Current Insight Community Cases

The Importance Of Skilled Immigrants To The American Economy

Help A New Kind of Music Label Revolutionize The Industry

Mandates To Buy American Should Be More Carefully Considered

Navigating The New Business World After This Recession

How To Prevent Copyright From Interfering With Innovation

CwF + RtB

-- get "looooots of t-shirts"

Brought to you by Floor64 and the Techdirt crew.

stories about: "t-mobile"
Wireless

Wireless

by IC Expert,
Carlo Longino


Filed Under:
germany, mobile, skype

Companies:
t-mobile



T-Mobile Germany Tries The Jedi Mind Trick With Mobile Skype

from the no-it-isn't-yes-it-is-okay-it-is dept

The Skype app for the iPhone proved to be an instant hit, topping App Store download charts around the world, including Germany, where T-Mobile reminded its customers that using Skype, or any other VoIP app, could get them kicked off its network. The operator now says it's "looking at different ways of dealing with VoIP", perhaps including offering some special plan where users would have to pay some fee to use VoIP. It also says it's not actively blocking any voice apps, although when it begins selling the Nokia N97 smartphone later this year, the Skype application that's normally pre-installed on the device will be stripped out. T-Mobile's justification for removing the app is great: it's not because they don't want people undermining voice revenues by using Skype, but because "by not putting Skype on, subscribers could choose from a number of VoIP apps, and not be limited to just one." That's as opposed to having Skype pre-installed, and customers being able to download and install any other VoIP app alongside it. Only in the world of mobile operators does removing choices for customers actually increase customer choice.

Carlo Longino is an expert at the Insight Community. To get insight and analysis from Carlo Longino and other experts on challenges your company faces, click here.

12 Comments | Leave a Comment..

 
Wireless

Wireless

by Mike Masnick


Filed Under:
sms, unlimited

Companies:
t-mobile



Customer Discovers T-Mobile's 'Unlimited' SMS Plan Not So Unlimited Thanks To $26,000 Bill

from the well-that-clears-that-up dept

It's getting rather ridiculous to keep seeing companies offer "unlimited" services, only to later find out that they're not unlimited at all. Yakko Warner points out that this just happened to one guy in Pennsylvania, who along with a friend, tried to beat the world record for most text messages in a month (182,000) by messaging each other back and forth. They figured they were fine, because they each had unlimited text messaging plans, but after one of them sent 140,000 messages, he received a bill for $26,000 and learned that, for T-Mobile, "unlimited" actually means 100,000, and those additional 40,000 messages cost quite a pretty penny. To T-Mobile's credit, the company has agreed to let the charge slide, but it makes you wonder why it has that cap in the first place if it's advertising the service as unlimited (and then ignoring the cap when people pass it). Why not actually remove the limit?

62 Comments | Leave a Comment..

 
Wireless

Wireless

by IC Expert,
Carlo Longino


Filed Under:
devices, sim cards

Companies:
t-mobile



T-Mobile's Embedded SIM Cards: Great For Connected Devices, Bad For Consumers?

from the what's-the-real-motivation? dept

T-Mobile got a lot of press last week when it announced a new, tiny embedded SIM card to be used in connected devices like "smart" electrical meters. The new SIM is much smaller than the traditional stamp-sized cards, and the company says it can withstand exposure to the elements, making it ideal for machine-to-machine communications with outdoor devices, or in connected consumer electronic devices. However, The Register has a slightly different take on the new SIM, wondering if it's really driven by a desire to do away with removable SIM cards -- meaning T-Mobile could sell devices that it would be extremely difficult, if not impossible, to use on other operators. As the site notes, the electronics on SIM cards are actually minuscule, but they're packaged in a bigger plastic housing to make them easier for people to handle. Theoretically, T-Mobile could use the new, smaller SIM in devices instead of today's standard SIMs, and encourage manufacturers to build them in such a way so that the tiny SIM was essentially impossible to remove. This might not make a lot of sense for handsets, but for other connected electronic devices, it could prove very attractive to operators, particularly if they're subsidizing those devices. It should be noted that this is purely speculation at this point, but given mobile operators' undying love of trying to lock in their customers, it wouldn't be too surprising to see it happen.

