Is Cellular the new Crack?

Peter : On Rad's Radar?
| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

Is Cellular the new Crack?

Stacey at GigaOm writes about the data problem for cellular companies. On the one hand, data revenue of $40 to $60 more per month from an account seems pretty good; on the other hand, 70% of the traffic on a tower is from data cards (about 3-4% of subscribers). This seems like they should have known this.

Voice calls take up less than 10K per stream. 3G data takes up to 3MB. AT&T sees how much bandwidth an iPhone pulls off its network (read: a lot!). So are they just getting us addicted to a flat rate service and smartphone access only to charge us per byte later? It would seem so.

Once again they designed a voice network instead of a data network. (Remember the busy signals on dial-up?) And misjudged how people would use it.

With the workforce becoming more mobile and virtual each quarter, cellular data will increase. As households drop landlines, cellular usage will climb. I hope they have a plan for this.

Like terrestrial broadband not having a good enough business model for the network operators, it looks like cellular broadband will have to be re-tooled -- now that folks are addicted to 24/7 unlimited access.

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