If you are reading this on the Internet then you must know what the iPad is. Sure, there’s lots that could be written on that topic but really I’d like to write about mobile data.
We all have mobile phones, and almost all of them these days have data service. A lot of us have laptops, but if we want to get our laptops online most of us will hunt for a WiFi access point or maybe tether using our mobile phone. A small number of people might have a data card for our laptop to give us always-on real-time access (AORTA) to the Internet from our laptops. But for a lot of people, the iPad might be the first “second” mobile data device they have.
The idea of people subscribing to data plans across multiple devices must have network access providers drooling. As we approach a 100% subscriber base on cellular networks the providers have to look at new ways to boost revenue. Selling multiple plans to single people is a no-brainer for them, but it hits consumers right in the wallet.
Until now the people who are paying for multiple data plans are the ones who have to. It is the people who need data access at all times for work; no network means lost productivity, which is expensive. But as additional devices come online that will use cellular network data, more-and-more people are going to want to take advantage of the advanced capabilities of their devices.
If it would end at the iPad we wouldn’t have to think about it, but it doesn’t. There’s laptops, as I mentioned, but that’s nothing new. These devices just scratch the surface.
Take cars for example. You can absolutely buy cars that can connect to the Internet today. And while most of these cars are expensive today, the technology will only become more affordable. As it becomes more affordable, it becomes more accessible. In fewer years than you have fingers almost any car you buy will have Internet connectivity.
How about digital cameras? With 3G and 4G cellular data connections it is now very practical to have your digital camera upload photos you take to flikr, as you take them. Or an HD video to YouTube. Remember a few years ago when blogs were all the rage? Now it’s twitter, because it’s quicker and easier. But if we can just automatically upload photos we won’t even need to tweet our latest thoughts.
As tablets, cars, iPods, digital cameras, and other devices become more connectable we will find that the pay-per-device subscription model simply isn’t sustainable. And while the cellular companies are likely drooling at the idea of scraping another $350 a year from every iPad 3G owner, I believe that a truly progressive company will find a better way. Almost every provider in the US has a “completely unlimited” phone and data plan today, recognizing that people will pay for all-in solution. But the next market leader will be the company that understands and encourages the push for more connectivity in our mobile devices.
There are challenges with this. If I paid for “personally connectivity”, where all of my devices can be connected for one rate, what will stop me saying all of the iPads that my friends own are mine? We might have to sacrifice some of our “unlimited” comfort for this model to work. But with more consumers being aware of the value of a byte, and the majority of Internet providers putting some kind of limits on data transfers, I don’t see why a payment for a certain amount of bandwidth couldn’t be applied across a finite number of devices.
The first wireless network company to offer 50 Gb of data, shared across up to 5 devices, for $50 a month will do well in future-proofing their business.
There’s no economic future in running a network. Google and Apple have seen to that.
In the civilized world you can already get an all in one data plan that covers lots of devices. In many European countries mobile data penetration rates are in excess of 200%. We’re just slow to get there, out here on the edge.