Carlo Longino is an expert at the Insight Community. To get insight and analysis from Carlo Longino and other experts on challenges your company faces, click here.

12 Comments | Leave a Comment..

 
Wireless

Wireless

by IC Expert,
Carlo Longino


Filed Under:
legality, mobile phones, prepaid wireless, unlocking

Companies:
t-mobile



T-Mobile Takes Out Some Handset Unlockers

from the the-only-confused-people-here-are-us dept

T-Mobile has won damages and an injunction (via Phone Scoop) against several companies that were taking bulk quantities of its prepaid handsets, unlocking them, and then reselling them. The company calls such activity "prepaid phone trafficking," when it's really just exploiting a poor business model. As in other suits filed by other operators, it sounds like T-Mobile based this one on copyright or trademark claims, saying "Consumers are harmed and may be misled about the source and origin of their mobile phones... Because the phones may still carry T-Mobile's brand, consumers may believe they are purchasing handsets manufactured for T-Mobile and covered by original warranties." That's slightly counter-intuitive: T-Mobile says the unlockers made their money by buying handsets locked to the operator, then unlocking them so they could charge a higher price when they were resold. According to T-Mobile, the phones carried a higher price, weren't sold in original packaging and didn't come with manuals. They were also, presumably, accompanied by advertising playing up the fact that they could be used on any operator's network. All of this combined would seem to make it pretty clear to buyers that they weren't buying an original, "official" T-Mobile product. So where's the basis for the confusion claims?

Carlo Longino is an expert at the Insight Community. To get insight and analysis from Carlo Longino and other experts on challenges your company faces, click here.

21 Comments | Leave a Comment..

 
Wireless

Wireless

by IC Expert,
Carlo Longino


Filed Under:
mobile, pricing, voice

Companies:
t-mobile



Price Ceiling For Mobile Voice Service Continues To Fall

from the a-good-kind-of-deflation dept

T-Mobile has announced that it's expanding its offer of a $50 per month unlimited voice service plan across the US, becoming the first of the country's four biggest operators to start to fall into line with the $50 voice ceiling. Given the constant price battles in the mobile industry, you'd expect the other major operators to follow T-Mobile, or lower the prices of their current unlimited offerings that also include text messages and data. But one interesting aspect of the T-Mobile plan is that it's only available to customers that have had T-Mobile accounts in good standing for at least 22 months, making it more of an effort to retain existing customers than attract new ones. This reflects the rapidly changing focus of the business from attracting new customers to also retaining current ones. One of the quandaries posed by US mobile operators was that, historically, they gave better deals and prices (especially on new handsets) to new customers than current ones, giving good customers an incentive to churn to a rival so they could get a free new device. This stance has changed over the last couple of years, as the industry standard contract length has grown from one to two years. Second, the T-Mobile offer reflects the company's standing in the market. Its quarterly net subscriber additions are falling, while the company's seeing a lot of competition at the low end of the market. This new plan is aimed at helping on both fronts.

Carlo Longino is an expert at the Insight Community. To get insight and analysis from Carlo Longino and other experts on challenges your company faces, click here.

12 Comments | Leave a Comment..

 
Wireless

Wireless

by Mike Masnick


Filed Under:
hack, voicemail

Companies:
at&t, t-mobile



AT&T And T-Mobile Pay Up For Not Being Truthful About Voicemail Hackability

from the caller-id-spoofing dept

Many mobile phones' voicemail systems have worked on the basis of checking the caller ID of the incoming caller -- and if it matched the number of the voicemail box, it would automatically push the caller through to the admin interface. The idea was that if the owner of the box was calling, he or she shouldn't have to put in the passcode to get to the messages. The only problem with this was that, if anyone could spoof your caller ID, they could access your voicemail. After a few high profile such voicemail attacks, many mobile operators urged customers to change their voicemail preferences to require a passcode, no matter what. Still, there were some operations out there, that went under names like SpoofCard, Love Detect and Liar Card, that would spoof a caller ID to get access to a voicemail box. The company behind them has been fined, but what may be more interesting is that T-Mobile and AT&T were also both fined for apparently being misleading about their susceptibility to the hack.

