G1 Android Already Sold Out

October 7, 2008

Two weeks ago today (September 23, 2008) Google officially announced & showed off the new HTC G1, aka the “Google Phone.” The G1 will run Google’s much anticipated Android mobile operating system & T-Mobile will provide service on their GSM network.

In my opinion, the G1 will be this first real competitor of Apple’s iPhone. One week following Google’s announcement & before the first phone had even shipped, T-Mobile announced that they had sold out of the G1. The demand for the G1 has far exceeded both Google’s & T-Mobile’s expectations. In an effort to respond to consumer demand, T-Mobile decided last week to triple the number of G1 mobile devices available for sale through pre-orders until October 22nd.

The excitement surrounding the release of the G1 Android goes beyond the fact that T-Mobile has sold out of their initial inventory. This is excitement can be seen through the numerous developments & announcements surrounding Android to include: Visa developing a mobile payment solution on Android, T-Mobile removing their 1GB data cap, & Amazon preloading their MP3 digital music store on the G1.

The future potential of Google’s Android operating system is almost limitless. HTC is predicting up to 2 million Android phones will be sold by end of 2009. Google is also making waves with mobile carriers with their hopes to free the mobile device from the mobile carrier with a concept they call “Instant Bid.” Expectations remain high & I like many others believe that Google will deliver & expose the necessary technologies for others to develop the next generation of mobile solutions.

Brian Kirk
VP Business Development
NetworkIP & Jaduka

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Text Messaging Fees Equal Profit Center

July 2, 2008

T-Mobile announced that they are increasing their text messaging fee from 15¢ to 20¢ a text message. The rate increase will go into effect on August 29th & will only affect those consumers who do not have a text messaging plan in place. T-Mobile is simply joining ranks with the likes of AT&T, Verizon Wireless, & Sprint who already have increased their text messaging rates to 20¢ a text message.

It was only a year ago when these same providers increased their rates from 10¢ to 15¢, While any price hike should frustrate consumers; what’s frustrates me most about this increase is that as services become mainstream they usually go down in price, not up. The providers have been raking the consumers over the coals for years now on text messaging fees. I can remember when text messaging was 5¢ for sending a message & incoming messages were free. Now it costs me 40¢ to message someone to tell them I’m running ahead of schedule & for them to acknowledge my text.

This price increase by T-Mobile will inevitably force those users who haven’t already signed up for prepaid text messaging plans to do so now. Domestic only text messaging plans offered by T-Mobile include $4.99 per month for 400 messages, $9.99 for 1,000 messages, & $14.99 for unlimited messages. Of course these plans offer a much better rate assuming the user actually sends this many text messages. Many consumers will simply sign up for one of these plans just because they’d prefer to know what they will be charged at the end of the month versus worrying about how much 20¢ a text message will add up to. Regardless, the service providers stand to make a hefty profit on text messaging & will continue doing so until Smartphones become more ubiquitous & chat applications are introduced.