Forget the Smartphone

Smartphones might be carrying wireless operators’ profits right now, but change is a-brewin’. As the iPhone becomes mainstream and the FCC opens an enquiry into exclusive handset deals, carriers are turning to new device categories (cameras, e-readers! Machine-to-machine!) as linchpins for a “beyond the smartphone” strategy. In fact, converged, do-everything mini-computing devices that happen to make phone calls might eventually end up as last year’s beauty queens.

As faster 3G and 4G technologies like WiMAX and LTE roll out, segments of non-branded hardware and consumer electronics that are more narrowly targeted are coming to the fore.

“There’s an overall trend towards openness afoot, and you’ll see mobility be far more than the device you’re used to making phone calls on,” said Steve Elfman, president of network operations & wholesale at Sprint-Nextel Corp.. “Nontraditional and machine-to-machine will soon be much broader categories.” It’s already started to happen: Sprint of course is the underlying provider for Amazon Kindle e-reader. It also has more than 300 other devices on its network that are not Sprint-branded devices.

Glenn Lurie, head of emerging devices over at AT&T Inc. and its iPhone liaison, has a similar vision (call it a “beyond the iPhone” strategy). He has identified single-purpose categories like e-readers and cameras as the next wrinkle in wireless, with enormous potential. Even a GPS-enabled dog collar for puppy-tracking is on his radar screen. As a first step, AT&T will provide 3G connectivity for Sony's new Daily Edition e-reader, due to launch in December.

The carrier also unveiled a new lab facility this week in Austin, Texas, dedicated to emerging device certification to accelerate the entry of innovative consumer electronics and M2M devices into the marketplace.

“4G is all about nontraditional devices,” said Elfman, who, it should be noted, is also quick to champion Sprint’s exclusive Palm Pre offering. “Not everything has to be a Swiss-army device. There will be single-purpose options for specific segments, like home health care and fleet management. We’ll continue to see more and more of it from ourselves and our competitors.”

Operators are also starting to leverage the consumer electronics ecosystem. Personal hotspots like the Mi-Fi, available at Sprint and Verizon Wireless allow users to hook up and use any device with Wi-Fi, wherever they are, by bridging them to the 3G network.

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