That seems a bit strange, and the article is woefully short on details, unfortunately. Pretty much anything is hackable given certain circumstances, and it always seems a bit odd to totally blame a hacking victim for being hacked. So it would be good to know why T-Mobile and AT&T, in particular, were fined in this case. Did they not even allow passcodes to be enabled for those who wanted to avoid this potential hack?

13 Comments | Leave a Comment..

 
Wireless

Wireless

by Mike Masnick


Filed Under:
android, bandwidth, cap, g1

Companies:
t-mobile



T-Mobile Says It Was Only Kidding About That 1GB Soft Cap On G1 Data Use

from the oh-that? dept

So after a bunch of tech sites pointed out how ridiculous it was that T-Mobile was claiming "unlimited" data plans on the new G1 "Google Android" phone, T-Mobile quickly scrambled to say that they were ditching the 1 gig limit, though they may still replace it with something else (perhaps when tech bloggers aren't paying attention, one would imagine).

10 Comments | Leave a Comment..

 
Wireless

Wireless

by Mike Masnick


Filed Under:
android, bandwidth, fine print, g1, unlimited

Companies:
google, t-mobile



T-Mobile Sends G1 Android Data Users To The Slow Lane: 50kbps Over 1 Gig

from the slow-lane dept

There's a ton of predictable press coverage and reviews of T-Mobile's new G1 phone -- the first commercially available phone that uses Google's Android operating system -- but Broadband Reports has dug through the fine print of the user agreement and noticed something rather interesting. While the marketing materials scream out about a $25 "unlimited" data plan, the fine print notes that if you go over 1Gig per month, the rest of your data traffic that month may be slowed down to a piddling 50kbps. So, before you get that G1 and plan to surf away, recognize that while, unlimited, T-Mobile apparently has no intention of letting you actually surf with any reasonable bandwidth after a certain point.

32 Comments | Leave a Comment..

 
Wireless

Wireless

by Mike Masnick


Filed Under:
mergers, mobile phones

Companies:
alltel, at&t, sprint, t-mobile, verizon wireless



Before Getting Bought By Verizon Wireless, Alltel Tried To Buy Sprint, T-Mobile And AT&T Wireless

from the merger-mania dept

After being rumored for years, Verizon Wireless finally bought Alltel earlier this month. However, Alltel's CEO has now admitted that the company wasn't just looking to be acquired these past few years. It had, itself, aggressively looked into buying Sprint, T-Mobile or even AT&T Wireless at times. In fact, it tried to buy Sprint three separate times. The other two certainly seem like longshots. Deutsche Telekom appears to have no real interest in getting rid of T-Mobile, and depending on which version of AT&T Wireless you're talking about, it would have been difficult to convince the various parent companies involved that a sale to Alltel made sense. And that, of course, ignores the fact that T-Mobile and AT&T Wireless were from the GSM camp, rather than the CDMA camp. Still, it is interesting to see that the smaller Alltel was looking at buying its way up the food chain.

19 Comments | Leave a Comment..

 
Legal Issues

Legal Issues

by Mike Masnick


Filed Under:
contracts, wifi

Companies:
at&t, starbucks, t-mobile



T-Mobile Sues Starbucks For Over Eager Switch To Free WiFi

from the that-wasn't-what-we-bargained-for... dept

Back in February, Starbucks surprised an awful lot of people by signing up to use AT&T's WiFi offering, ending the exclusive deal it had for many, many years with T-Mobile (and Mobilestar before T-Mobile purchased that company). Part of the AT&T deal was that it would offer some amount of free WiFi -- something T-Mobile/Starbucks never did. There was some early confusion about the deal concerning whether T-Mobile would continue offering service and how the two services would overlap. It turns out that it wasn't just confusing to us reading about it -- it was confusing to T-Mobile as well.

T-Mobile has now sued Starbucks over the transition, saying that the company has gone well beyond what the two companies had agreed to. The original plan was that T-Mobile would gradually transition the network to AT&T, and the companies would work together to make sure things worked well for customers of each company. However, just recently, Starbucks pushed forward with the plan to offer some number of "free" WiFi hours to AT&T customers -- much to the annoyance of T-Mobile, who says most of the WiFi equipment in use is still T-Mobile's, and the company isn't getting paid at all for the free hours (an interesting question could be whether or not AT&T is getting paid for that usage).

