Arrington posts on TechCrunch regarding some companies and applications making a go of the Mobile Social Networking space.
The Holy Grail For Mobile Social Networks
He correctly identifies what he calls the “chicken and egg problem” with regard mobile applications – a critical mass of users is required for any one user to find any utility. Of course, economists frame this situation in the theory of network effects and Metcalfe’s law. A telecommunications network’s value is proportional to the square of the number of users.
The goal for any entrant into this space should be to ensure they have enough users so that their usage reaches a tipping point. The best way to acheive a critical user mass for tipping is to ensure that your application is bundled with an existing mobile provider’s product. We are also very likely to see vertical integration of mobile social networking apps from Apple and Microsoft and Google as well if they enter the service provider space through the 700 MHz Auction.