You're really underestimating the difficulty of establishing a new cellular network.
As for satellites, forget them. They take years to develop and launch, cost tens or hundreds of millions of dollars for the satellite and require obtaining frequencies from the FCC. Satellite communications is difficult to impossible inside buildings and difficult to receive in cities with lots of skyscrapers.
In addition, finding sites for antennas, negotiating with landowners, local governments and consumer groups in the areas can take months and, often, years. Nationwide systems typically cost billions of dollars to create. As a result of all these problems, satellite communications airtime is much more expensive than terrestrial systems.
There's no way Amazon will construct its own cellular system. Amazon could make VoIP a major part of its phone, with service via WiFi, but it wouldn't be a mass market service without a cellular component.
Amazon will partner with one or more cellular operator, as a mobile virtual network operator and/or an agent.
Well, Amazon is basically focused/fixated on three things:
being the best possible content delivery network
not relying on other companies
It's that last bit that's the rub here. It's difficult for me to imagine that Amazon is going to launch a phone and then have the customers who buy it disappointed with their partner's service. Especially after Apple made the exact same mistake with AT&T and the launch of the first iPhone.
Amazon believes in controlling the consumer experience, start to finish. I agree that it's difficult to speculate as to how exactly they would set up their own network, but, well... how hard could it be? They can afford to launch a satellite. They can afford to set up towers. Maybe it would all work through the Internet, maybe it would work partly through the Internet, maybe they are going to re-invent the way it works.
But I just don't see them partnering with an extant network provider. Or maybe they will, but they will reserve the right to change that partnership, as the Kindle's "whispernet" has involved both AT&T and Sprint. Or maybe they will make run their own service on top of their partners', and change the service provider in a given area dynamically based who is getting the best coverage.
I hope Amazon is more successful with its phone than Sony!
I suspect Amazon doesn't want a niche phone, just as it doesn't want the Kindle Fire to be a niche tablet. The Fire might not generate as huge a volume of sales as the iPad (although we don't know), but it's likely to be a significant slice of the analysts' pie charts describing tablet percentages and sales.
If Amazon comes out with a phone, it will want it to become a big consumer seller.
Hey, if Sony can have its own PlayStation phone to leverage itself as a niche device in a market it has dominated for years, I don't see why Amazon can't do precisely the same thing. Thanks for your thoughts, Alan!
To get the Kindle underway, Amazon took a big hit on licencing fees for a lot of popular novels. I remember there was a quote in a major news story from some guy at Penguin, saying that it was simply impossible for some classic work to be offered for less than $10, because that would mean a loss. But he was wrong; Amazon was taking the loss.
What Amazon wants, and is good at getting, is market share. Once they get enough users hooked, they'll make the money back in ancillary services. And they will presumably be setting up their own cellular network, which will probably have the best reception we've seen yet.
Hi Alam your vblog made me exclaim oh no not another smartphone ! though i dont want to write off the Amazon phone this early (remember how sceptic most of us at IE were when Apple launched iPad) but Amazon will have to be exceptionally good both at the technology and marketing front to beat the already, correct me if i am wrong, saturated smartphone market.
If the Citigroup researcher is correct and the phone would cost Amazon $150 - $170, cellular operators certainly could give it away for free for a two-year contract. However, Amazon would have to be assured the phone would generate sufficient ongoing revenues to justify the free phone.
Amazon also could provide other incentives, such as pay $80 for each of two years for Amazon Prime and get the phone for free. A potential problem with the free videos from Amazon Prime is airtime. So Amazon might have to offer some sort of free or discounted deal, such as pay for Amazon Prime and your first 2GB per month of streaming Amazon content are free.
Businesses helped neighbors with Internet access and mobile device charge-ups during Sandra. Following that example, enterprises should consider preparing Internet disaster plans to help the public during disasters.
A survey by JD Powers found that customer interest in product features is lessening as phones evolve. Rather than features, price is driving purchases, and that change could have a dramatic impact on how IT departments secure these devices.
We think Amazon's Kindle Fire is pushing Apple to a smaller iPad format. But Sony's Vita and the interest in a small device for portable gaming may create the real threat. Keep your eye on the tablet-gaming space!
The drive to stream TV directly to HD sets, to tablets, or to PCs in the home may create a broader demand for streaming, and this could create a major new source of traffic pressure on mobile networks, mobile pricing, and mobile service policies.
Mobile TV is everywhere, and yet, nowhere. Nobody uses it – because the handsets aren't good, the pricing is too high, and the coverage is not good enough. But Qualcomm's FloTV Personal TV aims to change all of that.
Expert Integrated Systems: Changing the Experience & Economics of IT In this e-book, we take an in-depth look at these expert integrated systems -- what they are, how they work, and how they have the potential to help CIOs achieve dramatic savings while restoring IT's role as business innovator. READ THIS eBOOK
your weekly update of news, analysis, and
opinion from Internet Evolution - FREE! REGISTER HERE
Wanted! Site Moderators Internet Evolution is looking for a handful of readers to help moderate the message boards on our site as well as engaging in high-IQ conversation with the industry mavens on our thinkerNet blogosphere. The job comes with various perks, bags of kudos, and GIANT bragging rights. Interested?