The activities consumers used to perform on a desktop relating to eCommerce are moving to the smartphone platform. Based on analysis from eMarketer and the Luxury Institute, affluent smartphone users are pioneering this transition from eCommerce activities that traditionally were performed at home on a desktop to performing those activities at the point of sale or other “remote” locations.
These changes are only going to hasten the demise of the feature phone with limited access to web browsing as lower socioeconomic strata demand the functionality of the smartphone platform.
This migration will continue to support the move from landline data connections to wireless data connections. The associated migration of the value from those landline data connections will continue to bolster the data revenues of wireless carriers as seen recently with revenue reports from AT&T and Verizon.
As the classic quote goes:
“The road to hell is paved with good intentions; the road to heaven is paved with good deeds.”
Wireless providers are going to need to step up and provide the coverage that will make these increased data revenues move from just the affluent to the general population ( the good deeds mentioned above… ).
Having full strength of coverage, but not being able to connect to the Internet will have consequences. Backhaul strategies from the tower to the Internet need to move to the forefront. Focusing on “just” the speed from the device to the tower is a lesson that carriers should be learning today and not repeating tomorrow.
How do you view the situation with network speed vs backhaul?
Post your comments below or email (John.Myers@BlueBuffaloGroup.com) / twitter (@BlueBuffaloGrp) me directly.
Posted August 12, 2010 2:17 PM
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