ABSTRACT
Consumers and companies are adopting technologies that combine the most important
communication innovations since television: the mobile phone and networked computer.
Current global projections state that more handsets than personal computers (PC) will be
used in Internet access by 2006 (Accenture, 2001), and wireless networking may soon
provide a limitless range of services for business, shopping, security, travel, health,
entertainment, and convenience. But the advent of mobile networking presents
high-stakes issues for telephone companies, device makers, system providers, software
producers, media firms, and marketers. For example, telecommunication (telecom) firms
will spend over $200 billion dollars, much of it borrowed, on spectrum licenses and
network backbones for faster wireless networks (Wireless, 2000). Proceeds from the
voice business will not cover these massive start-up costs, so other revenue streams must
be explored (Mathieson, 2001). Falling prices for telecom securities and lower bids in the
latest license auctions show that concern is growing over the amount of nonvoice income
mobile networks can produce (Nakamoto, 2001).