Basically, the infrastructure transition has barely begun, and Starbucks is already acting as though it's complete, shifting over to the business model provided by AT&T, without having that work within the parameters of T-Mobile's model. While the legal result will almost certainly come down to contractual terms, the real issue may be that this suggests the promised "smooth transition" from T-Mobile to AT&T may not be very smooth at all. T-Mobile is going to have less and less incentive to make sure that the network really works all that well, especially if it feels that it's being cheated out of money for the use of its network.

34 Comments | Leave a Comment..

 
Legal Issues

Legal Issues

by Mike Masnick


Filed Under:
magenta, trademark

Companies:
t-mobile, telia



Sorry T-Mobile, Other Companies Can Use The Color Magenta

from the trademark-isn't-ownership dept

A while back T-Mobile received a trademark on the color magenta for use in selling mobile phone services in certain markets, but it seems to be taking the trademark a little more seriously than it should, even to the point of threatening the blog Engadget for having a magenta-colored logo. It also took mobile operator Telia to court in Denmark for its own use of a magenta logo, but missed out on a couple of important facts: Telia and T-Mobile don't compete in the same markets in Denmark and (more importantly) Telia's magenta is a different shade of Magenta. The court has not just tossed out the lawsuit, but has dumped the court costs and Telia's legal fees onto T-Mobile's bill. Hopefully that will teach them that trademark law shouldn't be abused.

23 Comments | Leave a Comment..

 
Predictions

Predictions

by Mike Masnick


Filed Under:
integration, mergers, mobile networks

Companies:
deutsche telekom, sprint, t-mobile



So Many Reasons Why Deutsche Telekom Won't Buy Sprint

from the pin-drop dept

There's a rumor going around that Deutsche Telekom is thinking about buying Sprint. This is a bad idea for any number of reasons. Deutsche Telekom owns T-Mobile, which competes with Sprint, and which has certainly fallen way behind AT&T, Verizon Wireless and Sprint in terms of coverage and next generation network deployments. At the same time Sprint has definitely faced some tough times recently that have weighed heavily on the stock. So, you could see why Deutsche might initially think about it. T-Mobile is behind in the game, and merging with Sprint could (emphasis on could) jumpstart the business a bit. Plus, it's reasonable to think that Sprint may be undervalued these days. But... it's still a bad idea. T-Mobile and Sprint use totally different network technologies. Sprint is still dealing with the mess of trying to integrate Nextel's iDen system into its own CDMA-based system (which is part of the reason the company has been in trouble lately), and dumping a third totally incompatible technology into the mix doesn't seem wise. You could (again, emphasis on could) argue that Sprint now has some experience merging totally incompatible networks, but so far it's not exactly good experience. All in all, this seems like someone tossing out a suggestion. It's hard to see this as a legitimate possibility.

14 Comments | Leave a Comment..

 
Wireless

Wireless

by Mike Masnick


Filed Under:
3g, broadband, data, wireless

Companies:
t-mobile



Dear T-Mobile, The Point Of 3G Is For Data Speeds

from the you-can't-be-serious dept

T-Mobile was the one national US mobile operator who really didn't have much of a strategy when it came to upgrading its network. While Sprint, Verizon and AT&T all were working on 3G options, T-Mobile kind of sat around twiddling its thumbs. Then it finally realized that it was way behind and made an effort to catch up. Years after everyone else got around to launching stuff (and as they're all now setting plans for their 4G options), T-Mobile is finally launching its 3G wireless service. But in a move that makes absolutely no sense, it's only for voice -- not for data. If it's only for voice... there's no reason to move to 3G. The very purpose of the 3G mobile network was to enable higher bandwidth for data. This is like building an entire highway next to a perfectly good bike trail... and then saying the highway is only for bicycles. Why bother? Update: Well, phew. Turns out the original story was simply not true. T-Mobile launched with voice and data...

