Amazon Tech Support

  • Subscribe to our RSS feed.
  • Twitter
  • StumbleUpon
  • Reddit
  • Facebook
  • Digg

Wednesday, 29 July 2009

Is the "subscription" mentality holding back the telecom industry?

Posted on 07:16 by Unknown
Whenever I see discussions about new network technologies like LTE or WiMAX, the usual metrics and terms always crop up: subscribers, ARPU, "per month" and so on.

Yet I've had a nagging feeling for some time that it's this focus on subscribers and subscriptions that is holding back the telecom industry, especially in mobile. It's frozen into business models, standards, architectures, financial reporting and expectation, remuneration and bonus structures and countless other facets of the industry.

A couple of months back I pointed out how this mentality leads to standards that further entrench existing business models. I've also highlighted what I refer to as The Tyranny of the SIM Card on numerous occasions. It's no coincidence that the S in SIM stands for "subscriber".

Now obviously subscription models are certainly desirable, whether they are on a long-term contract basis or a prepaid model. But the notion of an ongoing, regular "monogamous" commercial relationship is not necessarily necessary or appropriate, especially for data connectivity.

The main benefit of "subscription" relationships from the end-user standpoint is a consistent phone number, and in fixed telecom a consistently-managed piece of wire. Having an easy payment mechanism is useful too.

But we already benefit from many other telecom services than those we "subscribe" to ourselves. They're embedded around us in daily life: credit-card swipe machines, hotel broadband services, WiFi hotspots, click-to-call websites and so forth.

As individuals, we don't "subscribe" to electricity, yet it's all around us, and we use it multiple times a day, with multiple individuals or companies or governments picking up their share of "our" usage fees. Imagine if you had to have roaming agreements, that meant you paid a fee for your implicit electricity consumption when you sat underneath another person's or company's light bulb.

I'm wondering if this is a model we should look at for telecoms as well. If I'm in a bar, trying to tell a friend how to find it, why am I doing it on *my* phone? Why not the bar's phone, as that instance of communications is part of the bar's implicit business model?

Certainly, there's a huge argument for embedding data connectivity into devices - why should I need a "subscription" to connect my PC to mobile broadband? Maybe Samsung or the retailer should bear the cost and administrative overhead?

I think this will happen gradually, and with it I also see the supposed link between "subscription" and identity evaporating even further. I think Google gets this with Google Voice - why should a network operator presume to "own my identity" simply because they provide me with a number?

Whenever I see "subscriber" numbers for LTE or 4G, stretching out to 2015, 2020 or beyond, I see someone who's blinded by the subscription philosophy. I think by 2020, it will be a concept seen as quaint or niche, rather than typical. Yes, I know it will make all the business model spreadsheets messy, but that's tough - I just don't think subscription-type relationships are the way people will consume most of their communications in future.
Email ThisBlogThis!Share to XShare to FacebookShare to Pinterest
Posted in | No comments
Newer Post Older Post Home

0 comments:

Post a Comment

Subscribe to: Post Comments (Atom)

Popular Posts

  • The Number 1 problem for "seamless" models of WiFi offload / network selection
    I frequently argue against the assumption that "seamless" connection to WiFi is practical or desirable, especially for the general...
  • Mobile social networking - how I'll know when it's going mainstream....
    This falls into the category of "amusing personal anecdotes" rather than "rigorous industry analysis". But it also refle...
  • Part of Nokia's problem - making Ovi compelling
    I've got a Nokia Ovi account somewhere. Signed up for it ages ago, to play around with the Ovi Store when I had an N97 to play with, ba...
  • Putting a value on customer data with reference to offload
    There continues to be a ferocious discussion about AT&T's new data plans - and also, as I commented a couple of weeks ago, about the...
  • BT WiFi smartphone application
    I've just seen BT's announcement of its new iPhone and Android app, offering free WiFi access at its Openzone and FON hotspots to i...
  • Android - the retail experience
    I just stopped off at my local branch of Carphone Warehouse on a whim, to have a quick look at what's being sold and how. (By coincidenc...
  • The Novatel MiFi - possibilities for new mobile broadband business models
    OK, I realise that I've been a bit grumpy and critical of some things recently. But before everyone assumes I'm getting more cantank...
  • For telcos, "Monetising OTT" is about distribution partnerships & revshare, not QoS or termination fees
    A couple of years ago, I moderated a panel session at a conference on broadband business models and "traffic management". It was o...
  • An update on @DApremium - the world's first paid Twitter channel. Now available with quarterly or annual subscriptions
    It's now been six weeks since I announced the launch of @DApremium , my second Twitter stream - one which is available only to paid subs...
  • The risks of ignorance-based pricing strategies for telecoms
    Almost exactly 5 years ago, I wrote a blog post cutting through the myth of "value-based pricing" in the telecoms industry. It fo...

Blog Archive

  • ►  2013 (31)
    • ►  October (2)
    • ►  September (3)
    • ►  August (1)
    • ►  July (2)
    • ►  June (6)
    • ►  May (5)
    • ►  April (1)
    • ►  March (3)
    • ►  February (3)
    • ►  January (5)
  • ►  2012 (46)
    • ►  December (5)
    • ►  November (4)
    • ►  October (3)
    • ►  September (2)
    • ►  August (4)
    • ►  July (3)
    • ►  June (1)
    • ►  May (6)
    • ►  April (4)
    • ►  March (1)
    • ►  February (9)
    • ►  January (4)
  • ►  2011 (73)
    • ►  December (4)
    • ►  November (10)
    • ►  October (8)
    • ►  September (6)
    • ►  August (3)
    • ►  July (5)
    • ►  June (7)
    • ►  May (9)
    • ►  April (4)
    • ►  March (7)
    • ►  February (6)
    • ►  January (4)
  • ►  2010 (130)
    • ►  December (4)
    • ►  November (10)
    • ►  October (10)
    • ►  September (6)
    • ►  August (9)
    • ►  July (7)
    • ►  June (19)
    • ►  May (19)
    • ►  April (11)
    • ►  March (18)
    • ►  February (7)
    • ►  January (10)
  • ▼  2009 (126)
    • ►  December (4)
    • ►  November (14)
    • ►  October (9)
    • ►  September (8)
    • ►  August (9)
    • ▼  July (10)
      • If I was running M&A at an operator looking at con...
      • Enterprise mobile developers need to geta grip on ...
      • Is the "subscription" mentality holding back the t...
      • Rhetoric or delusion for mobile broadband?
      • Mobile capacity - not just about GB of traffic....
      • Packet-shaping of audio streams on Voda UK?
      • Differential QoS - applicable to applications as w...
      • Mobile payments = operator logo on a plastic card
      • Voda UK femtocells in the real world
      • UK teenagers don't Twitter. Not exactly surprising.
    • ►  June (21)
    • ►  May (14)
    • ►  April (2)
    • ►  March (11)
    • ►  February (15)
    • ►  January (9)
  • ►  2008 (94)
    • ►  December (24)
    • ►  November (26)
    • ►  October (25)
    • ►  September (19)
Powered by Blogger.

About Me

Unknown
View my complete profile