The big mobile data shift has occurred: people now use their cell phones more for data than for calls. According to The New York Times, there’s been a 50% increase in certain areas. This is a major changeover for the utilization of mobile devices, making it an important point for wireless service providers to consider. Every aspect of the mobile industry will, in fact, have to consider this change, as it determines the economic factors surrounding its future.
We’ve seen an explosion in the number of smart phones that are being released and sold on a regular basis. It’s beginning to get difficult to keep up with the improving features of each new mobile phone that emerges on the market. With the advanced technology of these smart phones, it’s also easier to incorporate things like applications and media, thanks to larger storage and faster precessing. The success of application markets like the iTunes App Store are proof that this economy opportunity is booming.
But can the wireless providers keep up? Companies such as AT&T and Verizon are pressuring each other to stay on top of trends, pushing 3G and 4G networks and flat-rate data plans. The speed with which consumers are now using data transfers through their phone has increased in the past few years has alerted the wireless providers to the future of consumer behavior. They believe that continuing at the current rate will be unsupportable in the long run. Both AT&T and Verizon are looking to restructure their data plan offerings in order to charge according to usage, rather than a flat rate.
This takes the mobile industry in a possible new direction, with service providers creating a new price wars around data plans instead of the number of minutes you receive. More and more, the cell phone companies are getting into the business of data transfer, and that will require a new shift all its own. This could affect the prices consumers end up paying, which will be another factor to consider before purchasing a new smart phone.
Tie that in with the increase in patent law suits regarding mobile device technology and manufacturing, and another price war could erupt in another area of the mobile industry. The downside is that this could intermittently increase prices consumers have to pay. The upside is that this is the natural course of business, and will likely affect consumer prices to a significant extent. If anything, these growing pains will continue to make prices cheaper.
So now that we have shifted our remote communication preference from the phone call to the tweet, we must also think of how that affects our relationships, business practices and marketing. Finding a happy balance between face-to-face interaction and the digital world will lend to a great utilization of mobile devices.
