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not everything that shines is made of gold...


Over the last few days an interesting story has developed in the US marketplace, namely Vodafone's bid for AT&T Wireless and then Cingular's counter-bid (Cingular won today). The economist has a couple of interesting articles on it (see Who's the real winner? and Vodafone's dilemma), noting that AT&T Wireless might be less of a prize than one might think at first sight. Problems are not only related to technology integration (AT&T Wireless runs two networks, on different technologies) but also to cost and the real potential of the US market.

The technology is moving so fast that business models are also very susceptible to shifts (e.g., is it content they're selling? Bandwidth? Hosted services? A platform? All of the above?), and so making it much more risky to potentially get stuck with old-to-new rather than new-to-next generation transitions. In my view, Vodafone might have actually been lucky in losing this bidding war. It's not just subscriber numbers that count.

Plus: some good comments on the topic over at Wi-Fi Networking News.

Categories: technology
Posted by diego on February 17 2004 at 5:03 PM

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