Sunday, October 28, 2007

Support for Pay-Per-Use Wireless Gadgets

(this post is NOT about pre-paid phones, please read entire post :)

I don't understand why only certain cellphones can work on Pre-Paid phone accounts. The cellphone companies can track the minutes for my "monthly" phone (because they charge me for every one on my monthly plan), they can deactivate my "monthly" phone if I don't pay my bill. So, why couldn't they just as easily deactivate my "monthly" phone when my balance reaches zero? Is it some kind of conspiracy by the cellphone companies, or is there some real technical reason why you can't use any phone with a pre-paid account?

However, even with a pre-paid plan, you are still kinda locked into a type of recurring expense even if you don't use the phone because you have to keep buying new minutes so all of your unused ones don't expire.

By charging any type of a recurring cost, even when you don't use the cell network, in my opinion, severely hampers the feasibility for some really cool gadgets that could use the network.

For example, there are currently a few GPS "Tracking" devices on the market that allow the device to transmit it's location via a cellular network to your PC or to another cellphone. But, because these devices require their own "cellphone" account, there is a monthly fee associated with such an account, which makes using such a device very expensive.

Wouldn't it be cool if there was a way to avoid monthly charges, and only be charged a small fee each time a wireless device actual uses the network? I think it would be VERY cool.

I have a feeling the only real reason there are monthly/recurring charges is to simply to fill the pockets of the cellphone companies. But, like with the issue with certain phones only working with pre-paid accounts, there may be a technical reason why current cellular devices need a monthly account associated with it. If so, then now is the time to voice your desired for a new network that doesn't require monthly fees.

If you haven't heard, the FCC is about to auction off a new spectrum of frequencies to be used for wireless devices such as cellphones. This band of frequencies is currently being used for "analog" over-the-air TV channels. But, soon they will become available due to the FCC's mandate to go "Digital" in the near future which will free-up the space the analog channels used to use. Google, along with the typical cellphone companies will be bidding for these new airwaves.

Since this 700Mhz space is for a brand new network, there currently are no hard-coded rules and protocols yet. So, now is the perfect time to inject a new idea into the first stages of planning. Thus, I propose that the FCC mandate that the new 700 spectrum should, among other things, support "pay-per-use" wireless devices. Meaning, that there will only be a cost when a device actually uses the network - no monthly or recurring fee is needed.

I feel that once the "monthly/recurring" fee is removed from the equation, the possibilities for a new breed of wireless gadgets is limited only by your imagination!

For example, many animals die in "humane" traps because the pest-removal company has no idea if there is an animal in the trap or not, so they tend to only "waste" their time once a week to check the traps - often finding the animal dead due to starvation or exposure - not very humane :( Now imagine a new type of trap that could send an SMS message to the trapper the split second an animal is caught in the trap - and it would only cost the trapper $0.10 to do so! Even if such a trap costs $50 more for this "SMS Transmitter". That cost is quickly negated by the time it saves the trapper from "wasted" trips to empty traps - and it now facilitates a quick retrieval of the animal being alive :)

Another idea could be some sort of "vital monitor" that would send an SMS when the vitals of the person wearing the monitor go outside pre-set limits.

Another example - a vending machine owner won't have to waste a trip to check if one of his machines needs filling up. Instead, the vending machine itself could just send the owner a text message when it's supply is getting low. And it would only cost ten to fifteen cents to do it! No longer are they required to spend $20-$30 for a landline telephone line to serve this purpose.

Another idea I have is for a "vacation home" alarm system that doesn't require a $25/mo land telephone line to notify the alarm company when the alarm is triggered.

Or how about a water and/or temperature sensor for your vacation home that will only cost you ten cents to tell you when the monitor detects water on the floor or too low of temperature!

What about a car alarm that text messages you when your car has been hit or being broken into without having to pay a $20-$40/mo fee for a separate wireless account just for the sms transmitter.

How 'bout a device that you place into rental equipment, so if the renter doesn't pay there bill, you could simply send a special text message to the device and it will prevent the equipment from working. Then when the renter calls you five minutes later to complain, you can accept his credit card number over the phone and send another message to the device to turn it back on ;)

As you can see, if there wasn't any monthly/recurring fee required, all sorts of cool ideas for wireless gadgets now become possible.

The phone companies are probably loving the 10-15 cents they make per text message that all the kids are sending these days. Why would they want to pass on another opportunity to make a bunch more on the messages that these new wireless gadgets will send?

I envision that there would be some type of authority in which you would create a "Wireless Device" account with, similiar to an EZ-PASS account. With this account, you could:

1) "Register" your wireless device's Serial Numbers so the network company knows who to charge when one of those devices use the network.
2) Add money to the account to be available for the network to deduct from when a device uses the network.

Another method could be that when you purchase one of these new "network gadgets", the price for the gadget could include credit to use the network for a "typical" number of times. In my above humane trap example, maybe the $100 price of the trap includes "50" alerts credits, meaning that it can be used out of the box to notify you up to 50 times before you need to open and replenish a "network credit" account.

But, in order for this idea to be realized, it needs to be included in the design of the new 700 spectrum. So, if you like this idea, please post your support for it using the "Comments". Hopefully this thread will get the attention of the FCC or some of the bidders so they can include this new "pay-per-use" model in the design for the new spectrum.

6 comments:

Sébastien said...

Hey John, it seems like Parrot is doing such gadgets with onboard cellular capabilities (see their new digital frame)

John Cody said...

Hey Sébastien,

Great example of a wireless gadget!

But, to use that particular device you need to have a $30-$40/mo cellphone account just for the picture frame! Thus, it's only practical for people with money to burn.

What I am proposing is a new network in which devices won't need a monthly fee, and only charge a small fee when the device actually uses the network.

So, with my proposed network, it would only cost you $0.25 each time you send an MMS to the picture frame - much more affordable for the average person.

Anonymous said...

The network does not have anything to do with the capabilities you talk about. It all has to do with the billing system the message is attached to.

John Cody said...

Hi cparte0,

Well, if it's only a billing issue, then my request goes out to all the current cellular phone companies to add a new "pay-per-use" billing model where there are no recurring monthly fees or expiring credits so gadgets like I describe are feasible.

However, if there is some technical reason why this can't be done, then that's why I hope the FCC will mandate a "pay-per-use" model to anyone buying the new 700 spectrum.

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