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Posted: 12:00 a.m. Monday, Nov. 26, 2007

Sprint settlement heralds lessened carrier control

Here in the United States, cell phones are controlled by the Big Four carriers (Verizon, AT&T;, Sprint and T-Mobile) with an iron fist. But that may soon be coming to an end. Sprint has entered into a new settlement that will allow you to keep their phone after you finish your contract. You can then go to another provider that runs on a compatible network -- such as Alltel and Virgin Mobile -- and you won't have to buy a new phone!

The old business model where cell phone companies tie you into their phone and their network makes no sense. Most of the world runs on a network called GSM. We are actually one of the only countries with two competing networks -- GSM and CDMA. Meanwhile, public revulsion over the Apple/AT&T; iPhone deal is really helping to bring about a new day in the industry. Isn't it funny that with all the talk of smart phones our mobile devices are actually much dumber than the phones people use overseas? In fact, Verizon takes smart phones and dumbs them down on purpose to disable functions that they can't figure out how to monetize yet! So Clark loves the outcome of the Sprint lawsuit because it will really help open things up. Soon we'll buy phones like we do any other piece of technology. You don't buy your computer from your Internet service provider, do you? No, you buy it elsewhere and then hook it up. Cell phones will one day be like this.
 
 

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