Tuesday, November 15, 2005

What Will Service Providers Do?

An interesting story that highlights the upcoming battle service providers face.

Google Local Mobile (and other location based services), which are free to download, are a double-edged sword for the cellcos.

On the one hand they drive internet traffic and mobile phone usage, which when data is paid for by volume or time, and when the data optimized cellular networks remain underused, is a bonus.

But well branded, free options like Google Local will prevent the cellcos themselves from charging fees for their own location based services, which are seen as a key revenue driver for mobile data.

How can they solve this?

They provide an application on their phones that allows both users AND advertisers to use it. Google combined a great service (search) for users and advertisers. See the analogy?

Service providers aren't seeing the big picture with this yet..but they will.

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