22 Comments | Leave a Comment..

 
Legal Issues

Legal Issues

by Mike Masnick


Filed Under:
engadget, engadget mobile, magenta, mobile service, trademarks

Companies:
deutsche telekom, t-mobile



Engadget Mobile Threatened For Using T-Mobile's Trademarked Magenta

from the morons-in-a-hurry dept

We've certainly seen some dumb trademark lawsuit threats lately, but T-Mobile parent Deutsche Telekom's supposed threats to Engadget may take the cake. It's not that extraordinary for a company to trademark a distinct color that it uses in its logo, and that's exactly what T-Mobile did last year with a trademark (in Germany only) on the color magenta. Now, it's important to realize that this doesn't mean T-Mobile "owns" that color or can forbid anyone else from using it. It really just means that competing providers offering similar goods and services might run into trouble for using the same color, potentially leading to consumer confusion. When this news broke, plenty of people got up in arms, suggesting that T-Mobile "owned" magenta, which just isn't true. However, it does look like its lawyers think it gives them rights far beyond what it actually does.

According to Engadget, Deutsche Telekom lawyers have sent a nastygram to Engadget, because the blog uses magenta in the logo for its sister site, Engadget Mobile. Of course, it's hard to believe that anyone would go to Engadget Mobile and believe it was somehow affiliated with T-Mobile. The logos are quite different, and the services they offer (obviously) are totally unrelated. In fact, this whole thing seemed so ridiculous that I assumed it was an April Fool's joke -- though the folks at Engadget insist it's not. And, if you want icing on the cake, last year Engadget was one of a few sites that defended T-Mobile for its magenta trademark when it became news last year.

12 Comments | Leave a Comment..

 
Wireless

Wireless

by IC Expert,
Timothy Lee


Filed Under:
flat-rate, wireless

Companies:
at&t, sprint, t-mobile, verizon wireless



Why The Wireless Industry Is Moving To Flat-Rate Pricing

from the lower-transaction-costs dept

One of the recurring trends in high-tech markets is that as information goods get cheaper, they're increasingly sold as all-you-can-eat bundles rather than as individual units. This has been true of land-line telephone service for decades. In the late 1990s, we saw the same transition occur in Internet access. In this decade, we've seen the explosive growth of Netflix, which is an all-you-can-eat plan for video. Now it appears that cell phone companies are inching in that direction too, as Mike discussed last week. For $99/month, Verizon Wireless, AT&T, and T-Mobile will let you talk on your cell phone as much as you want. Sprint is apparently considering adopting a similar plan. This isn't actually all that new.

There are two fundamental economic forces at work here. First, metering imposes costs, both on consumers and on carriers. For carriers, there are the obvious expenses of keeping track of billing information, as well as the attendant support costs when an angry customer calls to complain about unexpected charges. For the customer, metering imposes the mental overhead of having to keep track of whether it's currently "peak" or "off peak" time, how many minutes are in his plan, whether he's currently "roaming," etc. A lot of customers are happy to pay a little bit extra for the peace of mind of knowing exactly how much they're going to pay each month without having to keep track of their calling activity. Second, the wireless market, like the phone, Internet, and DVD markets, is capital-intensive. Unless the network is already fully loaded, the marginal user costs wireless carriers close to nothing. As a result, metered pricing often causes under-utilization of the network because minutes are priced far above their marginal cost. Switching to a flat-rate plan can be economically efficient because it encourages greater utilization of the network without undermining the carriers' ability to recover their fixed costs. That has always been the rationale behind the free night and weekend minutes offered by a lot of cell phone companies over the last few years. They're just expanding it so it applies 24/7.

Timothy Lee is an expert at the Insight Community. To get insight and analysis from Timothy Lee and other experts on challenges your company faces, click here.

26 Comments | Leave a Comment..

 
News You Could Do Without

News You Could Do Without

by Mike Masnick


Filed Under:
all you can eat, broadband providers, flat rate, metered, mobile operators

Companies:
at&t, sprint, t-mobile, verizon wireless



Mobile Operators Go Unlimited... Just As ISPs Insist They Need To Charge Per Byte?

from the please-explain... dept

There was a ton of press coverage yesterday over the fact that one-by-one, Verizon Wireless, AT&T and T-Mobile all announced $99 "unlimited" calling plans, ahead of Sprint who had actually been rumored to be gearing up to launch just such a plan. There were a few different storylines that could make this interesting. For example, it's not clear why it's such a huge deal when regional operator MetroPCS has been offering unlimited calling for ages (at a cheaper price). Hell, AT&T Wireless (when it was run by current Sprint CEO Dan Hesse) launched a $99 unlimited calling plan almost exactly a decade ago.

