Saturday, 12 November 2005

Bastardcast Nov 12 - Violated Halo

Jimmi Jammes - Violated Halo

This is track 4 on the new Depeche Mode Violated compilation. A mash of DM's Halo with bleeps and breaks from other DM tracks (can you spot them all?)

I'm not familiar with Jimmi's work, so I'll be checking him out at djjj.tk.

Categories: , , , , , , . My Odeo Channel (odeo/d3ddc2a176243581)

Thursday, 10 November 2005

Which South Park character are you?

No, not some lame quiz, but a tool to design a South Park character. Here's as close as I got to my fair countenance...

Not a bad likeness. I particularly like the mooning Cartman T-shirt. I wonder if I can get Cafepress to make some?

Go to Das Planearium to build yours.

Tuesday, 8 November 2005

Espion International

Interesting brace of announcements from Drew Burdsall's company recently:

  1. ESPION International, INC. Secures $1.1 Million in Funding
  2. ESPION International, Inc. Shows Strong 2005 Sales Growth

It seems that they've brokered a deal with Bellwether Venture Capital Fund I, Inc. and Bellwether Advisers, adding one Ryan D. Smith as President and board member.

Saturday, 5 November 2005

Mobile Operator Subsidies will Decline

In some countries, the least expensive way to buy a mobile phone is with a contract. Even if you're Paris Hilton. When one adds up the cost of a 12 monthly payments, the phone often still costs a consumer less to buy than they could buy it without a contract. Look at the secret deals a mobile operator will often offer at the end of a contract to customers who are quite happy with their current phone. Threaten to switch operators you might get offered a contract which is effectively free for the following year.

The reason, of course, is operator subsidy. The operator sells the consumer a phone for below cost price -- sometimes even free -- in order to lock them into a 12, 18, or 24 month contract. Some 30% of the published monthly contract price is accounted for by subsidy clawback. This is a classic razor and blades business model.

Operators have huge buying power and so can source the devices for far less than a consumer would pay. Operators will also usually ensure that the phone is locked to their network, making it difficult for a consumer to switch service to another operator -- known as a SIM lock. Such subsidy business models are common in countries like the UK, Germany, and to an extent the US (at least for GSM operators). They are however illegal in some other countries.

However, this is changing. Although many consumers are happy to upgrade their phone every year -- essentially as a fashion statement -- increasing numbers of people are wising up to the way the industry works. They've realized that they can pay far less by keeping their phone and negotiating a lower tariff. This shift has been enabled by two key factors:
  1. Back-street unlockers -- the ability to remove the SIM lock, allowing the user to switch operators.
  2. Number portability -- the ability to move to another operator yet keep one's number, which is a strong bargaining chip.
In the future, subsidies will become smaller and much less common. For example, in the UK we've already seen subsidies disappear for phones without a contract (i.e. pay-as-you-go). Contract subsidies are sure to follow over the next few years.