3G Internet Options - coming soon??

There may yet be hope for reasonably priced high speed Internet connectivity in the near future. According to the WSJ, Sprint, Verizon and ATT are looking to offer up "wholesale" connectivity to hardware manufacturers - allowing them to re-sell the service at presumably lower rates than the ridiculously over priced ($50 - $60/month) that is offered by the carriers now. It will be very interesting to see who comes up with the best value in this wholesale model - I would think getting to the $20 - $30/month is the sweet spot for most consumers (I know I would be willing to pony up an extra $20 for 3G connectivity until the WiMax coverage is built out). There are 3 things that make this an interesting play:

1. The carriers get to sell underutilized capacity and not deal with the billing, customer service and ancillary services while picking up large pay outs from the manufacturer wholesalers - Point Carriers

2. Hardware manufacturers (and especially the early adopters for adding 3G) gain a market advantage to sell more boxes and in the process, pick up a recurring revenue stream - Point Manufacturer

3. End user consumers (which are the focus of this entire model) have an option to pick up a reasonably priced data option for their non-smart phone devices, thereby incentivizing consumers to purchase more hardware and additional services that the carriers had originally priced out of their budget range.

All of this sounds good in theory but there are caveats. The main ones being price (will there be a compelling story and price point) and equally as important, service. It's great if you and get a cheaper data plan but if the support is lousy (from customer support, to billing, to application support) then it will languish. That being said, with the economy being where it is and with everyone looking for ways to tap new markets, there is nothing but upside to both carriers and manufacturers as long as they get it right.

We shall see...

Movie Quote:

Narrator: Tyler, you are by far the most interesting single-serving friend I've ever met... see I have this thing: everything on a plane is single-serving...
Tyler: Oh I get it, it's very clever.
Narrator: Thank you.
Tyler: How's that working out for you?
Narrator: What?
Tyler: Being clever.
Narrator: Great.
Tyler: Keep it up then... Right up.
[Gets up from airplane seat]
Tyler: Now a question of etiquette; as I pass, do I give you the ass or the crotch...?