Phone Providers are Officially "On Notice"

if you missed the deluge yesterday, you must have been in a cave.  i’ll recap.  the 3g iphone is here and it’s only $200.  service and hardware providers?  you’re officially on notice. you have a month to figure your shit out.

what does that really mean tho?  lemme offer a couple bits of advice.

  1. do you make smart phone hardware?  you are no longer allowed to sell it for more than $200.  gone are the days of the $700 treo.
  2. do you run a cdma network?  you’re screwed.  the only way you can compete now is with a cheaper data plan AND cheaper smart phones.

ignore this at your own peril.  doing so will result in a mass end-of-contract exodus.  period.


p.s.  apparently the world is already going to hell in a handbasket for verizon and sprint.  o2 is actually giving away the iphone for free.  others in the u.s. will surely follow.

UPDATE: a fleshed out version of this on business week:

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