Jimmy Durante was a popular performer when I was a kid. One of his most frequent lines was the complaint: "Everybody's getting into the act."
I'm working with an Irish company, Roam4Free, helping Pat Phelan with his blog strategy. In the past few weeks, not one, but two other companies have made interesting launches into this same reduced-cost cellular space. To make matters worse, both JaJah and Rebtel seem to have great products. To make it even more ironic, I have friends in senior positions at both companies as well.
The thing is that at this point in history, Roam4Free, JaJah and Rebtel don't seem to be competing. They are each too new. The opportunities far too great. none knows what the future brings and two or more of them may all end up playing on the same team as well as the same field.
So who are the wins and loses, when you look at the newly crowded playing field? Well the incumbents lose, because their entire business models depend upon high rates to customers. Then they use a portion of their revenue to support government lobbying efforts that protect them. They will remain powerful for a while, but these three companies, plus VOIP players like Skype will bypass the many incumbent-imposed barriers and get to users who greet these new cheaper, better services with open arms.
Skype and other VOIP carriers will also lose I think, because most of us really don't like to be tethered to our computers when we talk. We prefer the mobility of cell phones.
There is a huge pool of winners here, however, even if all three of these new players fall by the evolutionary wayside and that is the end user. Cheap-to-free services always benefit users as do disruptive competitive challenges.
This is nice for people in economically developed countries. This is a huge liberation to people in developing nations. My client Pat has blogged about his strong connection to Bangladeshis working in Ireland who miss their loved ones back home. Very Cheap Cellular allows them to stay connected. It allows people in these countries to have greater access to the rest of the world.
This is a good thing.
