Cost of mobile devices falling

Published by November 29, 2007

When I first started working with mobile technologies one of the comments made to me at presentations (and still is) is the cost. It is true that the cost of small portable devices is out of proportion with the cost of more powerful laptop computers and desktops. Conversely there is quite a bit of work in making these devices successful and they are less popular, so it is not surprising that the unit cost is higher. Hardware costs are falling, a mobile phone with a Web browser can cost less than £100 and often is included with a lower cost monthly contract (I won’t say free because that is not true ;) with a network provider. However, it is not just the hardware costs that cause concern but the connectivity costs of mobile phones as well.

A few years ago this was a major barrier to mobile Web uptake, I like to think that my criticisms of this high cost helped lead to the recent falls in connectivity costs by mobile phone network operators :) However, I suspect the increasing availability of Wireless networks at low cost or for free in cities and on college and university campuses and the pelthora of lower cost devices like the Nokia N810 and Asus eee that are easy to carry and can use these networks and allow you to make Voice Over IP (e.g. Skype) calls effectively for free has made these operators take notice that their costs are too high.

Now we are starting to see the ‘free mobile’. Blyk UK is offering 16-24, the lucrative (not the highest earners but very few responsibilities e.g. no mortgages and kids ), market a reasonable number of texts and a small number of free minutes for free in return for adverts. Its an interesting move and telecoms companies for a long time have wanted to push adverts at a reluctant market. Blyk is also selling phones (the basic package is a Sim card with text and minutes) and the Sim can be topped up. Will it work? Only time can tell if this model can work and if the number of texts and talk minutes are enough to make up for adverts. Also there is no Web access (as far as I can tell , sadly 16-24 was a long time ago for me so I won’t be getting a Sim – lol ;) .

However irrespective of the fortunes of Blyk it does reflect that downward trend in the cost of mobile computing. Free or low cost Wireless access is helping with this, so anywhere access at realistic costs is an increasing reality for many people.

Category: News

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