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What’s holding mobile growth back? And how much should you care?

I’ve said for some time that the networks provided by mobile phone companies in this country limit the utility – and ultimate expansion – of the mobile web. Walt Mossberg provides an alternative point of view, arguing that the real problem is the carriers and their archaic business models. Clearly, he’s on to something. Mossberg makes a compelling argument for freeing mobile phones from the current system, and an even more compelling argument that the outcome will represent a watershed event, much as Compaq’s first PC clone did for the desktop computer industry.

Still, local businesses should recognize that the current model also encourages increased phone use. Cingular/AT&T (or whatever you want to call them) notes in their annual report “Wireless revenue growth is driven by increased penetration of the mass market and by more demand for wireless access to e-mail and the Internet, along with the ever-increasing popularity of downloadable games, ringtones, instant messaging and video.”

While Mossberg is right that the current model limits innovation and artificially inhibits demand for wireless internet, customers are making use of it. Are you prepared for when they do?

Tim Peter is the founder and president of Tim Peter & Associates. You can learn more about our company's strategy and digital marketing consulting services here or about Tim here.

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