Opportunity knocks

Editor’s Note: This article is an excerpt from RCR Wireless News’ May Special Edition, “Enabling the Mobile Revolution: Mobile Chips, Devices and Accessories.” The 80-page special edition is available here.
If I have uncovered anything while putting together this issue it is that mobile devices remain the predominate driver of the mobile industry. Sure, new technologies and aggressive rate plans are key components, but it looks to me that we are now at a stage where from a consumer point of view, any decision related to purchasing of mobile services has come down to which device do people want.
And I think this is a good thing. The wireless industry has never done a good job selling consumers on technology. Whether it was the move from analog to digital or from 2G to 3G, consumers were never going to make the switch just because some engineer with a pocket protector full of pens used charts and graphs to tout the advancements of new technology.
This also applies to network coverage, as for the most part every carrier has basically the same coverage, give or take a few million pops. And even in those markets blanketed with a carrier’s network coverage color of choice, I think most people know that those coverage maps need to be taken with a grain of salt.
In the same way, while rate plans were indeed a big driver for the increased adoption of mobile service during the first 20 or so years of the industry, we have come to a point where for the most part carriers are all offering basically the same price for the same plans, give or take a few bucks. There has definitely been some more aggressive moves recently in the no-contract space, but even that has almost flattened around a few key price points.
So that leaves the mobile device as the true differentiator in the market and really the only selling point most carriers can lean on.
AT&T Mobility has shown by hooking its wagon to Apple that it can continue to drive customer growth despite “cough, cough” questions “cough, cough” about its network coverage caused by those same devices.
Verizon Wireless, which has been the most successful carrier in touting its network advantages, is throwing its considerable weight behind Google Inc.’s Android operating system, using devices powered by the OS on its marketing front against the AT&T Mobility/Apple juggernaut.
Sprint Nextel, after a failed attempt to revive its lagging sales to Palm’s WebOS train, has along with T-Mobile USA also latched onto the Android express in their attempts to staunch the flow of customers to their bigger rivals.
This reliance also has carriers pushing harder for exclusivity deals that have customers confused (why can’t I get an iPhone from Verizon?) and smaller carriers fuming (why can’t we get any of the hottest smartphones?).
All of this should portend to new opportunities for handset makers looking to garner more control of their products in a U.S. market that remains dominated by carriers. Hit the right combination of form factor, user interface and feature set that attracts the eyes of consumers and carriers will be sure to come knocking.