, while one in three
workers say that they feel like they need to stay connected to their work 24/7.

The Intercall survey was conducted online among a national sample of 2500 Americans 18+.

Interall survey results here

see related article here

LTE is About Cost of Providing Service, As Much as Bandwidth

The cost of carrying one megabyte of data over its LTE network would be half to one third the cost of carrying the same data over the company’s current 3G network, Lowell McAdam, Verizon Wireless’ CEO, says. That is going to be good news both for users and mobile services providers.

Bandwidth services providers universally need to improve the efficiency of their networks, since increased data consumption typically involves non-linear revenue effects. In other words, providers earn less money, on a revenue-per-bit basis, the higher the amount of bandwidth they provide.

And though consumers will not likely appreciate a gradual shift to buckets of usage, so long as the plans, pricing and consumption patterns are relatively closely matched, people can adapt. People are used to buckets of voice and text messaging, for example.

But key to crafting such plans is that they are viewed as fair. A lower cost, higher capacity network that works better for key applications such as voice and video is a likely prerequisite.

User patterns also are changing. Unlimited plans work quite well for users and providers when consumption is low. But most users consume more bandwidth over time, driven especially by video use, which requires an order of magnitude to two orders of magnitude more capacity than voice, for example.

Verizon's coming shift to buckets of usage for multiple devices also makes sense. As users shift to use of broadband for multiple devices, they will not prefer paying for access to each discrete device. Also, usage profiles vary by device.

Cameras and e-book readers will not typically demand much bandwidth. Nor will voice applications. Smartphone web browsing will consume more, but smartphone data consumption typically is far less than from a PC. Blending usage from a range of devices, and allowing consumers to pay once, for access on all the devices, will save users money and provide more value while at the same time allowing service providers to offer service on terms that are sustainable.

FT.com / Telecoms - Verizon to offer 4G customers ‘buckets’ of data

Wi-Fi-Capable Version of Skype for Smartphones Coming Later This Year

A fully-featured Android client from Skype will be available "later this year," Skype says, and that version will include video support and be usable across all mobile networks, unlike the more restricted mode Skype now finds itself using on the Apple iPhone and Verizon Droid, for example, meaning among other things that Wi-Fi support will be available.

That isn't supported today on AT&T or Verizon networks and devices, although there may be times when users are happy their Skype voice sessions on a Droid actually are laundered through the Verizon voice network, for reasons of stability and voice quality.

The move will not dramatically alter the economics of mobile voice services, at least at first. But there isn't much doubt that mobile VoIP will, over time, erode the amount of money and profit margin voice represents for the mobile industry, forcing mobile operators to change their revenue and business models, just as fixed-line operators now are having to adjust.

iPad is What You Want, Not What You Need

Though we are far from knowing the ultimate success or impact of the tablet PC movement, there is some evidence that Apple is, in fact, creating yet another new market, rather than simply reshaping or displacing an older market.

Gartner Group analyst Carolina Milanesi says "I am also more convinced that this is a device that you want and not a device that you need." That is an instructive comment, as it suggests users may be finding the iPad less a full substitute for a notebook PC or netbook and more a "different" device that might be used in different ways.

"Between my iPhone and my MacBook Pro I have to consciously decide to use my iPad to do anything but read a book, which is the only thing I cannot do with the Pro and I would rather not do on the iPhone because of the screen."

The use case here is, as Apple hoped, something potentially different from a smartphone or a notebook PC.

iPad goes on sale today across key markets in Europe

How are Telcos Like the London Times?

"Newspapers have found that chasing page views in the hope that advertising will save them is hopeless," says John Gapper, Financial Times columnist. And the newspaper industry's encounter with the Internet is very-much akin to the telecom, publishing, music and retailing industry's similar encounter: aside from removing a good deal of profit margin from the legacy business, the new Internet ecosystem will force providers to embrace new revenue models that supplement the traditional sources.

Where newspapers have had two sources--subscribers and advertisers--in the future they might require additional sources. Think about Bloomberg, for instance, which offers business information services but also television, radio, the Internet and printed publications.

Likewise, where most telecom providers have in the past had only one major revenue source, namely subscribers, in the future they likely must create additional revenue streams by providing valuable services to business partners, thus becoming "two-sided" or "multiple revenue stream" operations.

The point is that the Internet undermines the old revenue ecosystem and demands creation of a new model. It typically is the characteristics of success using the new model that remain murky.

Giving up on Internet-driven readership, News Corp. will soon put The London-based Times behind a firewall and even will prevent Google and other search engines from indexing the paywall content. television, radio, the Internet and printed publications.

The point is that News Corp has concluded there is no viable business model in the new Internet distribution system, save the closed model that essentially retrenches from wide Internet distribution.

Some might argue that is fundamentally what will happen with most service provider revenue from voice services as well. It will not prove viable except as a more-limited service more focused on some higher-paying customers, as much traffic bleeds off to free and low-cost alternatives made possible by the broadband accessed Internet.

News Corp estimates that the marginal revenue from an occasional browser is less than one tenth of a penny a year. Group M, the media buying agency of WPP, refers to the bulk of news surfers as “useless tourists” who not only pay nothing but have little advertising potential.

“Free distribution of premium content is like eating your babies," says Group M. "You will give value away until you go bust.” It's recommened strategy to avoid what it calls a “permanent oversupply of digital inventory” on the open web is by using a paywall to “lift the publisher out of remnant inventory and restore a much smaller but aggregated audience.”

Trade wide distribution for a smaller number of customers willing to pay, in other words. "Nice to have" must become "must have" for the strategy to work.

News Corp seems clearly to have concluded there is little money in online news, given the number of "free" providers. Providers in other industries, including telecommunications, will face different tactical issues, but the same strategic issue.

Over time, choices will have to be made about where it is possible to provide value, and where revenue streams therefore can be created and sustained. Willy nilly embrace of new channels likely will work no better than it has for most newspapers that have gone "online."

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