| Abstract |
The
United States faces a double edged sword with the next generation of wireless
data services. Consumers enjoy widespread competition from six major nationwide
wireless operators, and a variety of standards that offer a wide range of
data and multimedia capabilities. This competition in price and features
has the potential for bringing more customer value and a faster pace of
innovation. However, this competitive environment also results in a problematic
lack of critical mass for emerging mobile-to-mobile services. As different
vendors implement their features using different standards and progress
at a different pace, interoperability problems becomes a major hindrance
in gaining the "network effect" crucial to any widespread adoption of services.
Operators have taken different approaches for creating their next generation
service offerings. Some have borrowed heavily from experience in forward-looking
markets such as Japan's i-mode, while others have stuck to providing a gateway
to popular and well-understood Internet content such as AOL Instant Messenger
or MSN Hotmail. Almost all are jostling to find the right positioning for
services and tariffs for the new generation of camera-capable, PDA-enabled
and color screen phones.
The advent of MVNO (Mobile Virtual Network Operators)
makes the landscape more competitive, as these firms depend solely on pioneering
new services beyond those from traditional subscriber-based voice operators.
At the same time, Wi-Fi wireless LAN hotspots placed in well trafficked
areas have become increasingly common and economical alternative to expensive
3G deployments.
It is crucial to understand the nature of consumer desires
and willingness to adopt these services as operators prepare to bet multibillion
dollar wagers on the 3G betting table. This paper will analyze the merits
and strategies of each of these approaches and evaluate the current wireless
data offerings in the United States, and what can be learned from consumer
experiences in the US and other markets.
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