Newly named Leader of the Pack FCC Chairman Michael Powell got it right last week when he declared that wireless is the killer app.
He’s not alone. Each week, there are hundreds of new companies that believe the same thing and are trying to figure out a way to enter the wireless market-specifically, the wireless Internet market. Each one of these feisty pups knows they can make a living, even if they only can gobble a few scraps dropped from the wireless table.
In short, it’s a dogfight for these less-established companies to gain the attention of major wireless carriers.
The problem is that wireless carriers themselves can become immobile quickly from too many choices. How can a carrier in a fierce competitive situation choose the best application/browser/standard/platform/software et al among the glut of companies out there shouting for attention?
Carriers are looking for anything that will set the upstart company apart and these smaller companies are getting smart to that game fast. Sound business plans and a cool product and/or service are a given. But beyond that, these upstart companies are looking for anything that gives them an edge. A top management team can be exploited. The CEO of the upstart company must have connections. What was his last job? Who did he used to work with? In addition, who is providing the financial backing? A company with a strong reputation and deep pockets can give the upstart the flexibility to withstand the breakneck pace of this industry.
An aggressive marketing department is a must in order to shout above all the other noise. Time to market is critical. The wireless industry depends on people who can’t wait to get back to the home base to be connected, whether they are business users or mass-market customers. Speed is more than just a connection time. It is a weapon.
Did I mention connections?
And yet, a company with a marquee-name CEO, a desirable service and substantial funding can still run into some trouble. Witness InfoSpace Inc. The company recently announced respected CEO Arun Sarin would take a less prominent position with the company, and analysts were quick to note that WAP has not taken off yet in the United states, which hurt the wireless content and tool supplier. The company’s stock jumped a bit last week on news it would announce an improved financial outlook this week. The problem is, however, that jump pushed the company’s stock up to $5 a share. At one point it traded at $138 a share.
Because the other intangible in this race is luck. And luck changes quickly.
