Sunday, May 11, 2008
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Largent to Mossberg...Wish you were here in San Francisco

If Mr. Mossberg were here at CTIA’s Wireless I.T. & Entertainment 2007® show in San Francisco, he’d see what the wireless world really looks like today.  Instead of writing about the old 2G world,  he’d see firsthand how we have moved into the 3G broadband world, where options open up for consumers.

He would see that there are more than 600 different wireless devices available to consumers in the U.S. today, from carriers, manufacturers, and third-party retailers.  Wireless customers in the U.S. can exchange voice, text and photo messages, can download or watch streaming videos and listen to radio programs. There are more than 150 wireless companies providing service across the country, from nationwide to regional and local providers.  And dozens more companies have entered and exited the marketplace, driven by entrepreneurial vision and ambition to make their mark. If those things don’t define the meaning of a free market, what does?

The wireless marketplace is not static or stodgy.  Wireless service providers are not the soviet ministries of old – they are dynamic players in a competitive market, working with partners to ensure that devices deliver what consumers expect, without bringing down cell sites.  They are not dumb pipes, trying to substitute for the competitive marketplace – they are marketplace players.  They are many things at once, but what they are today is not what they will necessarily be tomorrow.  Maybe in the digital world, wireless and computing are evolving towards each other.  If so, it’s because wireless devices are offering consumers more choices and capabilities, not because the computer industry offers a better market structure.

Handset subsidies have lowered the barriers to adopting wireless service for more than 240 million Americans.  Fifteen percent of customers use prepaid or pay-as-you-go service plans that don’t involve contracts.  That’s different from many other countries, true enough, but wireless service and wireless handsets cost American consumers a lot less than they cost consumers in most other countries.  American wireless consumers pay less per minute and use more minutes than consumers in every European country – that’s a good equation for American consumers.  And there are more network operators providing more choices for consumers in the U.S. than in most other developed countries in the world.

That’s where the U.S. wireless industry is today, but that’s not where we will be tomorrow.  We won’t stop pushing the boundaries to give consumers more and better products and services.  It’s unfortunate that Mr. Mossberg has fallen for the hollow argument that the U.S. is behind in wireless.  In fact, wireless in the U.S. is dynamic, innovative, and working to deliver for consumers.

Comments (Comment Moderation is enabled. Your comment will not appear until approved.)
Sorry Steve, Moss is right. The wireless industry today is held hostage by the big 4, which has made us the laughing stock of the world. They release phones around the world months, if not years, ahead of us. We are behind the times because of AT&T, Verizon, Sprint, & T-Mobile. It is not made for consumers, but for corporations.
# Posted By raydog | 10/22/07 11:21 PM
Thanks, Raydog. I'd look at the other side of the coin however. We have among the lowest prices in the world, offer consumers roughly 700 different kinds of handsets and have one of the least concentrated wireless provider marketplaces anywhere on the globe. On another note, check out what Steve Ballmer of Microsoft just showcased on our keynote stage...really amazing stuff. U.S. is doing just fine. Thanks!
# Posted By Joe Farren | 10/23/07 2:00 PM
I am much more optimistic about the future of mobile. The US carriers are working hard to make changes and offer services that are both fun and useful. We have shared data from our Teen Lab with US carriers and they are focused on delivering for the youth market. It is slower than we'd like? Probably. But good things are happening. Since I couldn't be there, I am glad to hear there is enthusiasm at the show!
# Posted By Jen Carole | 10/23/07 2:03 PM
The Big 4 have the mobile future in gridlock. Shortcode rates are thru the roof. The time it takes to provision one is ridiculous. The rules to keep one are burdensome....Low rates? My mobile bill is over 300$ per month. Can you say datadownloads? u think they are cheap? Move to Africa...same service...1/4 the price.
Try writing sms to wap services, try writing java to handset....as a matter fact try creating anything for a US phone...If Verizon doesnt lock you in a cage...T Mobile will shackle you to a grindstone...and Sprint....well they are Sprint....the also ran....fortunately ATT does realize that its in their interest to help and they actually are the best of the lot IMHO ...but cant be said of any of the others...if you think we have healthy competition in the mobile space you are not on the same planet as I am....
# Posted By mobileentreprenuer | 10/24/07 10:01 PM
Market, Innovation Drive U.S. Wireless

"Gridlock" is certainly not what's on display out here in San Francisco. In fact the keynote speech today was by Sprint's Atish Gude and he spent the better part of an hour talking about their WiMax product (Xohm) and Sprint's overall commitment to open platforms. More pipes, more products, more access. As for the cost of wireless service, I can only repeat what the facts are...the price of a U.S. wireless minute is lower than Europe (by far) and indeed is one of the lowest in the entire world. As for Africa, the price of a minute in the U.S is about 4 cents and in South Africa it's about 18 cents. On top of that, per capita income in Africa is about 90% lower than in the U.S. But don't take my word for it, it's a stat from Merrill Lynch. Thanks for your input!
# Posted By Joe Farren | 10/25/07 5:33 PM
these rebuttals are more frustrating than the original relase - there are so many examples of why Mossberg is right on that is hard to pick where to start. Even after you get past the custom flavors of the wireless standards and handsets, you have to spend an unreal lead time approaching the big 4 to take a new application live. All eyes on Android, let's get the party started!
# Posted By getreal | 11/19/07 12:44 PM


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