Rubin: Ad-subsidised cellphone is ‘crazy’
5 November 2007 - 16:21In the build-up to Android’s announcement, many analysts and commentators alike have put forward the idea of cellphone contract where watching adverts subsidises or, in some predictions, completely funds the monthly line-rental of the handset itself. Existing business models (albeit on a far smaller scale), including the UK’s “Blyk” and Virgin’s “Suga Mama” scheme, have have moderate success but nothing on the same scale as some predicted for the gPhone. Well, today we have Android and the promise of an open-source OS and software suite, but if you were hoping to cancel your direct debit to whichever carrier currently owns your soul, think again: Android project leader Andy Rubin has gone on record calling the idea of an advertising line-rental model “crazy”.

In an interview with USA Today, Rubin was asked whether he saw a future for targeted advertising as a way for cellphone users to fund their mobile habits.
“That’s crazy. The economics don’t work. I don’t want a phone spewing ads all over the place. That reminds me of The Blade Runner. You won’t walk by a Starbucks and feel your phone vibrate urging you to stop in” Andy Rubin
In fact, the ad revenue has been earmarked predominantly for Google’s own coffers, with the savings made in the form of reduced OS licencing fees that could either be absorbed by the handset manufacturer or passed on to the consumer in the form of cheaper handsets.
It’ll disappoint many initially, but the consistent message from consumers has been that they don’t actually want a barrage of advertising. What will be closely watched - not least the traditional carriers - is the balance Google makes between services and advertisements.
1 Comment | Tags: AdWords, Android, Google, Google Phone


14 Nov 2007 - 9:29
Blyk and its ilk remind me of the old “people pc” concept from the last bubble. these ideas come along when what will be a commodity is still expensive. for those old enough to remember - People PC provided you with a cheap pc (somewhat expensive at the time) and internet service (dial-up) free service as long as you were willing to watch “targeted advertising”. Of course it didn’t work since the price of pc’s and the move to cheaper and cheaper broadband made the whole concept irrelevant. Why does Blyk think that consumers, especially the 16-24 demo who have been raised on the creative chaos of the internet and its spawn YouTube, want to embrace a 20th century commercial television and radio model? Also show me the teenager/young adult that won’t chew through 43 minutes of talk time in less than a day - which brings up the next question - if i use up my free time and then am paying top up - do i still have to watch the advertising? if you want to embrace old commercial models that worked ( and on some level still do) then embrace free all the time! Commercial broadcast television never asked proposed a limited amount of reception time and then a top up fee. Support the whole thing via advertising and give away air time and phones for FREE.