Wireless Experts Explain Updates and Impacts From Wireless Deals
Wireless experts Steve Brumer, Partner at 151 Advisors, and RCR Wireless News Editor-In-Chief Dan Meyer shared and discussed updates in the wireless industry, including impacts by recent wireless deals in the wireless space.
Verizon Communications recently announced that it planned to acquire Vodafone’s 45% stake in Verizon Wireless for $130 billion. Microsoft also planned to acquire Nokia’s mobile handset division.
The development between Microsoft and Nokia did not appear to have any adverse impacts. Some expected the deal to happen a long time ago. Microsoft has had a very difficult time being successful in the wireless mobility space, having had multiple false starts. With Google also a player in the phone business and numbers not looking good for Motorola’s old division, it is unclear what conglomerates like Microsoft should do. Microsoft’s decision solidifies them as a hardware manufacturer, not just as an OS provider.
For companies looking to expand, like Vodafone, they should consider what it means now for them to do other things. Nokia and Blackberry are other companies that need to figure out where they are going. While Blackberry has the software side nailed down, getting into the mobile space is a big part of long-term growth.
Considering challenges facing the domestic mobile space, there is a big issue with acronyms. On an executive level, when talking about acronyms, companies should ask: what does it all mean? How do they use them? What do acronyms do for the specific company? Another challenge is education and understanding what a company needs and how the company is going to use the programs. A lot of fractions are trying to figure out where they play in the marketplace and what kind of market share they can have. From a hardware standpoint, new technology is rolling out and it is still a big part of what companies decide to do. From a software standpoint, apps are being developed very quickly; most are productivity-oriented. Innovation is also the main focus in app development and service offerings. Companies are also pushing to incorporate the cloud game and the big data game, especially in wireless and mobility. The average entrepreneur needs a niche because the game is for big players and big growth.
The North American market is unique to markets in Asia, Europe, and Latin America. The United States is seen as a place full of opportunities, good prices, and good revenue. Outsiders look at the United States as a huge place for the opportunity to sell their products at a fair price. It is contrasted to markets, like the ones in China, where the bottom has dropped out on margins. The North American market still offers decent margins and smart phones dominate the market. With huge channels, companies don’t have to worry about distribution or carriers. Billing on behalf programs, a safe environment, and acceptance of the cloud means the North American market is doing all of the right things to ensure success. The South American market is also growing, the economy is stabilizing, and there is more and more innovation. There is also growth in the Canadian market, one that is more mature, but there are still a lot of growth opportunities, especially in the wireless mobility space. With the right product and the right offering in Canada, a company can fit into the specific markets that dominate Canada and find success.