Wednesday, June 04, 2008

A great mystery solved?

One of the greatest mysteries of the mobile web worker age is: why can't I use my cellphone as a wireless modem? The technology supports it -- Bluetooth has profiles specifically for this application, laptop drivers have it. Why don't vendors enable this?

I recently stopped by an ATT store to check out pricing and service plans for 3G Express Cards. The rate plan for a 3G card is $60/month for unlimited Internet access, which is about what I pay for my iPhone voice+unlimited internet access, also from ATT. "Is there a bundle price, since I already pay for Internet Access for my iPhone?" I asked. Of course not. How naive of me.

So the mystery is solved. If I could use my iPhone to bridge other devices (via Bluetooth) onto the Internet, then ATT couldn't sell Laptop cards. Wireless carriers still hang onto the belief that they can control the user's experience end-to-end, rather then just being a comodity service. But how can one company ever be really great at both operating a national cellular network and providing innovative consumer services? Enabling me to use my iPhone as a wireless modem with my laptop would increase the value of my iPhone, and my cellular service. For an additional $60 per month, its cheaper to just find a Starbucks, plus I get to have a cup of coffee.

There must be an objective way to determine when an industry reaches the point where denial of service takes over from innovation as primary driver (music, telecommunications, oil). This is the point where shareholder interests and customer interests go from being aligned to being opposed. I think it is scenarios like this one that fuel resentment of corporations and capitalism.

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