Study: iPhone is a detriment to carriers

The iPhone is not a run-away success increasing profits for carriers — or shareholders — and reports of such are the product of Apple’s “unique PR campaign” and uncritical media, according to the Danish consulting firm [Strand Consult](

The company debunks what it says are 10 myths about the iPhone, including the following: The iPhone drives data traffic into mobile operators networks;
the iPhone helps operators attract new customers; and the iPhone is good business for mobile operators.

In a newsletter summarizing the report “The Moment of Truth: a portrait of the iPhone” Strand says the data is based on CEO John Strand’s “many workshops at CxO level for operators across the world that have requested qualified information on the future mobile market and how it will develop.”

One summary point reads: “When you examine the iPhone data consumption, you will see that iPhone customers use their browser to view ordinary Web sites and that they often choose not to view the websites in XHTML — optimized for low bandwidth and mobile phone sized screens. In practice this results in that when an iPhone user browses a typical news site, an ordinary Web page will be around 1MB, while the mobile version of the same page will often be less than 100 Kb. It is significantly cheaper for an operator to produce 100 Kb data than it is to produce 1MB data and it is much more fun to deliver 100 KB rather than 1 MB when you are selling data at a flat rate.”

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