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Where is the innovation?

As likely winners begin to emerge in the re-auction of NextWave Telecom Inc.’s PCS licenses, it looks like these permits will be used in large part by major wireless players to shore up more spectrum, either to meet capacity needs today or for third-generation applications down the road.

The C-block auction, which started out exclusively for small businesses, didn’t really work as the government envisioned, where small innovative companies would bring new services to market and be competitive with deep-pocketed firms. I supported the move to let large wireless companies in the auction to see what innovations they could bring to the marketplace.

I hope we see some some day. Today, there isn’t much difference between carrier A, B, C, D and E.

Yet every day, something comes across my desk announcing a new service or application that could benefit wireless users. Why don’t carriers embrace these new apps. Are they all bad? Do none of them work? Or is it that the wireless industry has become complacent?

Yes, Sprint PCS has 1 million wireless Web users (sort of). And AT&T has its PocketNet service. But generally, smaller companies are the ones taking chances. Leap bought the MyAlladin.com mobile location-based content portal and Qwest offers simultaneous service on your home phone and your cell phone. And some innovations the big guys brag about, like flat-rate calling plans, were initially adopted by Nextel Communications Inc.

At one time, I thought we would all have virtual assistants. Orange bought the Wildfire virtual assistance service, but you haven’t heard much from U.S. carriers. Don’t people want and/or need these services? Are there big problems with these applications, or are they left on the shelf because carriers want to stay where it is safe, instead of venturing into the unknown?

Companies with unified messaging solutions and location-based services abound, but carriers seem stuck in trials. The thing I’ve always admired about Korean operators is they never seem to bother with too much beta testing. Instead, they roll the dice, launch service and work out the kinks along the way, or let the service flop if customers don’t embrace it.

Are carriers stifled from offering anything new because they fear they must only choose the best solution?

Doesn’t anyone want to break out of the mold?

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