WiFi Hotspots to Cost Wireless Carriers $12B 222
j.e. writes "Commercial WiFi hotspots and open WiFi networks will take about $12 billion out of wireless carrier revenue pie, says Starategy Analytics. With high prices of mobile data services from wireless carriers, the users are more prone to use a cheap WiFi connection, if one is available."
Statistics Bullshit (Score:5, Insightful)
Re:In other news (Score:5, Insightful)
An analogy (Score:5, Insightful)
"With all these free movies on TV people won't go to the movies."
Having said that, cellphone service is nowhere near what it should be in terms of reliability and quality. How many of the main carriers allow you to do what you want with your phone (e.g. bluetooth restrictions in many phones) and your service (forward messages & voicemail via email, etc)?
Damien
Just so you know.. (Score:3, Insightful)
Boo Hoo (Score:5, Insightful)
This is step 1 (Score:5, Insightful)
Hey, it worked for the RIAA!!!
I thought the Airwaves were a Public Trust? (Score:3, Insightful)
wireless overpriced (Score:5, Insightful)
Poster forgot some words, it should read:
With the artificially inflated exorbitantly high prices of mobile data services from wireless carriers, the users are more prone to use a cheap WiFi connection, if one is available.
No sympathy for wireless carriers here, now they get to suffer for their own bad pricing plans...
headline should read... (Score:5, Insightful)
Note: you can't lose what you don't yet have.
Interesting fact: you are not entitled to a profit. If your business model sucks, or if your product is too costly, it will fail. See also: airphones. Remember them? All gone now, because using cell phones (which everyone already has) before and after the flight is good enough.
Re:In other news (Score:1, Insightful)
Why buy when you can WiFi? (Score:3, Insightful)
Besides it doesn't COST you $12B when you haven't spent $12B. duh!
I know. run-on. bad punctuation, but hey, you didn't pay to read this!
Re:In other news (Score:4, Insightful)
Moderate Insightful (Score:5, Insightful)
Re:In other news (Score:5, Insightful)
Misleading title (Score:5, Insightful)
Not making as much revenue as predicted is not a "cost".
They have this backwards. (Score:3, Insightful)
Aw jeez, it's the RIAA all over again (Score:5, Insightful)
I wish wireless carriers and others would grow up and quit whining when people figure out that their products and services can be had for free.
Re:In other news (Score:4, Insightful)
That they dont' tell you also, is that data used to be part of my Sprint Plan. Someone they removed it and now want to charge for data; I used 14.4 on Amtrack with my laptop to sync email in 2000; now they have fast speed and they want much more $$$.
Any serious business user is going to buy a business grade service. Meaning they are using it to make $$$ or the inverse, without it they loss sales, jobs, etc. Everything one else doesn't have a real need and yes, they are NOT going to pay huge sums for it.
These are just market forces in action... (Score:2, Insightful)
Take the T-Mobile hotspot, for example. If you plan on using it a lot (and that's a lot of time spent at Starbucks), you can get away with spending a mere $29.99 a month. If you're not so sure, the price jumps to $39.00 a month, but you're free to quit. The price will jump even higher if you move to a per day or per hour plan.
Now take many local public venues (e.g. libraries, coffee houses, etc.) Many of these places will offer free access for their patrons. We have become quite spoiled by these free hotspots (I know I have, and I will prefer one of these places any time).
If there are more and more of these public access points offered, we will find more and more that, because of competition and free market forces, the price of WiFi access will plummit, possibly to near-zero. We (the consumer) just need to keep at it. If the technology is not profitable for businesses, wifi may become relegated to the realm of "promotional offer" or "advertising gimmick."
"WiFi Hotspots to Save Wireless Users $12B" (Score:3, Insightful)
It's all a matter of perspective.
The casino gaming industry talks about its "earnings", not "winnings", or heaven forbid, its customers' "losses".
Re:Moderate Insightful (Score:2, Insightful)
The wireless companies may or may not be charging too much--I couldn't guess at what the overhead is to start up the network. But the real problem is that we have been taught a psychology that companies have any rights at all. If a company does not provide utility, then it should fail in the market. I've made this comment before about the music labels. Through PR and the courts they are trying to prevent obsolescence. If artists can get paid and music is free, then what exactly is wrong with that for the consumer? Will music get worse than it is now? Will concerts end? No, no and no. Companies have to provide a service. They can't say that citizens finding cheaper and better options is unlawful.
But, I suspect the company to push for legislation to solve the issue, rather than face an actual open marketplace.
Re:In other news (Score:3, Insightful)