Interviews with Digital Media Thought Leaders

Profiting from AT&T’s Retreat

Podcast Audio | Posted by Phil Leigh on July 18, 2010

 
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philblueheadshot2Compelling research from AT&T Labs strongly implies that AT&T Wireless’ adoption of usage-sensitive Internet pricing for iPhones and iPads will seriously curtail per-subscriber growth of data usage. Most competitors are expected to follow suit, even after deploying 4G networks. Consequently the per-subscriber growth for the entire Wireless Internet will slow dramatically unless cellular bypass alternatives or other solutions materialize.

Download audio narration for iPod, iPhone and iPad (four minutes)

Our July, 2010 Mobile Bandwidth Crisis research report identifies alternatives and explains implementation. For example, in an earlier post we discussed how ad-supported WiFi networks could successfully bypass cellular congestion. Furthermore, we noted that iPhone-4 features such as FaceTime video calling– prohibited on AT&T cellular — combined with the expected popularity of  media streaming on the iPad will lead owners of such units to seek out WiFi alternatives. Such networks could grow rapidly and earn exceptional profits.

While we could not address all the important management and implementation issues in a blog post, they are covered in our 18-page research report. Additionally, buyers of the report are also entitled to free telephone consultation to help answer questions about how to construct and operate such businesses. Examples of key questions to answer before attempting to build and operate such a network include:

1. How can the operator create ad revenue?

2. How does the operator earn subscription fees while providing free WiFi to consumers?

3. What other fees can the operator earn?

4. Why is a mesh network important?

5. What is the likely profitability?

6. Which access point vendors are best?

7. What are the construction costs?

8. Can merchants be persuaded to pay for construction?

9. How does a merchant target ads about her business to WiFi users when they log-on in her store?

10. When a WiFi user logs-on should the proximate merchant offer a shortly expiring discount coupon on the splash page?

11. How can merchants target ads to WiFi users in other parts of the mesh?

12. How big should a mesh be geographically?

13. How can ads be updated and customized?

14. How can administration costs be minimized?

15. What reporting statistics should be provided?

16. Are big industries going to enter the market? Which ones? Will they be aggressive?

17. How can small companies compete as network operators?

18. What types of localities should be first targeted?

19. Is an FCC license required?

20. Why should merchants strongly want to participate?

If you are serious about making money from the collateral effects of AT&T metered pricing in combination with the enthusiastic market receptions for the iPhone-4 and iPad, you can get answers to such questions in our July, 2010 Mobile Bandwidth Crisis research report. All buyers may phone us for free telephone consultation with questions specific to their needs. Visit Inside Digital Media for more information or to download a free synopsis.

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