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Cellular and Computing Industries Finally Collide

magarity writes "For years now cell phones have become increasing complex as computers become ever smaller. The two industries now directly collide. Of special interest is the change in mission statement by Microsoft from 'a computer on every desk and in every home' to 'empowering people through great software, any time, any place and on any device.' With mobile phone saturation in the industrialized world from +80% (Italy) to 45% (USA), this is the next battleground for information technology dominance. Both industries have giant sized players; the shakeouts, as well as implications for consumers, will be huge."

42 of 293 comments (clear)

  1. Europeans will have the edge by Anonymous Coward · · Score: 4, Interesting

    "With mobile phone saturation in the industrialized world from +80% (Italy) to 45% (USA),"

    Am I the only one who thinks this indicates that EU countries will be the major players in the future, with MS going by the wayside?

    1. Re:Europeans will have the edge by Anonymous Coward · · Score: 3, Informative

      err...so northern Finland is a highly populated area? I go there quite a lot, and believe me, it's pretty quiet.
      Market saturation is done on 'per capita' not 'per square km'...

  2. great software... by nogoodmonkey · · Score: 3, Funny

    is part of microsofts mission statement? hmm, i guess "great" is a relative term.

    1. Re:great software... by capt.Hij · · Score: 3, Insightful

      I know I shouldn't make a response to a joke, but... I find it very interesting that the Microsoft mission is becoming incredibly diffuse. They went from OS to applications over a very long time. In a relatively small amount of time they have added peripherils, hotmail, pocket PCs, the XBox, and now phones. Now their mission statement is reduced to "software for stuff."

      This sort of diversification may be good for the company, but when they loose focus on their core it becomes very difficult to maintain the kinds of market share that they are used to. Of course, these other things rely on their dominance on the desktop but at some point something has to give.

  3. New mission statement by tomhudson · · Score: 4, Funny
    'empowering people through great software, any time, any place and on any device </quote>

    I guess this means they'll stop selling Windows.

    1. Re:New mission statement by mstyne · · Score: 3, Funny

      Hahaha, see, I made fun of Microsoft! And I used a $ instead of an "S". It's because Microsoft likes money! Now I'm just gonna sit back and wait for the Karma train to roll on in!

      --
      mstyne: real name, no gimmicks
  4. I can't wait to see... by craenor · · Score: 3, Funny

    How the porn industry will exploit these changes. Whole new meaning to "phone sex".

    1. Re:I can't wait to see... by Mac+Degger · · Score: 3, Insightful

      Case in point: phone sex lines. And the first service I could get on a WAP enabled phone? You guessed it: downloading dot-matrix style pixelated naked ladies. It's not cash that makes the world go round...it's pussy.

      --
      -- Waht? Tehr's a preveiw buottn?
  5. Any device? by charleschuck · · Score: 4, Funny
    empowering people through great software, any time, any place and on any device.

    But I thought only NetBSD would run on my toaster...

    -Charles
  6. shitty screens by muyuubyou · · Score: 3, Informative

    Now if they only produced better screens we could get some work done. The only working thing you can consider "computing" and "cellular" is the Treo.

    That WAP is shit. I can tell you as I have some experience (Nokia, Siemens, Sony, Ericsson, Alcatel, everyone plays his own game, with large differences in the ways things are shown). We have to go directly for web or for Java. I've tested some Nokias and Alcatels. For instance, Alcatel 525 WAP browser, in forms, it doesn't show you the next input till you've filled it!!

  7. looking at cellular use objectively by Anonymous Coward · · Score: 5, Insightful

    What gets lost in this discussion is why cellphone usage so much greater (in terms of percentage) in Europe and Japan is a comparison of the alternatives. How many European and Pacific Rim countries have unmeetered local phone service? That is, talk all you want next door or across town for a very low flat monthly fee?

  8. Re:well duh by nogoodmonkey · · Score: 3, Informative

    Not sure if you are trying to be funny, but Italy is roughly 301,000 sq km, and New Jersey is rougly 19,215 sq km.

