Apparently, iPhones and Android smart phones are heavy data users. Go figure! The popular smart phones have been taking over the mobile world in the last few years, consuming over 5,000% of the data usage than it was before the iPhone was released back in 2007. Now, that’s not to say that the iPhone has been the only reason for the increase, but it’s been the majority.
Mobile carriers like AT&T are helped a great deal when a manufacturer creates a great device. They get more customers, simply because the device is offered on their network (which is exactly the case of the iPhone). What they’re not quite getting out to the public is how much COST comes their way from offering those devices. With increased bandwidth, comes increased investment in network infrastructure. The network has to be able to supply the demand coming at them. To do this, they invest billions of dollars into communications equipment, tower upgrades, back-hauls, cabling, servers and computing hardware, and of course the technicians and employees that are making it all possible.
It seams now, however, that some mobile carriers aren’t liking the increase in cost that’s falling on their wallets. Companies such as France Telecom SA, Telecom Italia SpA and Vodafone Group Plc want the manufacturers to help out with the billions of dollars that their devices are costing them! Seams odd that the devices that allowed them to expand, and become more successful than they previously were, wasn’t payment enough already. According to Bloomberg, those huge increases in business… just aren’t enough for them.
Here’s how I see it:
When a store runs out of stock too fast, and has to purchase more goods to keep up with the pace, they buy more goods. Now let’s say one of your suppliers makes something really special. It’s the best thing anybody has ever seen, and your store is the only one that carries it. People start making mad dashes to your store over the next 6 months or so, and you realize that there is no way you can keep up with the demand without expanding. So you take all your merchandise, and move to a new building. A building three times the size of the old one. You’re now capable of keeping up with your customers’ demand once again.
A year goes by, and you are starting to notice the same types of issues. The manufacturer of this “super special product” has come out with a new version. This one is twice as good as the last version. Again, like clockwork, your store floods with people trying to buy this thing, and you again have a hard time keeping up. It’s time to open a second store.
While all of this expanding is going on with your business, you are making more money. True, you are spending more, but that is how the game works. Everybody goes through it. Now… tell that manufacturer who created this super cool product that you’ve been selling, (and building your business model off of) that they need to pay you some money to help cover your cost of expansion. Tell them that, because they made such a great product, and gained you business as it’s exclusive carrier, that they need to help you financially to cover the cost of making that second store.
Doesn’t sound fair does it?
That’s what’s happening over in Europe right now though. As quoted in Bloomberg’s article:
“Service providers are flooding networks with no incentive” to cut costs, France Telecom Chief Executive Officer Stephane Richard said last month. “It’s necessary to put in place a system of payments by service providers as a function of their use.”
She has a point. Apple and Google have absolutely no incentives to cut costs of mobile web. There is a pretty good reason for that: They aren’t supplying mobile web, only devices that can access it! It’s a pain in the ass to have to expand from having too many customers, isn’t it?
What do you think? Should Apple and Google be required to help cover the costs of their carriers network expansions? iPhone and Android Smart Phones use way more data than any other. Android uses the most, but not by much. You can READ THE FULL STORY on this matter from Bloomberg.com It sounds ridiculous to me… but perhaps they have a point?
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