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Mobiles: commodity, utility, or luxury, in the wake of the credit crunch?

By: , IntoMobile
Monday, November 10th, 2008 at 4:53 PM
Might we see a return to using the Payphone?

Might we see a return to using the Payphone?

With the tumultuous financial markets that seem to have taken over the news recently, come a whole cavalcade of implications – some large, some small. For a lot of people, it brings a time to re-look at their expenditure, because as the prospect of getting a wage rise decreases, the need to look at costs becomes potentially more important.

The cost of running a Mobile device could variably be described as one of the larger monthly expenditures, depending on what type of user you are. If you are a contract user, with an high-allowance tariff and an expensive handset, chances are you are paying a decent amount of money each month. Perhaps if you are a PAYG, with a budget handset, your monthly expenditure is somewhat lower.

Either way, my question is this – will Mobiles be considered more and more as a commodity (and associated utility) rather than a luxury, going forward? Have the heady days of replacing one’s mobile device frequently, and being locked in to long, expensive contracts passed (or soon to pass, once renewal dates come up?).

I wonder if perhaps both scenarios could become true in fact – whether that middle-ground of a reasonably-priced Mobile/contract could be eroded, so that we are left with something more polarised, like low-tier/PAYG, and then (super-)high-tier/unlimited contract?

With the advent of super-expensive Mobiles (Nokia 8800 Carbon Arte, Motorola Aura, to name but a few) continuing, will these devices become even more niche, whilst the previously ubiquitous low-tier actually rise up in to the mainstream?

With the doom and gloom predictions in the press that many more people will be feeling a harsh pinch as the credit crunch takes hold, I’d suggest that there are a lot of people that will be looking at their Mobile usage, and starting to consider it as a utility that they need to “cost-down” as soon as possible….

[Image via: payphones.bt.com]

About The Author

Ben Robinson

Ben is a 10+ year veteran of the Mobile industry – starting his career when SMS was a still a relatively new concept for most people (!), he has now consulted on everything from bleeding-edge Mobile content, to the next-gen accessories you might view it on. As a result he has a broad and deep knowledge in numerous areas of Mobile – from network operators to device vendors, to infrastructure and middleware vendors (not to mention content delivery) – and has worked for companies in all of these areas! He is based in the UK, a hotbed of activity for mobile, and recently became a father for the second time – as oppose to in his younger years when he was happy spend time tweaking all manner of mobile devices to 'nth' degree, he now looks for services and hardware that provide the most efficient, compact, and reliable improvements to his already manic life! It’s his opinion that Mobile solutions should be there to help to make your life better – if a particular solution (be it service or device) isn’t doing this, he believes you need to ask the very important question of why you continue to use it... His focus at IntoMobile is mainly on Mobile content, services, and infrastructure, particularly as regards the UK market – and with the occasional look at devices. Additionally, using his extensive experience in the industry, he will provide commentary on the industry at large, with regular (and hopefully thought-provoking) articles.