Tag: mobile

  • Reinventing the payphone with WiFi access points

    Reinventing the payphone with WiFi access points

    As smartphones have become common, the humble phone box has become a quaint reminder of a previous era. A series of initiatives around the world to use phone boxes to WiFi points may be giving them another lease of life.

    For telecommunications companies around the world what to do with thousands of barely used but high maintenance phone boxes has become a pressing question, particularly in markets where licenses require operators to maintain them as part of their service obligations.

    A solution may be found in municipal WiFi as cities have found one of the barriers to rolling out networks is where to locate base stations. In Barcelona one of the solutions has been to create hotspots in bus shelters.

    The idea of using payphones as hotspots first appeared in the Yorkshire town of Leeds followed by a municipal network in New York and now Australia as the incumbent telco Telstra announced plans to rollout wireless broadband across the country.

    In the UK, the Leeds based service includes charging stations in the kiosks with the services based upon advertising. It’s notable the UK service is a private startup while the US experiment is a municipal initiative and the Australian service is an extension of the existing telco network.

    It may be that other revenue generators may be to provide electric vehicle charging, secure storage and perhaps neighbourhood collection points for delivery services. The model certainly needs tweaking.

    How the utility of kiosks providing WiFi and these other neighbourhood services work will depend upon many factors; the economics may require governments or community groups to provide the services. It certainly is a business model in development.

    For now though it seems the remaining payphone kiosks are safe from being abandoned.

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  • iPhone ME — Apple risks becoming the new Microsoft

    iPhone ME — Apple risks becoming the new Microsoft

    It’s been a tough week for Apple, after the spectacular launch of the iPhone 6 the company has had two humiliating and worrying setbacks that indicate standards may be slipping at the once untouchable giant.

    The iPhone 6 Plus should have been a triumph, and for a while it was, but the news the phones bend and distort has tarnished the product.

    Compounding the bendable phone problem are the claims users are being charged to replace their damaged handsets.

    On its own this problem might have been manageable like the iPhone4’s antenna problems in 2010, however today’s news that the latest iOS8 has had to be withdrawn after user complaints indicates a sloppiness has crept into the company.

    Both problems, or all three problems if it turns out the stories of Genius Bars charging to replace damaged phones, show Apple isn’t paying attention to detail to the degree they’ve become known for.

    The botched iOS8.0.1 rollout is sloppy work while the bendable phone is very much an uncharacteristic lapse in design.

    For a premium brand with a large dose of arrogance, shipping defective products is both an embarrassment and damages the company’s name.

    This inattention to detail is horribly reminiscent of Microsoft’s horror days at the turn of the Century where the company repeatedly rushed incomplete products to market — Windows ME being the most notorious example.

    So maybe we are seeing Apple become the new Microsoft and the iPhone 6 Plus as the Windows ME of our time.

    That doesn’t mean we’ll see the end of Apple, Microsoft is still a huge corporation, but it may be the tech industry’s most iconic business is beginning to lose its edge.

    Image of Steve Jobs and Bill Gates via Wikipedia

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  • Don’t be at the wrong end of the long tail

    Don’t be at the wrong end of the long tail

    One of the most important characteristics of the technology industry is  you have to be first or second in your market to guarantee profitability.

    As more of the world become digitized this is becoming true in other sectors, as Tomi Ahonen’s survey of the app industry shows. This also demolishes the long tail theory of online economics.

    The long tail idea was put out by writer Chris Anderson during the first dot com boom.

    Anderson’s view was the long tail of older material would be a useful income source for creatives and businesses. For many, small payments on a ‘long tail’ of older work would add up to reasonable revenues.

    I’ve always skeptical of that view as the internet tends reward the ‘one percenters’ — a tiny number with the most traffic or revenue make the money while the bulk of players fight over the few crumbs that drop from the table.

    A sheer disaster industry

    A good example of how digital markets favour a tiny group of leaders  is in Tomi Ahonen’s survey of the 2014 mobile apps market that shows the vast majority of developers struggle for pennies.

    Ahonen pulls no punches, describing the apps industry as a “sheer disaster industry with only one sector making money” and goes on to describe just how dire the predicament is for most developers.

    The first point is where the money is being made; the first answer is by Google and Apple who skim five billion of the industry’s $21 billion in revenues. Just that stat alone shows where the real money is in the sector.

    Of the remaining $15 billion the top 1.3% of the industry — around 27,000 developers — take $11 billion, or 73% of the revenue and leave four billion to be shared among the other 98%.

