The fact that the telecom sector, including the mobile industry, is shivering in the cold right now after months of basking in the sun of favor from the financial community is certainly not breaking news. It seems no category-broadband wireless, mobile Internet, manufacturers, carriers, CDMA proponents, GSM advocates-is sheltered from plummeting share prices, credit downgrades, staff layoffs, less-than-brilliant initial public offerings or general analyst criticisms.
So did we bring it on ourselves? Is the current downturn in the mobile industry a result of overhyping technology, spending too much money too quickly and general carelessness in business plans? Perhaps it is part of a larger underlying general recession, at least for U.S.-based companies. Or perhaps wireless companies are unfairly shouldering the fallout from the dot-com blunders.
Some industry professionals are quick to predict this is just a short-term problem and that things will pick up again in a few months. But each day, another company releases less-than-stellar results, another warning appears about delays in third-generation (3G) technology rollouts and stock market indexes continue to slide.
Even during tough times, the world’s largest GSM-focused exhibition and congress put on a happy face. At the 3GSM World Congress in Cannes, France, in February, vendors spent a lot of money, traffic was heavy and everyone avoided watching CNN’s market reports broadcast outside the exhibition halls.
Company executives at the show were quick to note it is important not to overhype wireless technology or predict hasty mobile Internet service timeframes. But presentations from Sony to Hewlett-Packard showed people doing amazing things with mobile devices, like beaming video from a vacation to a friend across the globe in real time and having a rental car suddenly appear when your car breaks down. Sometimes it is easier to announce a plan than actually implement it.
But wireless companies are in a tough spot. If they do not showcase what the technology can do, no one will buy it. It is tough to walk a tightrope between marketing a potentially life-changing service and maintaining practical boundaries.
I think it is safe to say it will probably get worse before it gets better. But the good news is that people around the world rely on their cellular phones. Demand is high, subscriber numbers continue to increase and mobile phones have become a part of daily life. And future technology has the potential to push demand even further and reap profits for everyone involved in the process.
The keys to success lie in how companies move forward. The focus right now should be on tightening budgets, streamlining processes and producing the best technology or service as efficiently as possible. High-quality customer service is essential for maintaining current clients, along with looking forward to where future revenues will be.
The mobile industry is filled with innovation and bright, hard-working, dedicated people. New companies with niche products and services are still elbowing their way into the fray. And established companies have the foundations in place to ride out the storm. The future is still filled with promise, perhaps in conjunction with equal doses of caution and pragmatism.
