3G and HSDPA coverage: operator execs are not using what they're selling

Why isn't 3G taking off as anticipated? Because operator execs do not try to use the services they are selling. Let me explain.

It is common knowledge that 3G infrastructure investment is generally limited to densely populated areas: it's costly and it makes sense (does it?) that operators should start investing where they find the greatest number of customers. The thing with 3G though (at least in Europe) is that nobody cares about the mobile services offered over the network, except getting fast access to the Web while on the go. Plus it's still ridiculously expensive.

But in densely populated urban areas people have lots of alternatives for getting on the web. They are likely to be commuting from home to office (both with broadband connections) or they may just hook up on one of the multitude of WiFi hotspots. The instances when they have no other choice but their mobile are very very few and not worth the subscription price.

But rural areas do not present anything near as many alternatives for getting on the web. Fixed broadband infrastructures are patchy and there aren't many (or any!) WiFi hotspots to be found. This is where you really need your broadband mobile internet! Except there's no coverage. I bet that if they do the math, operators will find that there are many people who are prepared to subscribe to 3G even if they're only going to use it when out of town. This pent-up demand should justify the infrastructure investment, and more.

If you're an economist, it's plain network externalities. If you're an end user, it's plain common sense. It seems to me that operator execs are neither.

Mobile TV (again...): if it worked, we wouldn't be asking

Is mobile TV catching the zeitgeist again? Check Blogpulse. On April 2, Business Week published an article (p. 24) on the prospects of advertising over mobile TV. The author, Jon Fine, is very sceptical. And rightly so. Of course, two readers invested in this prospect rushed online to justify the hype, talking about the tipping point of mobile tv and the fact that it's coming sooner than we thought. Interestingly, the following issue of Business Week had mobile TV as the topic of it's "Question of the week": "Do people really want to watch TV on their cell phones or other handheld devices?" Two of the three experts are adamantly positive. My question is the following: Mobile TV has been with us for over two years now; the hype has been going on for much longer and we're still wondering if people want to watch it? If it worked, we wouldn't be asking.