So you're shopping for a phone.
Phone A is $30 with 2 year plan. Slim, sleek, and flashy. 2 megapixel camera. High speed internet. Virtually no internal storage. Flash drive slot. This phone is available on T-Mobile.
Phone B is $80 with 2 year plan. Slim, sleep and flashy. 2 megapixel camera. High speed internet. Mp3 player. Video player. Virtually no internal storage. Flash drive slot. This phone is on at&t.
So I took an informal survey of friends and coworkers. Almost everyone goes for Phone B. And nobody uses the mp3 player or video functionality regularly.
- Carriers are desperately trying to hold on to their ownership of the user mobile experience.
- Many carriers are doing so by discounting flashy and fun phones.
- But there is a smarter way to go.
- There is value that the networks can offer - unique value that device manufacturers cannot replicate. Value that will carve out a significant value add for individual carriers.
If you had a choice between added built-in entertainment functionality like an mp3 player you will never use - or integrated services - like an emergency roadside assistance program, medical emergency assistance, cheap/affordable voice driven emergency directions etc - which would you choose?
Would these value add services provide a better, stronger more differentiated revenue stream for carriers than integrated mp3 players?