I’ve been casting about at CTIA IT today trying to identify some themes and hot impressions from the buzz of the CTIA show. As a “here and now” guy whose forte is driving revenues, as opposed to over the horizons speculating, one thing that stands clear is the impact of the iPhone. In fact it is the only part of the show so far that has created it’s own real undercurrent. Not surprising–just look at ATT’s earnings report today announcing a 41.9% increase as compared to the Q3 006. My core impressions are as follows.

Milestone or Tipping Point
The iPhone in fact is both a milestone and a tipping point in the mobile ecosystem. The iPhone with the beyond just voice calls emphasis, towards a high degree of entertainment and fun, combined with the fact that it is the first consumer focused launch in the wireless world that was not directed by the carriers, makes it a real watershed event in the business. In the minds of consumers, it certainly provides a richer experience. From the commercial side it really opens up the value chain. Both positive effects on the industry, at least in the US.

This richer consumer experience will seed demand for ever more advanced services that will run on the iPhone platform, and the pressure on carriers is already starting to build. I’ve counted no less than 3 iPhone imitators from the OEMs STC, LG and Samsung. Let’s hope they have done their homework and aren’t creating a toaster oven—neither a real oven nor a good toaster. Apple invested tens of millions in consumer research and it shows. If there is a lesson for the carrier handset directors it is that consumers will pay a premium, and even sacrifice homogeneous, lowest common denominator functionality and trade it off for superior user interfaces and fewer, but killer, apps. Yea, yea, storage might be limited, texting isn’t very good, the camera isn’t 5 megapicsels, and the it runs a little slower on some networks, but it is a killer means to surf the web and have a full, rich mobile net experience while having a high degree of fun.

Game Changers make Rules Changes
The larger commercial impact is the game changing effect Apple has manifested in the mobile market. They are now an independent force in this space. It doesn’t strip the power of the operators, but Apple has definitely established a dialog with wireless consumers and the topic of conversation is something the carriers have never dreamed of. In the iPhone launch Apple controlled how prospects learned about the devices and how they bought the devices in a completely different context than carriers had in the past. It was a watershed event in the business.

Apple released the limitations that have previously existed in the market. Much like user generated content in the form of Utube has changed mass broadcasting, Apple has changed the dynamic in how consumers think, act, and do mobile. The iPhone essentially transcends what a mobile phone is. In the past carriers never thought a mass audience would seek to make a $500 handset purchase. The message is no longer the “phone on its own,” It is so much more than just that.

This doesn’t mean the carriers are are destined to loose loose loose. In fact this is an opportunity for them to open up themselves, free their minds, and much like the digital camera market has flourished (notwithstanding the advent of an additional 500 million mobile camera phones). It is incumbent on the carriers to step up their games, in order to compete. Open themselves to more innovative approaches. Will all new handset launches rival Apples? No, there will be many more like them, but focused to a precise and impactful market launch.

Hence, the iPhone is having a “here and now effect” on the mobile industry. Let’s see how the operators position themselves as Apple develops the second and third generation iPhones, as they have done with the iPod. It has changed the landscape.