Respect the iPod, and tame the iPhone

I have been thinking more about the iPod being the dominant MP3 player, and how other companies would perceive the iPod majority with respect to the iPhone. For example, most cell phone makers are attempting to make phones with touch screens, and cell phone providers are obviously worried that the iPhone will become the dominant phone; even AT&T is worried, that's why AT&T is also carrying competing phones. With a Verizon accepting AT&T's standard for 4G phones, it is expected that the 4G iPhone will run on Verizon as well as AT&T (whether the 4G iPhone will be unlocked is an entirely different issue). Most of these maneuvers I interpret to be to attempt to move the Cell providers into a position to profit from the iPhone. AT&T is competing against the iPhone because it does not want the iPhone to be the majority standard when its contract runs out.

I have noticed an increase in advertising for cell carriers recently, which can be attributed to the iPhone causing ripples in the cell industry. Also, no cell provider seems to actually care about its customers; they all seem determined to sell more and to gain subscribers. I think that all that it would take to cause a reform in the cell phone market is for one company (possibly one bidding on the 700MHZ spectrum) to focus more on caring about its customers instead of focusing on causing them pain. Such a cell phone company would rapidly gain subscribers, mainly through word of mouth marketing. However, the massive costs incurred in setting up a cell company would require a company with large amounts of money already.

Astute readers may have conjectured that Google would be an optimum company to do this. I believe so, as it would provide an optimum method of cash flow for Google (subscriptions). Google may also be able to subsidize the costs of running a cell phone network by running ads on its phones. This would be an optimum way to do cell phone services, as it incurs less cost to the consumer. I would imagine Google offering cell plans with data starting at about $40 per month. All that Google would have to do is set up a high speed data network and then create and run a Google VOIP. You would also be able to use cell minutes with your computer in this system.

There is much competition in the cellular market at the moment, and I see a possibility for a company with a lot of money to make a lot more money through setting up a cell network. All that a company would need to do is see that hole in the market and pounce on the opportunity.

EDIT: It has been pointed out in the comments that the iPod is not a monopoly, it's a majority. The text of the entry has been changed, and I am sorry, but I sometimes think one thing and write another.

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