“Google and Yahoo have yet to figure out how to fully exploit mobile or voice ads themselves, so they might not be able to help you out.” — Are there any other alternatives? This is the reason why they don’t put control management at the top of the list.

It doesn’t matter what you think, as long as all other Telcos are in the same page then that secures them.

Network Coverage should be #1 on the list. It’s a huge issue, because sure they might design tons of great services and devices – but if I can’t make a damn call then I won’t be a customer.

It’s bad enough that AT&T has those annoying commercials about their service working anywhere, anywhere except my house and office that is!

There’s no worse user experience than a great handset with no bars of service.

There are basically 6 major revenue streams of mobile operators today and they are all in pretty bad shape…

1. National voice: Flat rates, bucket pricing and competition already brought down prices per minute between 50-70% in Europe.

2. International voice. The likes of Skype, Jaxtr, EQO (insert favorite VoIP player here) are already killing voice prices for international calling rates by offering pure over-IP voice (Skype) or by using local calls and connect them over IP (EQO). And if these startups don’t change the world or regulators will!

3. Messaging follows voice. Too bad that you included a lot of free SMS into your voice plans (subjecting them to price war) and that you failed to make MMS fly. Seriously, does anyone think that iPhone lacks MMS capability? Finally, mail – even after 10 years of WAP and smartphones there is still no easy way to pop your private mail in the mobile (Blackberry/iPhone aside) and if you even consider getting your job mail you will be swamped in configuration hell and having to argue with your IT department for the right to do your job.

4. Value Added Services (VAS). Off course mobile operators have seen their voice & messaging revenues decline for the last years and they thought that VAS was going to save the day. Problem is that only a few operators, like 3, iMode and a few others, have been able to boost real revenue in this area. They have about 15% of total customer revenue. Most European operators are hovering around 5%. VAS will not save the day and Internet services going mobile is more likely to win over mobile operator portals (walled gardens).

5. Data. Finally here a product that seems to be taking off! The guy in heaven has answered operator prayers. Yes, flat rate 3G/HSPA data plans are really selling well! But this is only partly good news because there are 2 major problems. First, how can it take 10 years to understand what customers have been saying all along and what ISPs figured out years ago? Flatrate is the key to growth! Not listening to customers should be mandatory in any business. Second, once you go flat rate you also go utility. If you say 9.99, I say 9.95. Data access will in a competitive world be low margin.

6. Advertising. Operators are using this as they used VAS 10 years ago (it will save the day) but I have yet to see anyone making real dollars from mobile advertising. The basic problem is that mobile operators do not know their customers that well and they do not offer reach (both key to advertisers). Prepaid customers are basically unknown in demography and most operators never have more market share than 30-40% at most.

So, in summary – mobile operators revenue streams are all ranging from bad to worse. But the even bigger problem is that no one actually likes mobile operators. They have been sitting on a product (voice) that everybody had to have and they have been exploiting that need. Now, when customers have a choice they simply prefer not to do business with the operator if they can avoid it. It is very hard to get a premium from someone who is just not that into you! Compare that with Apple, Harley Davidsson or BMW who all offer premuim priced products that people prefer (and are willing to pay for).

Michael
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http://viibee.com, online dating is fun again

Only tried and tested (by someone else) new innovations are getting a foot in the telcos’ door.

It’s understandable to some degree, however, especially after the MASSIVE mis-investments into 3G licenses in Europe.

After that (circa 2002-3), the telcos have been much more careful on what they do, in my opinion.

execs in a lot of these behemoths are more focused on meeting the qtrly numbers and ’strategic objectives’ (ie, how can i fatten my already bloated comp package moving forward).