While analyzing the future of WiFi against the expanding 3G networks, it seemed curious that AT&T recommends using WiFi while abroad, and even Apple seems to really love WiFi instead of EDGE.
My theory is that Apple is itching to release the next generation of the iPhone without carrier lock-ins such as the current AT&T deal. They know very well they can sell a 3G version with a better camera and maybe GPS for $800 to $1000 in Apple stores, and people will queue to take them off the shelves, to then stick whatever SIM card they want in it. They could then be smart and have per-carrier features like Visual Voicemail, which doesn’t bind them to the operator, but gives subscribers a slight edge over “plain” iPhone users.
Apple will continue promoting WiFi on the iPhone and iPod touch for two reasons: it’s way cheaper and way faster to get iTunes content onto them over WiFi (a couple of movies will bust most 3G “flat” fee plans, and take eons to download). With the reported ‘edge cache’ for iTunes media deployed at Starbucks, for example, it only makes sense to promote WiFi as the access technology of choice.
WiFi also knowns no boundaries, and is the only cost-effective way to use data while roaming abroad – remember all those horror stories of four-digit roaming data bills after the iPhone was launched? Would never happen using WiFi. With the new Exchange integration coming with firmware 2.0, many more business travellers will want to tap into WiFi while abroad without having to pop open the laptop. In my opinion, it all points to a long life for WiFi, alongside mobile access technologies such as 3G and WiMAX/LTE.
$800 – $1000 for a phone, some people have more money than sense!
Well, at current exchange rates, that’s what we pay in Euros for a new top-of-the-line phone. The N95 unlocked was almost 900 Euros (~$1400) when it first came out.