The end of the world as we know it
Posted by Chris Tippie
So several folks have asked me why I find the release of the iPhone (and iPod Touch) SDK’s such an earth shattering event. I admit, I love to go a little Oliver Stone at times but let me walk you through a scenario. The iPhone (and iPod Touch) sport 802.11b and g wireless radios. The iPhone also has a true cellular wireless radio that works on the AT&T network. Okay, so everyone knows that. Imagine, if you will, that you took the iPhone SDK and wrote a relative simple application that said, use the 802.11b/g connection to place all calls over the wifi using say something like Skype instead of using the AT&T network. Ever fire up your laptop in Manhattan or Chicago? There is literally a mosaic of broadcasting wireless networks at any one time. How many more aren’t broadcasting? You can usually find one that is open. Additionally, how often do you use your wireless phone when you are at the office or at home - relatively stationary with a known wifi network around? So, this little application would essentially allow you to circumvent the wireless carriers for your phone calls by piggybacking on Skype and wifi technology. No more minutes. No more plans. Essentially, it would render the wireless networks such as Verizon and AT&T obsolete in most densely populated areas - which is where the vast bulk of paid for cell minutes are consumed. Now, imagine when the “free the wifi networks” movement takes place. Effectively, we will have created our own little cellular network.
What to do if you are Verizon or AT&T? How do you stop this? You know the second that SDK hits someone is going to write the app. I’ll tell you what you do - you move to an unlimited plan model. Hey, you’re paying for the access - why worry about minutes. It is all you can talk. Just give us $99/month and no worries. Yep, that’s what they did. When did they do it? February 19th. Just over two weeks before apple released the SDK (March 6th). Need more proof? Remember, people were thinking the SDK was coming in February. Two days after that article was published, Verizon went unlimited. The rest of the industry soon followed.
So, what did they buy themselves? Time. The app will be written. It won’t need Apple approval as PWNAGE was released yesterday. Sooner or later, people will tire of the $99/month paid to the wireless carriers and some subset of the base will move. But life will continue on for a good chunk of the wireless market. Here’s the thing though, the wireless carriers who have moved to the unlimited model are taking a haircut - a very serious haircut because effectively, they have elminated any positive revenue potential from the power user base. My cell phone bill routinely ran $250. Not any more. Same service and I save $151. How’d you like that to hit your mid year financials? This is just one example of how an SDK for a wireless enabled device can effectively disrupt even relatively new industries such as the wireless carriers. Wonder what Android might hold in store…
Other posts by Chris Tippie
June 9th, 2008 at 3:05 pm
[...] I ranted about a month or so ago, the VOIP iPhone app was finally built. The new iCall app for the iPhone does it. [...]