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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here
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To: rr_burns who wrote (9706)12/13/2000 2:28:06 AM
From: elmatador  Read Replies (1) of 12823
 
Negroponte forgot Deflation

There is over capacity in any industry you look at. There is deflation in all forms of transactions. There are low costs that are being passed to the consumer. We see many economists looking for productivity brought in by the applications of the computer and networks. But the end result of cheap computers and networks is not high productivity. IT IS LOW PRICES!!! But economists are rooted in an industrial era and keep seeking higher productivity.

The wireless industry grew by offering convenience in providing people telephony. People were willing to pay a premium on a phone call to have this convenience. What started as a rich kids toy is now poor-man phone. Most of the grow of GSM 2G today is developing countries with pre-paid cards. There will be people in the Third World world that will never ever use a plugged telephone.

What this has to do with the wireless industry as a whole and 3G in particular? A lot. Today operators are fighting three things: higher costs of acquiring new users, high churn rates and every new users bring less revenue than the previous one. But the wireless network is capable at doing more than it presently does: it can do GPRS. So operators are trying to use their networks more efficiently.

The vendors and operators know wireless inside out. So why stop there? Operators and vendors know that if they offer data over wireless, there is nothing data over wire can do about to counteract the value of this proposition: access data networks conveniently.
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