  9. Another article in the same issue of economist by HashDefine · · Score: 3, Informative
  10. whats a cell phone good for? by greechneb · · Score: 4, Funny

    Who needs one when you just stay home and read slashdot?

  11. cell phone companies have advantage by pbranes · · Score: 5, Insightful
    I think cell phone manufacturers have a distinct advantage in this area because they have been working for years at making a product that is both user friendly, extremely small, and runs in real-time with no crashes.

    As phones become more intelligent, it only seems natural that phone manufacturers would have an easier time than microsoft because microsoft has to scale down its product, clean out bugs, adapt the software to be real-time --- all while getting new teams organized that have the ability to do this.

    Cell phone companies already have a large number of experienced exployees that have been meeting th ese necessary goals for years.

    1. Re:cell phone companies have advantage by interiot · · Score: 5, Insightful
      • they have been working for years at making a product that is both user friendly, extremely small, and runs in real-time with no crashes.

      To some extent, the stability has been somewhat related to the fact that past phones didn't allow 3rd party apps on the phone without being closely inspected and signed. Now that there are open development environments (eg. WindowsCE, Symbian), cell phone stability could drop to WinCE/PalmOS levels.

      And to be fair, cell phones aren't 100% stable... dropped calls are sometimes the software's fault, it's not always obvious that this is the case because it's easy to assume it's due to radio interference or cell tower issues.

    2. Re:cell phone companies have advantage by Anonymous Coward · · Score: 4, Insightful

      Also, remember that the safety aspect is very important regarding cell phones, as a single cell phone could take out an entire cell. I believe that is part of what has delayed MS's entry into this market. It is debatable if they have (had) the capabilities of developing safe small OSes.

    3. Re:cell phone companies have advantage by interiot · · Score: 3, Interesting

      Mod this up. I was going to mention this as well, I just don't know the extent to which recent radio protocols (eg. 2.5G, 3G) have taken this into account. From what I've heard, this is true of all 2G protocols (CDMA/TDMA/GSM/that chinese one), that a cell phone virus could jam up the networks quite a bit if they could have unprotected access to the hardware. Also, isn't this true to some extent for 802.11 devices as well though? (well, only 300' diameters could be jammed, but a similar idea anyway)

  12. 80% italy - why? by mo · · Score: 4, Interesting

    I just returned from Italy and I can attest to the 80% statistic. What totally blew me away was the fact that even very old people all had cell phones. Perhaps somebody can explain what factors cause people in one of the oldest western countries around to conquer the fear of new technology so well.

    1. Re:80% italy - why? by MartinB · · Score: 5, Interesting

      Italy has a pretty low saturation of mobile phones compared to (say) Finland, where the market penetration is over 100% of adults (ie there are more adults with more than 1 mobile phone than there are with none).

      And you wonder why the 2 globally dominant mobile phone operators in both consumer sales and network kit (Nokia and Ericsson) are Finnish...

      --

      The only thing you can accurately describe as "Scotch" is a sticky tape made by 3M. And it's

    2. Re:80% italy - why? by juuri · · Score: 4, Insightful

      Probably because like most of Europe it is far cheaper to put up cell towers than to have wires run everywhere. Americans tend to forget how subsidized our wired telephone system was.

      A quote:

      RIGHT NOISES. That's because Europe's fourth-largest economy suffers from an outdated, expensive telecommunications infrastructure...

      From: http://www.businessweek.com/2000/00_09/b3670213.ht m

      --
      --- I do not moderate.
  13. Never happen by TerryAtWork · · Score: 3, Interesting

    There's just no way the average guy is going to geek all day on the phone, for one thing.

    For another, people's thumb tendons won't let them....

    Only geeks will geek on the phone all day long and the cell doesn't do anything the pc doesn't do better, except walk around. And what kind of geek wants to walk around?

    What MIGHT happen is people can be their own rolling data centers with secure VPN to their home box, their own mp3s playing from home in their hifi earphones and a Dragon Ball Z type Scouter visual thingy to keep an eye on the important stuff with.

    All with provable open source very good privacy.

    However, not only is this not here yet, it might well be illegalized in the very near future....

