Picking Sides – Carriers vs. Device Makers

As Google makes its power play for wireless mobile space, there are already established battle lines that are starting to become more active in the wireless industry. This is especially the case here in the US where the entrenched carriers have been locking consumers into phone platforms, as well as the content that they want users to be able to access. The iPhone has taken a step to break down at least one of these barriers by offering AT&T users a richer mobile web experience.

The leading mobile phone devices in the US are RIM and Motorola. The dominance of these device manufacturers, especially Motorola, is anchored in the control that carriers have over the devices that they allow on their networks. With Google and other ‘traditional’ walled garden Internet players wanting to break into the mobile Internet domain, the release of Nokia’s new Internet ready devices is timely. The suite of phones (N-Series) targets mobile music, gaming and the Internet.

In a previous post, I discussed WiMAX penetration in the US market, and its wide ranging impact on the telecommunications industry. I highlighted this specific concept –”Instead of using your mobile phone or home phone to make calls… you can use Google Talk or Skype to talk to all your friends across the world by simply paying for your WiMAX monthly fee.”

I essentially alluded to the possibility that the very hardware (mobile phones) that we use for communicating today wll become obsolete. Meet the Nokia N800 Internet Tablet – essentially a Palm top with a slick interface which is armed with Skype. Meet the future.

The really interesting concept to note here is that there appears to be an alignment beginning to take shape, where service providers and content providers are aligning and pairing themselves with a device maker. While the applicability of this alignment is global, it inherently offers the US market something it has been lacking – a rich mobile communications experience. It also challenges the carriers to either offer something similar within their current operational paradigm, or break open their networks allowing consumers the freedom that they will begin to demand. I believe this is a master stroke on the part of Nokia (and Skype for that matter). The other device manufacturers should take note and follow suit, or risk being left in the past.

With pressure from the industry leaders like Google and Nokia, the content providers are going to have to pick a side. The smart bet in an economy that is becoming increasingly global is to align with those players who can give you breadth. It is only a matter of time until the US mobile carriers bend to the pressure that its consumers will place on them to join the revolution. The carrier branded and controlled mobile phone will be a thing of the past and it will happen sooner than you think.