Google CEO Eric Schmidt made a comment speaking at Stanford’s School of Business a few weeks ago that has rattled teacups all across the communications industry. Schmidt commented that he could see a future that included free cell phones provided to users who accept watching targeted advertising.
His observation was that mobile phones are adopting more and more characteristics that bring them closer to handheld computer status. Their functionality has expanded to text messaging, email and web access. Schmidt referenced research that predicted a rise in cell phone use to as much as eight to 10 hours a day for purposes of talking, texting and using the Web. With a device so thoroughly integrated into personal daily life, advertising becomes a viable form of revenue – and hence, a source of subsidy for free phone distribution.
With a nod to reality, Schmidt observed that mobile phones may never be completely free. He noted that newspapers have had a financial model based on advertising for a century, but have never been free – although they are certainly inexpensive. Actually, some of the more successful newspaper ventures remaining are the free...
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