    --
    It's Christmas everyday with BitTorrent.
  14. I was waiting for this war by abhikhurana · · Score: 5, Interesting

    I was actually looking forward to this war. Its been a long time since MS met its match and Nokia is more than a match for MS. Firstly Nokia phones are normally known to be reliable. A fact I cant say about MS software. Secondly Nokia makes these phones so they dont have to convince the phone manufacturers to join the bandwagon. Thirdly, in Europe, anti MS feelings are strong, so I dont think MS can make much of an impact in this market. Fourthly, all the major phone manufacturers have signed up for symbian. And its pretty easy to write applications on that too. Lastly, MS cant arm twist Nokia into carrying their software, mainly because a viable alternative exists. But knowing how MS operates, they may try to pull off something aka Xbox. Don't know how Nokia will counter that.

  15. Promise me something? by MacAndrew · · Score: 5, Insightful

    I'm no Luddite, I think all this innovation is fine and dandy (although, sorry, I do not salivate at the prospect of MS getting into my phone) ... but can anyone promise that I'll still be able to buy plain, simple, boring phones and basically do telephone calls? And don't need an engineering degree to operate? Please?

    This is from someone who misses corded dial telephones that never broke, or if they did the phone company swapped you for a new one. There were a lot of problems with that era, but some nice things, too. I still have a classic ugly-beige tabletop phone with a hard-to-turn dial and a REAL BELL. And even Alexander Graham Bell could probably use it in minutes.

  16. Hiptop equipment by davejenkins · · Score: 3, Interesting

    I've recently spent some time with Nokia engineers, and they all had the hip-top communicators. Certainly they seemed very functional, but these engineers all still carried laptops-- the hiptop stuff was really suped-up text messenging and maybe some email.

    The flipside were the belt-cases they wore to carry the things around. Definite geek-factor there, both good and bad.

    Don't get me wrong-- I think the correct approach is to keep adding things to phones rather than stripping things off computers. Open Source taught us that lesson. But the ergonomics and design 'cool' factor needs some work.

    1. Re:Hiptop equipment by bstadil · · Score: 4, Interesting
      Certainly they seemed very functional, but these engineers all still carried laptops

      It's an interesting point but makes little difference. These guys have probably carried laptops for years, as has a lot of other people. The market is flat.

      The issue at hand is where the growth is going to be, being the top dog in a stagnant market is fine but MS' valuation is based on growth. If they can't grow they will be relegated to the status of GM or Exxon.

      Nothing wrong per se but share prices will be 1/5'th of current.

      --
      Help fight continental drift.
  17. Change in Mission Statement by MartinB · · Score: 5, Interesting

    I think it was pretty inevitable as MS realised:

    1. In the vast majority of profitable markets, they're as close as they're going to get to achieving the old Mission Statement
    2. Once market saturation of PCs had occurred, selling into that market is no longer a cash cow, but a steady, lower residual income of gentle upgrades (now that the Win9x codebase is dead, and Office is as developed as it is, there is no good reason for most organisations to do more than patch and buy new licenses for new machines). So to keep stockholders happy (who remember are not paid dividends - it's all based on shareprice growth), they have to find another market where there could be double digit %age growth year on year.

    Unfortunately for them, they're entering markets with some extremely focused competitors who already dominate the space. In competing against Sony, Nokia and Ericsson (none of whom are likely to miss tricks the way IBM did in the 1980s), Microsoft are discovering what it's like to be on the receiving end.

    --

    The only thing you can accurately describe as "Scotch" is a sticky tape made by 3M. And it's

  18. Re:Yep... by Anonymous Coward · · Score: 4, Interesting

    Italy population: 57.3 mil
    Italy size:113,536 sq. mi
    US population: 278.4 mil
    US size: 5,539,224 sq. mi

    people per square mile:
    Italy:504
    US:50

    cellphones per person per square mile:
    Italy:403.2
    US:22.5

    # of cellphones:
    Italy: 45.84 mil
    US: 125.28

  19. Hmm by drinkypoo · · Score: 3, Funny
    from 'a computer on every desk and in every home' to 'empowering people through great software, any time, any place and on any device.'

