Friday, December 7, 2007

Which Future for Telcos?


What name would you choose to describe "who you are" if you were an executive at any leading incumbent telecom company? Sure, you might come up with "converged communications and entertainment provider" or something like that, but the term is unsatisfying and probably will confuse most mass market customers in any case. BT already is trying the "information and communications" company tagline. The problem with such efforts as it isn't so clear how the tags differentiate "telcos" from large system integrators, large software houses offering hosted services, cable companies and possibly others.

"Experience provider" is a buzzword some toss around, but it lacks much descriptive power, beyond suggesting an approach to creating services and features. "Application provider" likewise hints at something important, but again is rather too broad to be useful.

But no matter how the nomenclature efforts finally resolve themselves, it seems clear enough that something important is changing. Even if the unique, irreplaceable assets any "telco" owns are the actual pipes and software used to create communications capabilities over those pipes, that will not be a key part of the future identity.

One way or the other, "applications" are going to figure into the description in some key way. Which is odd, in a way. To a very large degree, telcos have always been "application" providers, in the sense that voice is an application running on a network optimized to provide it.

The big change now is the sheer range of applications providers create or deliver.

The big conundrum is that the irreplaceable and unique assets "telcos" possess, aside from their regulatory prowess, is the pipes and associated software that makes those pipes useful. And yet it seems inevitable that "telcos" want to be known as something else more directly associated with "apps."

If you can configure this out, please, make sure all the rest of us know. Maybe somebody can capture the multiple values in one easy to remember phrase.

1 comment:

David H. Deans said...

Gary, while it may be true that some telcos could be viewed as applications providers, once they evolve beyond providing broadband pipes, few are truly "experience providers."

IMHO, the experience layer resides above the applications layer, it's the space where users should be able to extract incremental value from associated services -- usually via inherent customization or personalization capabilities.

That said, meaningful service delivery differentiation will likely come from skilled experience designers who demonstrate a deep-domain knowledge of what customers really need and want from their broadband service offerings.

The upside opportunity for design innovation is huge, and I predict that we'll see more clarity on this topic in 2008.

David H. Deans
GeoActive Group USA

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