Connected or Hyperconnected?

Harold Hotham   February 10, 2009

www.comparevillage.ca

 

In today’s communication environment things are developing at what seems to be Warp 9.  DSL Broadband capabilities have moved to mobile devices so that one can “be in touch” at any time and any place in the world.  Canada is on the short end of this development falling well behind the rest of the globe, but it is here and it is becoming more common.  The Apple iPhone 3G has certainly led the revolution in connectivity.  The problem for Canadians of course is the usual high costs associated with communications; again another failing of deregulation that many consider collusion between the large telecom providers.  Saying it is one thing, proving it is another altogether.  One thing is certain, Canadians are paying among the highest rates in the world for wireless technology.

 

The other question and more likely the more poignant one being asked is being answered by consumers in the same way; “Why?”

 

It is a good point.  The vast majority of cellular and wireless usage is by the consumer.  It certainly exceeds that of business use.  The consumer may very well have all these bells and whistles on their wireless devices but are they making use of them?  Our information is that they do not.  They see the costs as excessive to their already expensive communications.  Even business is reviewing its expenditures on wireless technology from a value added position.  In other words, “Am I truly getting value for the extra cost of this technology?”  With a shrinking economy, such luxuries are usually the first to come under the axe of cost cutting both in the commercial and private sectors.  Watching movies on your wireless device is now becoming very expensive and with job uncertainty, people are thinking twice.

 

So, who does need it?  It would be a safe bet to say that those engaged in international trade and business activities are almost obligated to subscribe to these services.  Their world works 24/7 globally and an hour can mean missed opportunity and missed profits.  They really don’t have an option.  Does the consumer need it?

 

This is a much more difficult question to answer but first before nodding yes ask yourself how fast do your emails get responses on your computer?  Are those responses critical to your financial well being?  How often does a life or death emergency occur that requires your immediate attention?  How many of your voice calls are absolutely essential; to the point that if your wireless device were shut off, the call would be made on a land line?  How many text messages are similarly important?  If you are like most people you can answer that very few or even rare to the above questions.

 

So why haven't the telecoms begun to seriously upgrade their systems to meet the hyperconnected person?  They can see that sales will not justify the expense.  They also see a shrinking economy with falling prices and they realize that such capital expenditures will become even more expensive.  The question to be answered is this.  Will they be ready when the economy recovers and the needs by both consumers and business are increased.  How will they deal with what could very well become an infrastructure overload?

 

It will be interesting to see the developments over the next few years.  Will consumer demand overtake the negligence of the telecoms in their planning?  This writer would not be surprised if this is exactly the case.  It is a formula that will keep prices high and consumer complaint in check as they take their time to upgrade for consumer demand.

 

Make no mistake, being connected 24/7 is coming.  The concerns about development, deployment and cost are very real today.