(Credit: James Martin/CNET)
The mobile world moves in a breakneck pace, and it's difficult to keep up--even without the technical lingo most industry insiders throw around. And they do love to toss individuals terms around.
This week, I explain why everyone keeps talking about ecosystems, and why the heck they're so vital that you the wireless industry now.
So for some light reading, here are several terms (and definitions) commonly used by telecommunications experts who assume everyone knows them.
Ecosystem: We're not talking about nature or biology 101. Ecosystem is really a broad term roughly defined as any group of interlinked organisms, or within the tech sense individuals or companies. Specific to the wireless world, there's more attention positioned on a mobile operating system's application ecosystem.
When it comes to ecosystems, the larger it is, the better off you are. There's a reason why iOS and also the iPhone and iPad dominate--beyond the marketing hype machine that is Apple--it's the actual apps. As with nature, you have to foster the growth of the actual ecosystem, either by attracting developers through your large customer base, or in some instances paying for developers to get key apps on your platform.
It's additionally partly why BlackBerry, which has a much smaller ecosystem of developers, has struggled in the last year. Developers had found Research In Motion to be one of the least friendly companies to utilize until it changed its tune over the last year.
For Google's Google android, a free open-source operating system, an ecosystem means more than just designers. It also includes the ranks of handset manufacturers and consumer electronics suppliers that build Android phones and tablets. As HTC's chief executive, Peter Chou, stated recently, "It's not the operating system, it's the ecosystem. "
The consequences of the small ecosystem can be dire. Hewlett-Packard had a tiny following for it's WebOS platform, leading to its demise.
Subsidy: In the wireless world, it is how much money a carrier is willing to eat when selling a smartphone to customers. Carriers such as AT&T and Verizon Wireless buy the iPhone from Apple at one rate--a significantly higher one--and resell it to consumers in a discount.
Why would the carriers be so generous? It's certainly not simply because they're feeling charitable. These subsidized phones come with strings in the type of a service contract. In exchange for the discounted phone, you are typically locked right into a one- to three-year contract. Carriers make back their subsidies--and more--over the life of this contract.
The carriers' willingness to subsidize a phone is one factor that determines the cost you see in the stores. It's partly one reason why RIM's Rim Bold is selling for $249. 99 at some retailers, and a head-scratching $299. 99 from T-Mobile.
MiFi: Some marketing genius slapped together the popular terms "mobile" and "WiFi" and created MiFi. MiFis are small cards that are able to tap into a cellular network and produce a portable WiFi hot spot.
The hot spots are growing increasingly common, and therefore are handy because they can connect multiple devices to one network. While 3G is definitely an option, the slower connection means they aren't ideal for data-intensive activities. But that's changed using the introduction of 4G-capable MiFis.
AT&T is set to begin selling its very first 4G LTE MiFi today, though its network isn't up and running. I suppose it pays to be prepared.
"Explore options": This is another bit of corporate jargon which has found itself increasingly in the wireless world. It's code for wanting to market the business.
Most recently, HP used the term when talking about the near future of WebOS. I wouldn't hold my breath. That operating system, despite getting lots of critical love, isn't going to find any buyers.
Motorola Mobility recently used a variation from the term regarding its patent portfolio, saying it is would look at it's "strategic opportunities. " Of course, it found a much bigger opportunity when Google decided to buy the whole company for $12. 5 billion.