The wireless telecom industry is very intriguing to me.  I’ve written about AT&T and Verizon before, and more specifically about the battle for subscribers and the expansion of wireless data network infrastructure.

AT&T has been growing fairly extensively over the last several years primarily due to the cult like popularity of the iPhone, which AT&T has had exclusive rights to from the initial iPhone release.

Verizon is on the verge of releasing the “Droid” Android phone which I hear is garnering great pre-release reviews.

As I’ve mentioned in my previous posts, wireless providers are running out of marketing gimmicks to attract new subscribers, at least as it pertains to phone costs.  Carriers are practically giving away high tech and very capable smart phones a la the Blackberry and make their money on the monthly plans.  So with the cost of the hardware already at zero, the only other front to wage war is on the plans themselves.

This is where Verizon, specifically, is starting to reveal it’s elitist mentality.

In an article over at The Wall Street Journal, Verizon CEO Ivan Seidenberg said that while T-Mobile rolled out new low cost plans over the last weekend, his company had no intentions of doing so.

Verizon does have great coverage, and for those who need to be connected anytime all the time, they may be willing to pay a premium for the service.  The average Joe I suspect, will still go with the low cost provider.  Coverage at the big carriers is so widespread and evolving so quickly that service and coverage are starting to come to parity.  With that in mind, the last competitive advantage is coming down to price.

And Verizon is losing.

To me, it seems a bit arrogant that Verizon doesn’t want to respond to T-Mobile’s new pricing plans.  They’re losing the market to AT&T through the iPhone popularity, and while the Droid may be great, it’s going to come at a hefty price.

And I don’t mean for the phone.

Technology AT&T, cell phone, connectivity, iPhone, Verizon, wireless plan

I stumbled upon a new service from the end-all-be-all Google that may be the next step in the evolution of mobile communication.

Effectively, Google Voice merges traditional cell phone and land line service in to voice over IP (VOIP) data streams, and then back into cell phone or land line technology, and it sounds pretty cool.

Once you are invited to use the service, you select a Google Voice number which could have an area code from anywhere in the United States.  You can then set up Google Voice to ring any phone you want when someone dials that number.  For instance, when you dial my Google Voice phone number, I can set the program up to ring my cell phone, office phone or home phone… but what’s really cool is that I can set it up to ring all three at the same time.

So I could be at the office and leave the cell phone at home and you’d still be able to reach me.

Some other impressive features are the transcribed voice mail (Google Voice will email you a transcript of the voice mail), the ability to play voice mail back through a web interface, and you can even screen or block calls.  Google will mark annoying telemarketers as Spam, much like they handle spam in Gmail.

The service is still in its infancy, and you still have to be invited, much like Gmail originally.  However, I suspect that Google Voice will morph into a service that will compete with Skype and give your cell phone company a run for its money.  What’s neat about Google Voice is that you only need an Internet connection to use it, meaning you’d only need a data plan on your smart phone, and not necessarily a voice plan…

If you’ve got experience using Google Voice, I’d love to hear about it.

More information here.

Technology cell phone, Google Voice, Technology

It was bound to happen (again). Today Verizon Wireless revealed new plans to offer a flat-rate unlimited calling plan. They say it is an effort to attract high end customers, which may be true, but I see it as a commoditization of the wireless industry.

The plan will cost $99 per month and offer up unlimited calling to anyone in the United States. Interestingly enough, AT&T trumped Verizon by announcing a similar deal for $0.99 per month more, but also eliminating any additional roaming charges.

It is clear to me that cell phones are becoming a commodity just like the old fashion predecessor, the land line, and that the economy of scale and competition is going to force prices down.

The revenue is going to shift from voice usage to data usage, which is good news for guys like me who just want voice capability.

“Voice is the foundation of our business, and will be an integral part of our offer,” said Mike Lanman, chief marketing officer for Verizon Wireless. “Data is clearly emerging as an increasing contributor…to our revenue stream.” -Source

I think this is a telling sign of how a free market will drive down prices. I started to see a glimpse of this when Verizon offered me a lower rate on an unpublicized plan that more closely matches my usage. They didn’t want me to leave the store and head off to a competitor, so they knocked $10 off my bill just to keep me happy…

Cell phone service will only get cheaper…

Business, Technology cell phone, free market, Technology, Verizon Wireless