Call Rates R.I.P-UPDATE

I had explained in January that why “there will be no more Mobile operators but only Internet service providers” and why  there will be no mobiles but only  MIDs.

Well….looks like  the change has begun…

ConsumerReports.org reports that “AT&T will begin selling  netbooks with integrated wireless Internet cards, selling them for as low as $50 — with a data plan contract, of course. The rollout will begin in Atlanta and Philadelphia.” read more >>

Looks like AT&T  has realized the change…and it wont be much time before this change becomes global..

Read my previous posts about this :-

• Bye Bye Cellphones... Hello MID 
•  Call Rates R.I.P

Bye Bye Cellphones... Hello MID

Technology is moving at a greater speed than we think,atleast it is faster than I thought.

Earlier I had  pointed out the narrowing difference (Toshiba Ikiller) between mobile phones & computing devices  and the possible strategic inflection point (Call rates RIP) the telecom industry might come across.

So what? take a look at the news from CNET.com

Intel announced here Monday at the GSMA Mobile World Congress that LG Electronics will use its latest generation technology to build a new class of device called mobile Internet devices, or MIDs.Now the companies are working on a new class of product that are mini-computers that can also be used to make phone calls using a wireless Internet connection. Intel sees the category of product as something that is somewhere between a smartphone, like the Apple iPhone, and a Netbook, a scaled-down version of a notebook computer.

IF you see the image below you will get the idea of that "something somewhere" product Intel is talking about. ARM is one of the early firms to have a vision about MID's or Mobile Internet Devices

The article further states the implication of MID's in the telecom industry which will eventually make Call rates R.I.P

I thought it will take another decade for this to happen, but looks like  we will bid farewell to cellphones & embrace MIDs,very soon.

Call Rates R.I.P.

As Rakesh wanted to buy a new mobile of the smartphone breed ,Dhiru and I were discussing about different mobiles and the new age mobile applications with him.Just then occurred to me that in the near future there will be no more call rates as such.

Let me explain .Almost every smartphone is equipped with 3g, Wi-Fi & other such wireless connectivity solutions. Wi Max and 3g networks have already been launched in some areas of India.Suppose I have a Smartphone ,so does my friend and we both have a WiMax connection, then I don't have to call or text through the GSM or CDMA connection but I will be using the Gtalk to IM or Skype to call.I will be charged for the data usage only which will be much lesser than call rates.

That means with Internet access everywhere, mobile users can stay connected through the internet itself and not necessarily through traditional networks like GSM .So there will be no more Mobile operators but only Internet service providers.

Yes it will be long time for the entire change but it will surely disrupt the telecom business model and entirely change the rules of the industry.This type of scenario is referred as a strategic inflection point,only the companies which will accept this and adapt future technologies will sustain in the future.

With telecom operators rolling out more networks and smartphones becoming more cheaper, its just a matter of time and it will happen...eventually .