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We’ve seen this as the end game for the telecoms for sometime: cell phones will stop being the main pipeline for cash. Technologies like VOIP are changing the means by which we communicate and that could spell trouble for the likes of AT&T and Verizon. So what is a heavily invested in infrastructure to do? Answer: go after everything.
Indeed, going after everything has become a mantra in big telecoms today. Earlier this year, Verizon announced they would allow 3rd party devices on their network in a big step forward toward openness. Even Sprint says their deal with Clearwire will yield new devices on their WIMAX network.
AT&T’s plan is create a new “emerging devices” division that will be headed by Glenn Lurie, currently holding legendary status for negotiating the iPhone deal (sidenote: not sure how much credit to give him, could Apple have asked for more?). Lurie’s new division will spearhead putting wireless links into devices beyond mobile phones and laptops such as digital cameras, GPS navigators, photo frames, refrigerators etc.
Today, many companies such as EyeFi are building connectivity into products. Some manufacturers are building in Wi-Fi such as Fuji with their digital cameras and GPS nav devices like the Dash come with a cellular connection already built in. This train has been coming down the tracks for some time.
Clearly, to get a bigger piece of pie, AT&T sees the need to get a bigger pie. While I am giddy about the idea (it doesn’t take much I guess), I am curious how quickly we’ll run out of phone numbers by adding one for every single device. Oh, and AT&T will need bigger stores.
Read: [Reuters]
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