Macbraughton Culture – Creativity – Conflict

Canadian Market Just Doesn’t Get the Nexus One Google Phone

I'm not claiming to be an expert or anything, but I did spend a good six months following the HTC Hero story before it came to market. In case you missed that one, its release was a watershed moment in the history of the Android OS. Many people have agreed that it was the first device to really compete with the iPhone head to head and showed that Google's foray into the smartphone realm was more than just a half-baked afterthought.

I haven't followed the Nexus One story much at all, actually, until now. But I believe that it makes the Hero seem like just another iPhone rip-off. That's because what we are getting with the Nexus One isn't just another smartphone, it is a whole different way of relating to the telecommunications industry.

Many people are still unaware of VOIP (Voice Over Internet Protocol). This is a telephone service that works just like your traditional landline, except instead of using an analog signal (the kind used by Alexander Graham Bell himself in the first phone call), it uses a digital signal that is transmitted over the internet. The great advantage of this technology is that traditional phone lines can still be used, but using digital technology increases the bandwidth of the transmission. In other words, you don't need an analog signal anymore, all you need is an internet connection (whether that be DSL or cable or satellite) and you can make and receive telephone calls.

This technology has yet to make its way into the cellular market for many reasons. The main one being that its introduction would seriously hurt the bottom line of cellular companies. Just think, with VOIP on a cell phone you don't even need a "Talk & Text Plan". All you need is a data plan. With a data plan you can use Skype, or Google Voice or some other technology out there that we haven't even heard of or hasn't been invented yet.

The Nexus One is pushing the limits by going for the jugular of the cellphone industry. That main vein is the outrageous prices that the industry places on consumers for traditional services that have basically been rendered obsolete by the emergence of new technologies like VOIP (don't even get me started on the text-message thing, which is an even more outrageous story of manipulation and incredibly lucrative for the entrenched powers).

The reason that most people don't know about this in Canada is obvious. Rogers, Bell and Telus have the highest rates of any cellular companies in the world. Anything that would jeopardize their cartel is blasted in the major press because they not only control a lot of the media directly, but also indirectly through advertising. They aren't going to be paying the Globe and Mail or National Post or even the Toronto Star for advertising if their reporters are telling the public how they are being ripped off (much less reporting those stories themselves).

This missing puzzle piece in Canada, to really make the Nexus One a game changer in this market, will be for some Canadian Cellular company to offer "data only" cellular plans. What that would look like is that you buy a sim card from a cellular provider and pay for a data plan only instead of a talk and text with data which is the current norm. This really isn't that different from buying a USB stick that you hook up to your laptop, it is just that we still don't think of smartphones as handheld computers. The reality is that is just exactly what they are. Millions of dollars in advertising revenue are being spent to keep you and everyone else in Canada from realizing this (and to be fair, it is happening in the US as well, but at least T-Mobile is already on board with Google).

I have an inkling of hope that Globalive will be offering this type of service through Wind Mobile, but only time will tell. As for me, I'm hoping that Google offers the Nexus One directly to Canadian consumers sooner than later, I want one! How about you?