However, what really struck me as interesting is seeing all of these companies rush towards "flat-rate, all-you-can-eat" pricing, just as broadband providers are insisting they need to switch from flat-rate, all-you-can eat pricing to metered pricing, which some pundits are insisting is a better system. So why is it that one group of companies is moving in one direction, while the other is going in exactly the opposite direction? There are a few factors, but the biggest is the competition issue. Mobile operators are doing so because they feel forced to by competitive pressures (which is evidence in those three companies all announcing plans on the same day, in part out of worries that the fourth would beat them to it). As has been pointed out over and over again, the same simply does not exist in the broadband world in the US to the extent that it does in the mobile space. Some might also point out that capacity questions are different for both sets of providers. Mobile phone operators likely have fewer capacity issues to deal with as a result of unlimited calling than broadband providers do with unlimited internet access plans. However, mobile operators certainly are no strangers to capacity issues -- and they mostly dealt with it by (gasp!) investing in infrastructure so they could support unlimited plans.

20 Comments | Leave a Comment..

 
Wireless

Wireless

by Mike Masnick


Filed Under:
coffee, wifi

Companies:
at&t, starbucks, t-mobile



Starbucks Adds AT&T WiFi; Now You've Got A Choice

from the would-you-like-the-tall-or-the-vente-wifi? dept

For many years, Starbucks has provided a huge footprint for fee-based WiFi from T-Mobile (originally Mobilestar). While many, many others had determined that it made more sense to offer free WiFi in coffee shops and other places to attract users, Starbucks stuck by the relatively expensive T-Mobile WiFi offering. The deal was apparently somewhat (though not fantastically) profitable for both companies, which is why they never seemed to budge from it, even as the idea of fee-based WiFi lost a lot of its luster. However, it looks like things are finally shaking up a bit. Starbucks has now announced that it's also adding AT&T's hotspot offering to its stores, which is a pretty big deal, since AT&T offers access to its WiFi hotspots for free to most DSL customers. Prior to this, most of AT&T's hotspots were found in McDonalds -- so adding Starbucks is a big win.

It's interesting to note, however, that Starbucks hasn't dumped T-Mobile, it's just added AT&T. It's not clear if this means that Starbucks will be installing separate WiFi equipment for both services, but given the recent deal between Apple and Starbucks to let iPhone users access iTunes via WiFi for free, you had to figure that the company was going to be changing some of its WiFi backend equipment. Also given AT&T's iPhone connection, it shouldn't be a huge surprise that AT&T was a part of the new Starbucks offering. The other interesting bit is that for non-subscribers, the AT&T WiFi will be noticeably cheaper in one-off use than T-Mobile's -- meaning even if T-Mobile hasn't been "dumped" it may have just lost many one-time users. If anything, this may continue to push Starbucks to move closer and closer to finally giving up the paid solution and offering WiFi for free -- just as many Starbucks managers have been begging the company to do for years.

16 Comments | Leave a Comment..

 
Legal Issues

Legal Issues

by Mike Masnick


Filed Under:
class action, text messages

Companies:
t-mobile



T-Mobile Sued For Forcing People To Accept (And Pay For) Text Messages

from the pls-dnt-mk-me-gt-txt-msgs dept

It's not too hard to remember the day when a lot of people couldn't receive text messages on their mobile phones. I still sometimes ask people to see if they use text messages. Apparently, if they're on T-Mobile, I shouldn't even bother. Even if you don't want to use text messaging, T-Mobile requires users to accept messages... and to pay for them. That's resulted in a class action lawsuit against the company for unfairly forcing people to pay for text messages they don't want. While it may not be a huge issue right now, if SMS spam picks up, it could become a very important issue.

44 Comments | Leave a Comment..

 
Earnings, IPOs, and the like

Earnings, IPOs, and the like

by Mike Masnick


Filed Under:
ipos, mobile

Companies:
danger, t-mobile



Dangerous Reasons To IPO

from the desperation,-not-growth dept

There's been some indication that the IPO market is beginning to open up again, what with profitless firms like NetSuite having successful offerings. At about the same time that was happening, Danger filed to go public as well, but perhaps for all the wrong reasons. Like NetSuite, Danger is losing money. However, the story of Danger is an instructive one, and it's surprising that the firm is trying to go public. Reading between the lines, it feels like Danger is trying to go public more as a desperation play to stay in business, rather than as part of a plan for strategic growth.

