March 05, 2004
All your customer are belong to us
Saw this advert in my Yahoo! mail account:
Well, can’t say I didn’t tell you. How do any of these carriers think they’re providing differentiation and lock-in? How can they justify to their shareholders handing over the customer relationship for a few short-lived measly bucks a month?
Ah! What whacky world of telecom! Doncha just love it?
Posted by Martin Geddes at 11:59 AMTrackBack URL for this entry:
http://www.telepocalypse.net/cgi-sys/cgiwrap/mgeddes/MT/mt-tb.cgi/175.
Two words...
Goal Congruence
Until shareholders start demanding it for everyone from senior manager to CEO and Chairman then stupid deals which damage shareholder value will continue to earn middle managers big bonuses. Local optima damage shareholder value.
Most telcos don't even know what business they are in. They think its all about renting bandwidth!!! When they can't get the basics right how can they possible set goals congruent with the stockholders best interest?
David
Posted by: at March 6, 2004 12:10 AM"How do any of these carriers think they’re providing differentiation and lock-in?"
Taxis, couriers, roads, rail, air, there are many "carriers" who have never been able lock-in their customers, and perhaps regrettably for them, they have always had to work for a living.
This is the lesson data (ex-"voice only") carriers are understandably reluctant to learn.
That they are trying is to be commended.
A dip in the waters of the new oceanic paradigm, where, subject to very few rules, anyone can go anywhere without reference to any "operator" except the port into which your communication docks.
In the world of "End to End Application" (as opposed, diametrically, to the telco "End to End Control") there is little "lock-in" except doing the job the customer wants done.
Thats the "constraint," control is now, and increasingly, in the customers hand.
Posted by: at March 6, 2004 09:58 PMLooks like the carriers are going to get screwed no matter you they partner with.
1) Sprint and Virgin form, VirginMobile USA.
2) Virgin enters the music download business as Virgin Digital.
Now when it comes time to offer the service over VirginMobile, guess where the margin will be???
Under rock #1? VirginMobile USA ?
or under rock #2, VirginDigital?
Also, looks like Yahoo just rolled out something that would work great with LBS. Who is going to get the lion's share of that cash cow?
Nobody in telco land understands how the new world works. The network buildout phase is almost done, and now real game begins.
Posted by: at March 9, 2004 09:57 PM