    Slaves and huddled masses

    At the other end of the scale those who Ahonen calls the ‘slaves’ and the ‘huddled masses’ there’s only 400 million dollars to be shared around two million developers. Implying 87% of the industry barely make a few hundred dollars a year.

    On Ahonene’s figures two out of five developer make nothing.

    HUDDLED MASSES IN APPS ECONOMY 2013
    Revenues left . . . . . . . . . .  0 million dollars
    Bottom 39% developers . . 819,000 developers
    Bottom 39% earn . . . . . . .  0 million dollars
    Bottom 39% earn . . . . . . .  0% of all revenues
    Bottom 39% earn . . . . . . .  0% of developer revenues
    Average per dev . . . . . . . .  0 dollars
    In above numbers:
    Beggars failed to earn . . . . 400,000
    Hobbyists don’t care . . . . . 250,000
    Branded utility app devs . . 170,000
    Source: TomiAhonen Consulting analysis on Vision Mobile survey Aug 2014

    The Apps industry is a stark indicator of just how brutal the economics of digital distribution are. The long tail is real, it’s just that it describes a massive imbalance in income within markets.

    For all of us trying to make a dollar in the digital world, we need to find the niche where we fit into the profitable part of the curve.

    Being on the wrong end of the long tail is a recipe for poverty.

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  • Blurring the boundaries between home and office

    Blurring the boundaries between home and office

    “My ambition is to only spend four or five hours in the office,” said Vodafone Australia CEO Iñaki Berroeta when asked at a lunch in Sydney today about how he would like to structure his working day.

    For many Australians, this is becoming the reality of work as increasingly their job is following them home and into their social lives according to Microsoft’s Life On Demand white paper released this week.

    The blurring of the lines between home and work is no surprise to small business owners, senior executives or those establishing a startup, however according to Microsoft this is becoming normal for the majority of workers.

    In their paper, Microsoft found 30% of Australian workers are checking work emails on devices at home before they leave for work and 23% are doing work activities while they are socialising with their friends.

    Overall, more than a quarter of Australians work from anywhere which has more than doubled in the last five years.

    This is largely due to the rise of tablet computers and accessible wireless broadband. A direct consequence of this is nearly half of commuters work or study while on public transport.

    Being able to work on the train, bus or tram is changing the usage of public transport with many commuters preferring to use the usually slower option (at least in Australia) over driving as it’s seen as more productive time. This is a cultural change that governments have been slow to understand.

    Equally slow have been many businesses in understanding they have to deploy the tools that allow workers to be efficient while out of the office, this is the whole point of cloud services.

    The workplace is changing as mobile internet becomes an expected part of society. How is your businesses catering to both your staff and customers’ needs in the age of the smartphone and tablet computer?

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  • A tale of two telcos

    A tale of two telcos

    Last Thursday saw China Mobile and Australia’s Telstra release their annual results.

    Both have impressive numbers that illustrate how the telco industry is changing along with some stark differences between the two nation’s business culture.

    For both companies their results show how voice and SMS are declining as the ‘rivers of gold’ for telecoms operators around the world; China Mobile’s voice revenues are down 6% while  Telstra’s fixed line voice fell by a similar amount.

    In Australia, the incumbent telco (which sometimes advertises on this blog) continued its dominant position in its market with net profit rising nearly 15% on the back of 6.1% increase in income.

    teslstra-revenue-2014

    Telstra’s results also showed how the Aussie telecommunications market is now primarily a mobile sector; while the advantages of being the incumbent are substantial the real growth and profits in the business are in it’s non traditional sectors. It’s little wonder the company is happy to give away its legacy copper systems to the government’s troubled National Broadband Network.

    In the PRC, the news wasn’t so good with China Mobile’s net profit for the first half of the year falling  8.5 per cent as its traditional voice and messaging businesses faced continued pressure from social media firms, despite revenue being up nearly five percent.

    China Telecom is under pressure from competitors while in Australia the incumbents are doing very well. This is true across much of the Aussie economy.

    While China Mobile is staking its future on its 4G rollout, Telstra is seeing the Internet of Things and Machine to Machine (M2M) markets as being the key markets, despite Gartner flagging the IoT as being at peak of the Hype Cycle.

    It may well turn out to be the other way round — Chinese businesses and governments are far quicker to embrace the IoT than their Australian equivalents while Telstra’s biggest competitive advantage against SingTel Optus and Vodafone is it’s far superior 4G network.

    China Mobile’s and Telstra’s competing fortunes tell us much about each country’s telecommunications markets along with the direction of both nation’s economies.

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