Danger, of course, launched its HipTop/Sidekick device way back in 2002 to much fanfare. I bought one the first day it was available, and used it for more than three years. It really was one of the first useful mobile devices for being able to do things like web surfing. However, while the company did an amazing job in designing the device, it made a series of strategic mistakes that have since limited the company's business chances. First, it took an early investment from T-Mobile. Initially, this might sound like a good idea for a device maker looking to have its device offered by a mobile operator -- and, indeed, T-Mobile offers the Sidekick. The problem was that almost no one else wanted to go near it, as they didn't want to help out a rival operator's investment. Danger picked up a few smaller operators, but never could get the device out to a large enough audience.

The second big mistake was in closing off the device. Early on, it didn't even have a developer kit for developers. Once it did, many developers had already moved on to other things. On top of that, Danger/T-Mobile still controlled which apps were available. You couldn't go around Danger/T-Mobile to load whatever app you wanted. That also turned off developers who knew they couldn't just write an app and push for viral adoption. They had to go through the gatekeeper. It certainly made the device a lot less useful. Whereas for other popular platforms there were tons of apps available, Danger had a very limited supply.

While the company built up a modest following, in part by getting famous young celebrities to carry the device (which backfired a bit when Paris Hilton's got hacked), many other devices eclipsed Danger's devices and the company has done little to push its way back into the discussion. It basically just bet on having a really cool design and continually making minor updates to that design. That was strong enough to keep the company afloat, but it's still losing money, not growing very fast, and still incredibly reliant on T-Mobile for a huge chunk of its business. It's certainly not a particularly compelling IPO story -- and it feels like an IPO out of desperation for new capital, rather than an IPO of a company that is growing and has strategic plans in place for the use of a capital influx. Perhaps the folks at Danger saw an opening in a market that's warming up to IPOs, but it wouldn't be surprising at all to later hear that the company ends up pulling the IPO.

5 Comments | Leave a Comment..

 
Wireless

Wireless

by Mike Masnick


Filed Under:
gphone, open systems, operating systems

Companies:
google, htc, sprint, t-mobile



The Google Phone... Everything You Expected And Less (For Now)

from the and-that's-it? dept

After Apple finally announced its iPhone, all the folks who spent years and years passing around rumors about it needed to move onto something else. The first easy target was the gPhone from Google, which has been rumored to be all different things over the past year. However, in the last couple of months, Google and its partners started leaking out a lot more info to tamp down expectations. They stated a few times that they were not building hardware, and then it came out that it was really just software that device manufacturers and mobile operators could offer that would be more "open," but would clearly promote various Google services. Not quite as exciting as some of the earlier rumors. Today Google finally put out the official announcement and there are no real surprises. It appears to be exactly what the lowered expectations set it to be: an operating system built on Linux, that is open source and free for anyone to use. That is, it's not a phone at all, but simply a platform for others to use.

Sprint and T-Mobile have signed up as partners agreeing to offer it -- but it isn't expected on handsets until the latter half of 2008. Despite some rumors that Verizon Wireless would put aside its dislike of Google and participate, so far it is staying on the sidelines. This isn't surprising both given Verizon Wireless' distaste for Google and its insistence on walled gardens over anything open. Also staying away is AT&T, which is hardly surprising at all, given its investment in the iPhone. The big handset partners are HTC and Motorola -- again, no surprise. Motorola has dabbled around with Linux phones before and knows that it needs some kind of differentiator after getting clobbered by others in the market. HTC is a huge producer of Windows Mobile phones but has long had a pretty rocky relationship with Microsoft, so seeing a way to potentially get out from under that yoke must be appealing.

