Sunday, March 05, 2006

The Next Generation Cell Phone

It’s no longer a question with of where you will lose service, but rather what services your cell phone is missing. As more American cell phone caries begin to release third generation (3G) enabled phones and services the amount of content becoming available to consumers is astounding, but is it really necessary?

Most 3G phones that are being released allow users to download music, video and pictures, send e-mail, take photos, play games, search the Internet and even make an old fashioned phone call. Though the novelty of the multitude of features available to cell phone users is apparent, certain problems currently exist with the success of 3G technology.

As with new technology the cost is rather high for the breadth of services offered. On average to add the full capabilities of 3G technology costs and extra $60 a month on top of the regular monthly service fee. This increase cost has cell phone providers concerned and they are anticipating a surge of consumers opting to use 3G services. In order to entice consumers to purchase the 3G plans, many providers have used promotions to cut the cost of the phones. For instance, Verizon Wireless's LG 8100, which lets customers watch television clips, play games and listen to music, costs $150 after rebates.

Just keeping the price of the technology low does not increase the number of subscribers to the network, however. As most other countries, that had released 3G technology, learned that it takes an extended period of time and low cost plans to get consumers to use the services.

Ultimately the largest obstacle that these new cell phone services will face "… is not pricing or technology, but consumer behavior. Most people still look at these things as phones."


Article:
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