One might argue that IP telephony adds lots of value, and creates new higher-value businesses based on new unified communications features. One might also observe that IP telephony and VoIP cannibalize the service provider's basic voice business. That's the paradox: the web, the Internet and IP-based services both create new revenue potential and destroy existing value.
Tuesday, May 17, 2011
Paradoxical Web Econonics
The social web’s economics are paradoxical: The more it blossoms, the more it destroys value. Those of you in the telecom or Internet Service Provider industry might well agree. So might many in the bookstore, music or video industries, not to mention other retail businesses.
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
18% in U.S. Access Location-Based Smartphone Services | ClickZ
Some 17.6 percent of U.S. smart phone users accessed at least one "check-in"-oriented mobile platform during the month of March, 2011 representing 7.1 percent of the nation's entire mobile population, according to comScore.
Location-based service users are more likely to interact with other forms of mobile media and content than non LBS-using smart phone owners. They demonstrated a higher propensity for consuming news content through their handsets, as well as accessing restaurant information and online retail sites, based on data collected in the three-month period ending March 31, 2011
LBS users were also more likely to own a tablet, and a higher percentage recalled seeing ads on their mobile devices. In terms of demographics, 13 to 34 year olds accounted for the majority of users for location services, representing 66.8 percent of users.
Location-based service users are more likely to interact with other forms of mobile media and content than non LBS-using smart phone owners. They demonstrated a higher propensity for consuming news content through their handsets, as well as accessing restaurant information and online retail sites, based on data collected in the three-month period ending March 31, 2011
LBS users were also more likely to own a tablet, and a higher percentage recalled seeing ads on their mobile devices. In terms of demographics, 13 to 34 year olds accounted for the majority of users for location services, representing 66.8 percent of users.
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
App Providers Control Too Much Personal Information, U.S. Adults Say
When American adults were asked if they agree or disagree that some online companies, such as Google or Facebook, control too much of our personal information and know too much about our browsing habits, 76 percent agree. Only 16 percent disagree, according to a new survey by Adweek and the Harris Poll.
While majorities of both men and women agree that these companies control too much and have too much information about us, women are somewhat more likely to say this than men are (79 percent of women, 74 percent of men).
Yet, despite a large majority of Americans agreeing that these companies know and control too much, Americans are more likely to say they oppose government intervention to regulate large online companies like Google or Facebook (46 percent) rather than support it (36 percent) .
http://www.harrisinteractive.com/NewsRoom.aspx
While majorities of both men and women agree that these companies control too much and have too much information about us, women are somewhat more likely to say this than men are (79 percent of women, 74 percent of men).
Yet, despite a large majority of Americans agreeing that these companies know and control too much, Americans are more likely to say they oppose government intervention to regulate large online companies like Google or Facebook (46 percent) rather than support it (36 percent) .
http://www.harrisinteractive.com/NewsRoom.aspx
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
33x Mobile Traffic Growth Next 10 Years
Mobile traffic will grow 33 times over 2010 levels in the next decade, the UMTS Forum predicts.
The report also predicts that growth will be stronger still in Europe. During the same period, the UMTS Forum estimates that mobile traffic in a typical Western European country will grow by 67 times from 2010 levels.
The report also predicts that growth will be stronger still in Europe. During the same period, the UMTS Forum estimates that mobile traffic in a typical Western European country will grow by 67 times from 2010 levels.
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
Will Apple be King of Payments?
"Apple has revolutionized how we consume music, mobile applications, and media, in general. I fully expect them to revolutionize the retail experience, too," says Michael Koploy, Software Advice ERP market analyst.
"If Apple can revolutionize the point of sale, consumers will use their iPhone for retail checkout." That is the trick, isn't it?
"In the process, I think they will come to own a huge chunk of the payments industry," says Koploy. "We think Apple has a chance to own the later opportunity by acting as a merchant services provider."
"Consumers won’t care who’s processing the transaction or earning fees," he argues. It's true that consumers won't care. But retailers will care, as well the existing issuers of credit cards and debit cards, as well as the card associations, especially Visa and MasterCard.
From the outside, it always seems to be logical that a new provider, offering a new experience, ought to be able to change the payments experience. Starbucks perhaps is the best current example of that, in a retail setting.
But consumer desire, though necessary, is not sufficient to drive a change, as it is the retailers who also have to decide such a change in technology and experience benefits them as well. In the past, modifications of the point of service terminals have run as much as $200 per terminal, a capital investment retailers would rather not make.
The other issue is whether any new payment scheme can offer lower transaction costs for retailers. Apple might hope to do so, but has to be aware that the issuing banks and payment networks are not going to stand idly by and allow Apple to erode current industry revenues.
Apple has to be considered one of the more fearsome potential disruptors. But disruption in the payments industry is far harder than it typically appears.
Some of us might guess that Apple could play a bigger role not in the actual payments revenue stream, but as a provider of new value to ecosystem participants. In other words, Apple's biggest success could come not as a replacement for current methods, but as a partner to most of the ecosystem, including end users, retailers, banks and settlement networks.
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
Chrome Now Has 160 Million Users
Google’s Chrome web browser now counts 160 million users in 41 nations, the company says. That’s more than double the 70 million users of the web browser Google reported at last year’s conference.
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
Sprint’s Likely Buyer May Be CenturyLink
Sprint Nextel Corp. might end up being acquired if AT&T successfully acquires T-Mobile USA, and the most likely buyer is CenturyLink, the biggest company in telecommunications without a wireless unit, analysts speculate.
CenturyLink, based in Monroe, Louisiana, is the most logical acquirer because it has the financial resources, it’s shown an appetite for big deals and it needs a wireless business, say analysts including Chris Larsen of Piper Jaffray Cos.
CenturyLink, based in Monroe, Louisiana, is the most logical acquirer because it has the financial resources, it’s shown an appetite for big deals and it needs a wireless business, say analysts including Chris Larsen of Piper Jaffray Cos.
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
Subscribe to:
Posts (Atom)
-
We have all repeatedly seen comparisons of equity value of hyperscale app providers compared to the value of connectivity providers, which s...
-
It really is surprising how often a Pareto distribution--the “80/20 rule--appears in business life, or in life, generally. Basically, the...
-
One recurring issue with forecasts of multi-access edge computing is that it is easier to make predictions about cost than revenue and infra...