All in all, this is a good step forward for the mobile industry -- offering a more open alternative with some big name backers. However, it's not a revolutionary leap forward just yet. It's an enabling move that hopefully will drive more innovation and potentially push operators towards a more open, more innovative world, but it's going to be an incremental process. Even though it clearly wasn't for everyone, the iPhone redefined what mobile phones could be overnight. Almost every company in the space has adjusted at least some part of their strategy to deal with the iPhone. The Google phone platform won't have that same overnight impact, and depending on how well it works, it may never have that kind of impact. There will be a number of powerful forces working against Google in this space -- and unlike Apple, since Google isn't controlling the initial rollout and everything around it, it may make things tougher to fight through the initial noise. However, if it can get through any initial troubles towards adoption, then its openness and Google's commitment to push it forward could lead to mobile devices and services that are a lot more powerful. So, while it's not the flashy overnight sensation that the iPhone was, it has the potential to have a much larger long-term impact, though done so in a more typical understated manner.

15 Comments | Leave a Comment..

 

More Stories >>

Search Techdirt Wireless
And now, a word from our Sponsors..



Popular Posts
Poll

Which Internet Concern Worries You The Most?

 

 

 

 

 

 


Add Techdirt RSS To Your Reader
rss Add Techdirt to your Bloglines
Add Techdirt to your Google Add Techdirt to your My Yahoo
Add Techdirt to your Netvibes Add Techdirt to your Newsgator
Subscribe to the Techdirt Wireless Newsletter

Techdirt Wireless Email Newsletter

Older Stuff

Tuesday

5:08pm: iPhone To Be Offered From Multiple Carriers, eh (53)
3:24pm: Palm Finally Realizes It Needs To Help, Not Hinder Developers (21)

Friday

6:44pm: The iPhone Is Not The End Of Innovation (55)

Thursday

5:16am: Will People Pay CNN To Help Them Report The News? (81)
12:54am: See, The Palm Pre Can Be Offered For Free (36)

Tuesday

5:28pm: New Zealand Says You Can't Use Your Mobile Phone For Navigation While Driving (16)
12:20pm: Why Apple Should Let Other Devices Connect To iTunes (109)

Wednesday

12:22am: Clearwire Supports Net Neutrality? Does No One Remember Its History? (7)

Tuesday

10:34pm: Why Did Apple Approve Spotify? (16)

Wednesday

9:59am: Content Owners Force Hulu To Block Mobile Browsers As Well (29)

Tuesday

5:02pm: Sprint Offers Palm Pre For $100 For A Month, Maybe Two... Then, Oops, Not At All (19)
8:38am: Recording Industry, Japanese Gov't Work To Break Your Mobile Phone If You Listen To Unauthorized Music (20)

Thursday

3:52pm: Why Sprint Should Be Giving Away The Palm Pre For Free (65)

Friday

4:13pm: Did People Think No One Would Recognize REAL ID If Introduced Under Another Name? (9)

Tuesday

1:17pm: Latest Techno Moral Panic: Texting Is 'Rewiring Young Brains' (28)

Monday

5:34pm: Laptop Magazine Rescinds 'Best Of Show' Award For Zer01 (14)

Tuesday

6:18pm: The Death Of Paid WiFi (46)

Friday

6:37pm: Apple's Google Voice Rejection Wakes Up A Dormant FCC; Investigation Begins (77)
9:24am: iPhone Haters Are Stick-Shifters In An Automatic World (140)

Thursday

8:14am: Is Apple Suggesting That The DMCA Prevents Terrorism? (42)
12:31am: What's Next? Can Senators Ban Stupidity While Driving? (62)

Wednesday

8:28pm: New Mobile Music Service Works Via Voice Calls (9)

Tuesday

3:15am: Apple Says No To Google Voice On The iPhone (64)

Monday

9:22am: Fact Checking? UK Paper Simply Takes The Word Of Guy Who Claims WiFi Allergy (29)
4:59am: Will Apple Allow Spotify On The iPhone? (15)

Thursday

9:12am: Australian Police Start Wardriving; Telling You To Lock Up Your WiFi (45)

Wednesday

4:02pm: The Zer01 Story: Lots Of Buzz, But Is It Actually Real...? (69)

Tuesday

2:41pm: Thin Skin: SMS Political Jokes In Pakistan Can Get You 14 Years In Jail (18)

Friday

3:23pm: RIM Pays Out Again Over Patents (31)

Thursday

1:23am: The Reality: Not As Many Actual Apps In The iPhone App Store As You're Told (26)
More arrow
Quick Links
Close
E-mail It