The big telecom players do realise the need for high quality ‘experiences’ and ‘services’ for end users, but comfort zone is still the network – not the end user. In a way you can’t blame them. The people business is difficult. For these executives the ‘network’, and ‘spectrum’ are safe - controllable, own-able. However the end user is evolving, filled with needs and expectations, and has the ability to churn (become the customer of someone else who offers better value for money). How very dare you!
The telecom industry is still way too network centric to lead mobile innovation in services that will happen over the next three years. The telecom industry has tried to drive service innovation in the past, and it hasn’t been very successful. ‘Video calling’ was a big promise from the industry, but badly implemented. Compare that with start-up innovator Skype. Close to 50% of all Skype calls are video calls. This shows that there’s demand, if you get the service and the price point right. MMS is another service debacle of the telecom industry. The proposition was clear and simple, yet pricing and implementation was poor, and picture messaging simply didn’t take off as expected. Who remembers ‘push to talk’ anymore?
The big telecom companies tend to have senior management teams full of accountants, businessmen, and brand specialists – and sometimes technologists. This gives them a clear bias. The companies that will truly drive mobile service innovation will be led by people who obsess about design, user needs, and true value for money.
Olof Schybergson / CEO of Fjord
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