In judging the take-up of different mobile services, it is also important to keep in mind that, as Agarwal notes, “There may be better alternatives to reach that content.” Consumers are aware that “you can reach the mobile web and mobile video, but they cost money, and consumers have to make trade-offs am I willing to pay a little extra for that anytime, anywhere access, or would I rather just wait? Given that the alternatives here in the U.S. are pretty strong, mobile really ends up being more of an extension of those traditional media than a substitute.” This is not to suggest that mobile has less of a value to consumers in the U.S., rather it is a growing complement that allows consumers to access content on their mobile in addition to checking it on their PCs. Given the history of the Internet and telecom in the U.S., mobile access has emerged here as a complementary means of access, while it was the primary means of access in Japan.
Innovation and Investment
Wireless carriers in the U.S. have been deploying higher-speed networks over the past few years, providing faster download and upload speeds to customers. Although dealing with a larger geography than individual Western European countries, Korea, or Japan, American companies currently offer next generation technologies that deliver average speeds ranging from 400-700 kbps, bursting up to 2 Mbps, in markets covering more than 210 million Americans. They continue to spend more than $20 billion annually in upgrading their networks, and have spent billions more acquiring additional spectrum to deliver more advanced applications to a growing number of consumers.
This is not to say providers and customers will or should take anything for granted. Everyone is interested in pushing the boundaries improving technologies, finding products and services that meet or define new needs, and satisfying customers. This is true both in the U.S. and abroad. As Christopher Guttman-McCabe, Vice President, Regulatory Affairs, CTIA-The Wireless Association®, observes, “The ways in which people engage with the mobile ecosystem have evolved over 20 years, with market forces driving end-to-end competition in the U.S. Tampering with the existing business model in the U.S. isn’t necessary, and might produce entirely unanticipated and undesirable results. We shouldn’t assume that the differences existing between one nation and another, or one model and another, means anything other than that we are different. Both the U.S. and European systems have delivered competitive products and services, but the U.S. model is certainly allowing American consumers to talk a lot more for a lot less than those in any other developed country. With the number of subscribers here approaching one quarter of a billion, it’s obvious wireless is an increasingly popular part of American life.”
