Evolution of Mobile Communications and its Impact on Business

This is one of the most fascinating topics for me to research, the reason being that my generation evolved alongside that of the cell phone. I am witness to the transformation of the world landscape through the medium of the mobile communication/computing device. One can even make a valid argument whether the future will even need personal computers the way we know them today. The cell phone has, in a very short period of time, become an indispensible daily device. One can easily go a week without a PC, but can we stand even a day without our iPhone or Blackberry? I will discuss a brief history of the cell phone, its early importance, its transformation and eventually a tool which we can no longer function properly without.

The idea of the wireless phone dates back to a Swedish man named Lars Magnus Ericsson , who installed a wireless phone in his automobile and connected it to land lines whenever he wanted to make a phone call. Although this technology never took hold, it illustrates the human need to stay in touch with the world and finding new and ever convenient ways to do so. The technology evolved with the widespread use of two-way radios and companies such as Motorola and Bell Labs in a race to become the first to perfect the idea. The research stalled, however, due to the Federal Communication Commission’s (FCC) reluctance to devote much bandwidth to the public sector for such development. Without a financial incentive to innovate, the technology crawled along until the 1970s, when more bandwidth was allocated.

The term “cell” phone comes from the use of small groups of radio receiving and transmitting stations (cells) which handle a wireless phone’s call when in its territory. The technology automatically shifts the voice communication to the next “cell” as the mobile phone enters a new territory. By 1982, the FCC authorized commercial cellular service for the USA. A year later, the first American commercial analog cellular service or AMPS (Advanced Mobile Phone Service) was made available in Chicago by Ameritech.

Consumer demand quickly outstripped the 1982 system standards. By 1987, cellular telephone subscribers exceeded one million and the system was overwhelmed. The financial incentive for research and development had finally arrived and the race has not let up since. The technology continues to develop at an astronomical speed and no one is quite sure what the future will look like.


The early importance of the mobile phone is clear. People, government and business were always connected, if one could afford it. The technology allowed for voice communication at any time and almost any place in the populated areas of the United States. People and business were suddenly allowed freedoms never before realized. Parents on a date were a phone call away from the baby-sitter. Business leaders were always accessible and even heads of government could work more efficiently. As technology advanced so did efficiency. Prices for phones dropped dramatically, coverage expanded globally and nothing would ever be the same.

It is hard to gauge the actual early impact of the cell phone. Small business owners were no longer tied to the office. The office itself, for many, had actually gone away. Why would a plumber need a secretary and office when a cell phone eliminated the need for both? Productivity increased, customer service increased, profits increased. The world was suddenly a smaller place and governments were forced to act in new ways, paving the way for free trade zones, pressure to democratize, need to educate its populace, etc. The cell phone helped transform the world by bringing it closer together. Information and ideas were exchanged freely, opening the door to incredible change that might otherwise never have happened.

The cell phone is now a global staple and is changing the face of business in the blink of an eye. The advent of the picture phone has changed an entire industry, not to mention the “always on” eye of the world to current events. If there is a terrorist attack in Pakistan or earthquake in Spain, then there is invariably a person shooting it for the world to see. If there is a baby talking for the first time, then there is a grandmother recording it and sharing it on Youtube.

The past few years has seen the increase of the use of “smart phones” such as the Blackberry and iPhone. This marks an important convergence of the personal computer and the mobile phone. The rise of the mobile communication and computing device is still in its infancy, but the effects are clear for anyone to see. The amount of work able to be accomplished and information available at the ends of one’s fingers is almost unfathomable. In the time it takes to wait for dinner to arrive I can catch up on current events, call my mother and wish her a happy birthday, check my portfolio, answer a couple of e-mails and even calculate the tip for dinner. I could not have dreamed of this just a decade ago!




Even though I have seen more change than almost any other generation in history, I am left to wonder “what next?” I can imagine the death of industries such as the PC, cable television and land lines for telephones. I envision new industries and empires created by those who figure out how to put everything, literally, in the palm of your hand. My only fear is that we evolve into a society that is too connected. What if a clever terrorist or enemy nation finds a way to disrupt mobile communication? What if we were suddenly “disconnected”? Would the world economy grind to a halt? Could we cope?
I look forward to evolving with technology. I do not fear it, but rather embrace it. I think that no amount of technology can change the basic needs of humanity, but we will inevitably be shaped by it. I hope that the evolution of the mobile device brings about the evolution of the human spirit, enabling a sense of global community and eventually peace through understanding each other better.