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Mobile Bandwidth Crisis

Inside Digital Media, Inc., July 2010, Pages: 20


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The Need: AT&T Wireless’ decision to impose usage sensitive pricing on iPhones and iPads portends turmoil in The Wireless Internet. Consumers dislike metered pricing and are much less likely to increase usage of services that require it.

Capabilities of the two Apple products only compound the problem. For example, the iPad’s screen is seven times larger than that of the iPhone. Thus it is much more likely to be used for streaming video and other rich media applications. Simultaneously its owners will require higher resolution images in order to get a satisfactory viewing experience. Similarly, the iPhone-4’s FaceTime video calling feature is expected to be so popular that AT&T Wireless banned it from the company’s cellular network.

The true legacy of Apple’s innovations will be the coming-of-age of The Wireless Internet. They are harbingers of a day when consumers are routinely and persistently connected to the Net. It is the evolutionary destination implied in a slogan popularized by Sun Microsystems twenty years ago, “The network is the computer.”

“The Bandwidth Crisis” will be a forcing factor leading The Wireless Internet to come-of-age. There will be monstrous traffic growth and wonderful new business opportunities for adroit companies and investors. Some opportunities will require regulatory licenses, but others will not. For example, location-based advertising will devastate newspapers but create massively profitable business for others.

Who Should Buy:

- Anyone wanting to learn how a mobile bandwidth shortage can be minimized or circumvented.
- Computer manufacturers wanting to learn how to compete with the iPad.
- Cell phone makers wanting to learn how a bandwidth shortage can be avoided.
- Venture Capitalists seeking promising opportunities in The Wireless Internet.
- Institutional Investors wanting to identify companies that will helped, or harmed, as The Wireless Internet comes-of-age.
- Advertising agencies wanting to learn how location-based ads can be made effective.
- Sponsors seeking ways to make local market ads more effective.
- Newspapers who want new ad opportunities in local markets.
- App Developers for mobile phones trying to adapt to future changes in The Wireless Internet.
- Online merchants seeking to reach new customers.
- Media companies wanting to learn how The Wireless Internet will change media consumption.


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