Mobile technology has come a long way since Motorola demonstrated the first cellular call in 1973. The first commercially available devices retailed at the low cost of $3,500 — more than four times the cost of the 64GB iPhone 5s.
Flash forward to 4G. Networks are now struggling to overcome a new problem: dumb pipe syndrome. Operators such as AT&T have watched their SMS, Locker, and Radio services lose out to third-party apps such as WhatsApp, iCloud, and Spotify. Now, they’re wondering how they can adjust to a playing field where core network services like voice and text are being overtaken by external apps.
Why it’s happening and what to do next
What operators should remember is that, in reality, they aren’t in competition with app developers. Operators running a network have different DNA than software companies developing apps. So what can operators do to add value to their product that will continue to draw in customers?
- Provide faster bandwidth.
nearly 40 percent
- Listen to consumer needs.
eliminated
- Get out of the way.
Moving forward
Operators that embrace the best apps can benefit in three ways:
- They differentiate their companies by including apps that users already know and like, making them more relevant to smartphone users who are tired of built-in services.
- They can increase revenue by having app developers adopt operator billing.
- They will get new products to market faster by including the most popular offerings, instead of developing their own services.
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