Reality Check: An industry in transition: Learning how to navigate the wireless ecosystem

Editor’s Note: Welcome to our weekly Reality Check column. We’ve gathered a group of visionaries and veterans in the mobile industry to give their insights into the marketplace.
2010 will definitely be a year of significant innovation in the wireless industry, and the buzz surrounding wireless at the Consumer Electronics Show (CES) in Las Vegas was palpable. Google’s introduction of its own smart device and Apple’s subsequent announcement of its iPad are just a couple examples of significant developments in the industry in January … and we are just getting started!
For the year, smart devices will continue to be an ongoing story, with new products and companies entering the space at a frenetic pace. Nearly one in every three U.S. adults who own mobile phones has either a smartphone or quick messaging device – a phone with a QWERTY keyboard and/or a touchscreen, but runs on a proprietary software platform rather than a smartphone OS – up from one in five just one year ago. Furthermore, the introduction of new “activatible” devices like netbooks, e-readers, televisions, and other consumer electronics products substantially expands the wireless ecosystem. Ultimately we envision the creation of a customized intelligent network of devices that delivers relevant information in a seamless and real-time manner – an incredibly exciting proposition that is closer to reality than most people think.
Specifically, we are seeing the lines between cellphones, smartphones, netbooks and broader consumer electronics products blur together. Today, it’s not just traditional wireless device manufacturers; it’s also IT manufacturers, such as Dell and Acer dipping their toes into the wireless netbook and smartphone category. We see Amazon and Sony who are launching new e-readers. We’ve witnessed companies like LG introducing netbooks. We see Nokia launching Ovi and its broad array of services. We’ve experienced the explosion of downloadable applications since the launch of the iPhone. Overall, the speed of innovation is dizzying and opportunities in the wireless space are expansive. What is very clear to a company like Brightstar, is that speed of innovation, an increase in the type and number of wireless devices and more new entries means an even more complicated supply chain that require specialized supply chain companies to help participants successfully navigate the wireless ecosystem.
Ultimately, I would venture to say that there is no other piece of equipment that is more important to us today than our wireless device. Our wireless devices carry our addresses, music, e-mail contact information and video content, among additional multimedia content. Because of this, operators are looking to broaden their data-driven device portfolios including smartphones and netbooks. These devices will be more broadly available across wireless operators rather than exclusively to one, according to Barclays Capital analysts Jeff Kvaal and Amir Rozwadowski. With increasing competition between devices, executives of these hardware manufacturers are looking at the characteristics of what makes a specific manufacturer a game-changing company in the wireless industry. And, in the not-too-distant-future, as we activate more products and create our own smart networks, we will become just as dependent on that network for our day-to-day activities as we are on our current devices.
The curious thing about innovation is that it’s self-feeding. Innovation accelerates innovation. With increased consumer demand for instant, ubiquitous information, manufacturers are competing to deliver instant knowledge, with a faster processor, on the latest device. In turn, I see top CEOs and entrepreneurs in the wireless space constantly thinking of new products, applications, and services that will keep consumers ubiquitously connected.
Finally, particularly during these tough economic times, companies also need to optimize their supply chains to minimize cost and reduce time to market. Network operators and retailers around the world are outsourcing parts or their supply chain to third-party experts to reduce their costs, increase their profitability, and to ensure they turn their supply chain into a competitive advantage. In my next article, I’ll focus on how all of the players in the wireless ecosystem – the operators, the manufacturers and the retailers – are focusing on making their supply chain the best it can be.
Marcelo Claure is the chairman, president and CEO of Brightstar Corp., a leading global services company providing innovative distribution and supply chain solutions to the wireless industry. Brightstar offers leading wireless and IT manufacturers the largest global reach, enabling the right product to be in the right place, at the right time. Brightstar’s supply chain solutions are used by the world’s top network operators and retailers to improve financial results, increase EBITDA and turn their supply chains into a competitive advantage. For more information on Brightstar, please visit www.brightstarcorp.com.