Corante

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Dana Dana Blankenhorn has been a business journalist for over 25 years and has covered the online world professionally since 1985. He founded the "Interactive Age Daily" for CMP Media, and has written for the Chicago Tribune, Advertising Age, and dozens of other publications over the years.
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Moore’s Law defines the history of technology. It held that the number of circuits etched on a given piece of silicon could double every 18 months as far as its author, Intel co-founder Gordon Moore, could see. Moore’s Law has spawned constant revolutions since then, not just in computing but in communications, in science, in a host of areas. Moore’s Law applies to radios, and to optical fiber, but there are some areas where it doesn’t apply. In this blog we’ll take a daily look at new implications of Moore’s Law in real time, as it rolls forward to create our future.
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May 12, 2004

A Boom Being Missed

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Posted by Dana Blankenhorn

There's a huge market boom coming in cellular data. (Image from the Bell System Memorial.)

This is because the use of nVidia graphics technology, combined with 3G networks, are rapidly bringing cell phones into the computing mainstream.

But greed is causing the industry, most especially Verizon, to miss the boom.

Here's why.

As I noted at CTIA, all the major U.S. cellular networks use different technology. This makes it very difficult to sell simple services like ringtones. You can't advertise them on TV, radio, or in print, because no matter which technology you choose to support a lot of people can't buy your offer.

This is compounded, in Verizon's case, by greed that masquerades as caring.

Verizon, unlike other U.S. carriers (and unlike nearly every other carrier worldwide) doesn't support Java apps. Instead, all apps must be rewritten in Qualcomm's Brew. In addition, Verizon doesn't allow anything to be sold on its network that it hasn't pre-approved, and only allows sales to be made through its own site or "deck." They don't even support third-party "Premium SMS," so there's no way outside vendors can be paid.

This means one-fourth of U.S. cellular users can't buy the cellular data products everyone else can. It's as if you were running a proprietary network in the middle of the Internet boom.

So Verizon is. And we know how that story ends. AOL is fading, France's Prestel died long ago. Anyone remember NAPLPS?

Unfortunately, most customers don't know about this. Verizon is paying no market penalty for this. Its competitors never mention it in ads, so its customers don't even know what they're missing.

This is going to change. And when it does change, Verizon is going to look like New York after next week's big movie.

At that point, send this to Verizon and ask them: Can you hear me now?

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