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New Business Model for Wireless Content

April 26, 2007

Engadget has described the Amazon e-book reader Kindle as having EVDO wireless capability for downloading content. On the Engadget podcast, they discuss how unlikely it is that people would pay for a $40/month EVDO subscription just to download e-book content.

Isn’t the more likely scenario that (i) the Kindle would be limited to using an EVDO network to download e-book content; (ii) Amazon would pay the wireless provider for the cost of bandwidth, with Amazon covering that cost by increasing the price of e-books; and (iii) the consumer not paying any fee to a wireless provider.

The cost of the bandwidth necessary to download content would be baked into the price of the content itself. Note that this model could be used for downloading all sorts of other content (e.g. music, video) as well. This would allow portable media devices to use an EVDO network to get connectivity almost everywhere, without saddling consumers with hefty monthly data fees.

This obviously wouldn’t work for more general purpose devices that could access the entire web, but for limited purpose wireless devices, that may only get sporadic use, this model seems like the way to go.


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