    In other words, phase one (a computer on every desk and in every home) has been completed +/- 10%. Now it's time to go out and achieve 100% (+/- 10%) proliferation on portable devices.

    What's next, owning my brain?

    --
    "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
  20. Can't wait! by octalgirl · · Score: 4, Funny

    So now I'll have to CTRL-ALT-DEL to access my phone book.
    Will it ask me for an administrators password when I want to change the ring tone?
    And what will I do when I get an 'Ignore/Cancel' error message?
    I can see it now: mid conversation, and all of a sudden a message pops up 'There is a new security patch for your phone. Would you like to install it now?'

  21. Just make the damn phone work by toothless+joe · · Score: 4, Insightful

    Here's a partial list of my priorities when it comes to having a cellphone:

    1) Geographic range
    2) Sound quality
    3) Dropped calls
    .
    .
    .
    75) Playing tetris
    76) Browsing the web
    77) Checking e-mail

    It's a phone, for God's sake.

  22. Re:well duh by muyuubyou · · Score: 4, Informative

    It's not that. Penetration measures against population. That is, 80% of the Italians (some 80 million, not so small) own a cell phone. Italy, Japan, South Korea, Sweden, Finland, Norway, Spain, Netherlands, ... have more users than the USA per inhabitant.

    With such differences, it's not a matter of infrastructure. You can take only those regions with coverage and the difference would still be there. The problem is in the offer.

  23. The fight for digital (as in finger) dominance by circletimessquare · · Score: 4, Funny

    The fight for digital (as in finger) dominance

    Nov 21st 1952
    From The Historiconomist BS edition

    The convergence of slide rules and notepads is bringing the giants of the plastic and paper industries into direct conflict

    IT MAY look like a notepad, but the Orange PenNPaper, launched last month, is much more than that. With its lined pages, multicolored ink and spiral ring spine, it resembles other notepads on the market. But it has one far more significant feature: the lookup tables and conversion formulas on the inside front cover, indicated by the familiar-looking quadratic equation on the upper left side. For the PNP is the first "quick-reference notepad"--in other words, it does things a slide rule does. It is the paper industry's attempt to stake its claim in the new academic community of engineers and scientists created by the convergence of notepads and slide rules. It is no less than a declaration of war.

    --
    intellectual property law is philosophically incoherent. it is your moral duty to ignore it or sabotage it
  24. Microsoft is screwed... by Andy+Dodd · · Score: 5, Interesting

    They should've realized from the tough time they had against Palm in the PDA market that they should just not even bother with embedded devices.

    In the PDA market, size, reliability, and battery life are major factors, and those three have held WinCE devices back constantly - PalmOS devices have been able to do more with far less. (A 33 MHz Palm is far more responsive UI-wise than a 200 MHz WinCE device, and lasts far longer on battery.)

    Now they're not only up against PalmOS (There are some great PalmOS smarphones out there, such as the Kyocera 6035 and 7135, Treos, and the upcoming Samsung I500 - I don't consider the I300 to be great since it's a PDA first and not a very good phone.) and Symbian (All of the Symbian devices I've seen performed their phone functions very well and had excellent integration.

    What does WinCE have? It doesn't have battery life or reliability, and its hardware requirements mean that CE devices are almost always larger than their PalmOS and Symbian brethren. All three of these factors held CE back in the PDA market, but are even more critical in the phone market, where the Kyocera 6035 (One of the smaller smartphones) is considered to be monstrous in size.

    Every MS-based phone that has hit the market has flopped, and I don't see that changing anytime soon.

    I see Symbian winning the market for "basic" smartphones, and PalmOS winning the market for "power users" who need mainstream PDA capabilities.

    --
    retrorocket.o not found, launch anyway?
  25. What? by Sj0 · · Score: 3, Funny

    'empowering people through great software...

    What?

    Where are they going to get that from?

