gPhone market study

Due to the nature of the gPhone, many paths of sale are available. These paths consist mainly of sales to the public via a non-telecommunications third party, or through a telecommunications company as part of a wireless service subscription package.

When selling to the public via an intermediary, multiple options exist. For a companies that specialize in video conferencing abilities, our device could be marketed as an extension to that service. By doing so, the videoconferencing company could add value to an existing product without having to do the research, development or manufacturing themselves. In addition, our device can gain traction in sales to the industries utilizing the videoconferencing technology. This would be a beneficial foothold to our company in the business sector.

When selling our device to the telecommunications companies, certain problems arise. In principle, this device is designed to replace the majority of the need for a telecommunications service contract between the telecommunications company and their customers. In the past, the telecommunications companies have responded by requesting that the device manufacturer (or in this case, the device procurer) lock out the abilities on the phone that would be in direct competition with services already offered. In this case, the ability to place calls via wireless connection over the internet would certainly be a feature the telecommunications companies would like removed before accepting the device as part of a standard offering. This is an unfortunate decision on both parties' behalf.

Due to past actions by the telecommunications companies, it may be difficult, if not impossible, to explain the device as an entry to a new business model (such as offering their own wireless VoIP), and an opportunity for the telecommunications company to grow into the WiMax/WiFi arena. With their infrastructure, they would have an easier path than most others to expand their offerings at the municipal level while building upon their infrastructure investment. An option would be to thoroughly explain the risks of not expanding into new service markets, while warning of non-telecommunications companies establishing the next big service network (for example, wireless Voice over IP) before the telecommunications companies are able to. An ideal example of this is the expansion of WiFi access to the San Francisco Bay community by Google, Inc.

Without sales support from the traditional telephone service companies, sales may be less than traditional devices in that sector. However, the previous example highlights an important point: the key to rapid sales may be in helping to establish a new market by working with those companies to develop a hand-held device on the user's end to correspond to the service offering on the suppliers' end. Again using the Google WiFi example, the gPhone adds value to the WiFi service already in development and deployment by Google. To call this relationship beneficial is an understatement. By marketing in an area where the device is highly usable in its primary purpose, we can have a much lower barrier to entry in those markets. Since the access is already there, the phone is immediately useful. On the supplier's end, Google benefits by not only adding value to their service twofold (computer and handset utilization), but they gain users in separate market segments as well. As it stands now, Google benefits from exposing free WiFi users to their computer (laptop) based products, primarily their search engine. By adding the users in a demographic comprised of mobile phone customers, we expand our user base tremendously.

In addition, the ever-increasing ability of Google's products to be accessed via mobile device gains a much wider audience. These points alone validate the gPhone, as we not only offer the services necessary to connect our device to the internet, but we also supply applications useful to users of the device. We are able to offer services like instant messaging, mobile email, directions (with a bluetooth-enabled GPS unit) and traffic, as well as ancillary tie-ins to such services as Picasa web albums (photo sharing) and YouTube (video sharing).

Rollout is suggested starting in the San Francisco Bay area and expanding the main focus of sales to other areas as ubiquitous municipal-level WiMax/WiFI services are deployed. One glaring problem with this partnership, however, is the lack of any internet-based live audio or video communications product by Google.

The leading company in this area is Skype. Skype is owned by eBay and boasts the greatest user base and (arguably) the service with the least barriers for users to get started with internet voice and video communications. With a simple download onto their computers, people can immediately begin speaking or instant messaging other Skype users for free, or call traditional phones for a small fee, charged monthly. In terms of a partnership with Google, this may not be a large problem. Google has no communication products that compete with Skype, and no auction products that actively compete with eBay. The lack of conflicting agendas does well to suggest that it may be possible to have a partnership with both companies, and in the case of conflicting offerings (such as instant messaging service), offer the user either service. (In this case, some stipend to Skype may be inevitable as the sheer amount of Google instant messaging users would most likely mean a large percentage of device users would prefer Google's instant messaging service.

With the primary service of this device sorted out (a partnership with Google and Skype to offer internet-based video and audio communications), the need remains to provide the users with the ability to use traditional mobile telecommunications service if they desire to travel outside the WiMax/WiFi coverage area. This isn't difficult, as the device has the traditional SIM card to enable a person paying for traditional wireless service to connect with their account information, if desired. In the case of conflict, such as when both WiFi and cellular service are available, the user can choose to prefer one over the other, but due to the nature of the device, the default setting should be to use the WiMax/WiFi connection whenever possible. The user may select to override this default, and would be made aware of their connection method via the external display on the unit.