Friday, October 1, 2010
The ipod becomes an iphone?
This NY Times article details the value proposition from a $1 iphone app called line2 which also works on the ipod touch or ipad. Line2 turns your iphone into a dual mode phone and allows you to call over the internet rather than using your minutes from AT&T. This can be especially appealing in areas in which reception is spotty (indoors) which also happens to be the area where you generally have wi-fi. Updates to the app make text messaging seamless as well, further creating value for the consumer. The author claims that this technology could be a "game-changer" and render wireless carriers obsolete. I think that carriers may need to be watchful in this space because it is possible that they may lose control of their layer of the system. The numbers as they are explained here are pretty persuasive in favor of reducing the amount of money you pay to AT&T.
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I would certainly agree this seems like a game changer to me. Unless AT&T can somehow stop this (legal options?) then I think they are in a lot of trouble. More and more people are making less phone calls on there phones, instead opting for text, email, and instant messages. If some people can simply wait until they are in a wi-fi area like inside there house, then maybe some customers won't need plans with minutes anymore. I think this app and similar apps that will come out for other phones will have a major impact on how AT&T and other wireless carriers price there different plan options in the future.
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