    --
    It's been a long time.
  26. Utility Vs. Toy by AmbientNeedle · · Score: 4, Interesting

    This suggests that all computer users are also phone users, and all phone users are computer users. However I'm a computer user, and I do not own a phone (nor do I have plans to). What do I need one for? My communication skills aren't hindered now.

    But I think the other side of the coin is more interesting. Think of all the whiny, screaming. 15 year old high school girls with phones on the oublic bus as they annoyingly try out every ring tone at maximum volume. Think about how they call every single one of their friends over and over again to tell them assanine gossip. Think about their tacky leopard print phone face covers.

    Beh. The phone in America has more of a "toy" feel to me than it does a "utility" feel. Does anyone have any insight as to how the folks in Italy feel about their phones? I can't imagine trying to drive there, I'd be yelling at every other bent-necked wheel-clutching gabber I saw.

  27. Re:Yep... by twisty7867 · · Score: 3, Interesting

    Actually, while this seems to be a reflection of the technological backwardness of the US - it's really a reflection on the failed socialist policies of European states. I used to work with a guy who had emigrated from Romainia - he's like, "of course everyone in Romania has cell phone - it costs hundreds of dollars and takes months to get a landline" - state telecom monopolies are not known for their quick service. Also, in Europe, people are accustomed to paying per minute for their local landline calls - concepts foreign to Americans who can secure a landline in a couple of days and feel entitled to unlimited free local calls. It's not much of a leap to get someone who is accustomed to paying $0.05/min for their calls to get them to pay $0.10/min for a mobile phone - but people who are accustomed to not paying for their calls at all - it's another matter.

  28. Wrong analogy by r_j_prahad · · Score: 5, Funny

    With Microsoft getting involved, it's going to be more than a mere collision... it's going to be a train wreck.

  29. Mobile, only when it makes sense. by matman · · Score: 3, Interesting

    I use a computer at work to code. I use my computer at home to learn (web, email, linux) and to play music. I could use a cell phone, sometimes, but most of the time, it's cheaper to use a normal land line. I got rid of my cell because I hated having to worry about how many minutes I was using, even for local calls.

    From a pure function point of view, I'd like a mobile device that lets me schedule apointments, take notes, do some calculator type things, chat on the phone, chat online, and play music from my music collection (by this I mean remotely - the files would be streamed). However, it would have to cost only about US $30 a month (including unlimited local airtime) or else it would raise my expenses and I would realize that I didn't need it.

    I really don't have any use for a web pad, but a laptop would be cool (really only to allow me to move around in my own house while computing). I would go for a laptop as my primary computing device (with an external monitor or projector for when I want a big display) and a mobile unit for the above described activities.

    When it comes down to it, if these features raised my monthly costs much (over 5%), I would not pay. I'm cheap, and all of that mobile stuff doesn't really improve my life (it would probably hurt it by making me work more)

  30. Have to change those commercials by dirvish · · Score: 3, Funny

    Can you hear me now...ahhhh shit, another BSOD!

  31. Might be necessity, not increased acceptance... by Gruneun · · Score: 3, Informative

    While we were living in Italy, we were one of the fortunate people, through military contacts, who could procure a land line quickly and with very little effort. It wasn't an "old world" area, but the group in charge of telephones didn't generally feel pressured to move quickly. I'm not sure how much has changed in the last 10 years, but I would imagine that it's probably much easier to get a mobile phone than a land line, so "acceptance" is probably a sign of convenience, rather than progressive thinking.

  32. Celullar is Dead: Long live Mesh-Networks by cosmosis · · Score: 3, Insightful

    As someone who worked for AT&T Wireless for years, I can tell you they are quickly running our of money. The centralized "cellular" paradigm is quickly running our of steam. It is simply not economically scalable to compete with very high speed ad-hoc "bottom up", software definted radio mesh networks that are the wave of the future. My opinion, is not only will telcos fail, but lets help them fail as fast as possible to make room for innovation by opening up more parts of the spectrum.

    As for Microsft's involvement, who cares? I can't see them either dominating this space like they managed to do with the desktop. Interoperability will be the key, just like on the net today. Linux alread has a foot hold in this market.

    Planet P - Liberation With Technology.