Ericsson has now said in public what many have been saying in private for some time, that the mobile internet just hasn’t happened with no one finding a compelling application for mobile data services.
Ericsson produced some unexpectedly bad results for Q3. CEO Carl-Henric Svanberg, said the poor results were partly caused by wireless operators backing down on plans to upgrade GSM networks to 3G networks.
When that reluctance is factored into an operator mindset which is increasingly turning to maximizing revenues from existing networks, e.g. by sharing their networks with other operators and by renting them out to virtual service operators, it is clear that the operators’ appetite for new equipment is diminishing.
Clearly the operators don’t have a plan for increasing public demand for mobile data services. But it could be that the new phone manufacturers will do that for them.
Apple with YouTube and music services on the iPhone, and the upcoming GPhone from Google which will be optimized for mobile search.
Maybe the next phase of the wireless industry will be driven by the phone-makers, not the operators.
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