We’re edging closer to the U.S. deployment of the LTE 4G mobile broadband technology by MetroPCS, AT&T Inc. and Verizon Wireless, while WiMAX continues to roll out. While devices will initially be dongles and handsets, a whole slew of consumer electronics – and new business models – will change the role of the operator within the mobile broadband value chain. VON sat down with Samsung’s WiMAX and 4G guru, Tom Jasny, to talk about the open-device ecosystem model and what it means for carriers.
VON: The 3G emerging devices opportunity in certain cases is placing the device-maker in the role of controlling the end-user relationship, rather than the carrier. Will this become the norm with 4G?
Tom Jasny, Samsung’s vice president of wireless and broadband networks: We are specifically seeing these dynamics building in the ecosystem, led by OEMs becoming much more aggressive in making go-to-market deals with retailers. And there’s no question WiMAX and 4G will spur that along. Carriers will have to take heed of the new business models emerging, in line with Dell selecting us for go-to-market. Everyone’s connected devices portfolio will have a hybrid selection of strategies.
When the connectivity just runs in the background of a connected device, how does that open up opportunities for carriers when they fear becoming dumb pipes?
TJ: We saw in 2007 when we enabled the iPhone that things were going this way. Even though Apple is the brand when it comes to iPhone, AT&T certainly hasn’t suffered. That gave all of us a sneak peek of how that would work, when an OEM deals with the carrier as just one of many enablement partners.
We also think the Kindle shows the potential of the model. If you ask an end user who provided the access for that device, they wouldn’t know. But carriers are happy because they have another channel of distribution for their connectivity where they’re not involved in the sales process, which is expensive. Customer acquisition is expensive.
So, in short, they can sell more. And they should be very happy about that.
Samsung is a device manufacturer with deep experience in Korea providing CE for WiMAX networks. Do you see the success of WiMAX CE there being replicated in the U.S.?
TJ: Like every new model there are growing pains. So we welcome these initiatives that generate innovation and growth in this channel. It’s been eye-opening for many people in this industry, to see 3G embedded devices take off. Those types of the initiatives only drive growth in the ecosystem for 4G.
The iPad has an interesting wireless connectivity billing model. Is that a bit of a blueprint for WiMAX and LTE gadgets?
TJ: On-device provisioning is exactly the sell model that will allow everyone to reach new users. Consider the iPad pricing model for 3G — users pick a prepaid plan right on the device. Carriers and vendors realize that they have some gaps in their portfolios when it comes to offering pricing for different types of users for connected devices and those types of strategies help fill them.
