Paul Wallbank – Brilliant Communications

Tag: telco

  • How Google could be about to disrupt the telco industry

    How Google could be about to disrupt the telco industry

    Google are in talks with Hutchison Whampoa for the Hong Kong based conglomerate to provide global roaming for Google’s proposed mobile phone network reports the London Telegraph.

    Hutchison, who recently agreed to buy UK operator O2 for £10.2 billion from Spain’s Telefonica, are one of the quiet global telecommunications players with services in East Asia, Europe and Australia. An international roaming agreement with Hutchison would give Google a substantial global headstart.

    While the mobile phone angle is the obvious service for a global cellular network, another attraction for both Google and Hutchison is the Internet of Things. Being able to offer a worldwide machine to machine (M2M) data service fits very well into Google’s aspirations with products like Nest.

    For the mobile phone operators, the prospect of Google entering their market can’t be comforting with the search engine giant having three times the stock market capitalisation of the world’s biggest telco, China Mobile.

    It may well be however communications companies have little choice as the software companies start to take the telcos’ profits just as they have done with many other industries.

    Should the story be true about Hutchison and Google being in talks it will probably be the start of a massive shift in the global communications industry and one that will see many national champions threatened.

    Google’s global network ambitions could change the future of the Internet of Things industry.

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  • Links of the day – redesigning the car and South China Mall.

    Links of the day – redesigning the car and South China Mall.

    The CES extravaganza continues in Las Vegas with a wave of announcement, most of which I’m ignoring, however the motor industry continues to show off new developments with Mercedes displaying their vision of how a driverless car will look.

    Other interesting links today include an analysis of the ill fated South China Mall’s flaws and how Amazon is reorganising its R&D efforts after the failure of the Amazon Fire.

    Mercedes redesigns the car

    A little while back I suggested that we could do better in redesigning the driverless car – Mercedes have gone ahead and done it.

    Mercedes’ redesign of the driverless car indicates just what can be done when we rethink what passengers will need in the vehicles of the future.

    Ford recalls a vehicle for a UI upgrade

    Ford has recalled its Lincoln MKC SUV models for a software upgrade after discovering drivers were shutting down the cars by accident.

    What’s notable with this story is how software changes are now one of the main reasons for recalling vehicles and how design flaws in an automobile’s computer programs are relatively quickly discovered and resolved.

    We will probably find in the near future car manufacturers will carry out the upgrades remotely rather than ask owners to bring their vehicles into dealerships.

    A long running security flaw is exposed

    In August 2013 a security researcher warned UK online greeting card vendor Moonpig that its system exposed up to six million users’ account and financial details. Until Monday the company had ignored him. This is a tale of classic management disregard for customer security and one area where business culture needs to dramatically change.

    Rumours of an AOL – Verizon merger

    It’s a speculative story but if a merger between US telco Verizon and former internet giant AOL goes ahead it may mark another wave of telcos moving into content services, although it’s hard not to think that Verizon could spend its money more wisely.

    After a flop, Amazon restructures its R&D

    The Amazon Fire was by all measures a miserable flop as a smartphone however it seems the company learned some important lessons from the device’s market failures. Instead of abandoning its research efforts, the online behemoth is increasing it’s R&D budget and reorganising its development division.

    Design fails of the South China Mall

    South China Mall just south of Guangzhou has been the poster child of Chinese malinvestment during the nation’s current boom. In a blog post from 2011, a shopping mall expert visits the development and points out the major design faults in the complex which may well have doomed the project from the beginning.

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  • Customer service and the internet of things

    Customer service and the internet of things

    Improved customer service is the main reason for companies investing in the internet of things reports the Harvard Business Review.

    Having surveyed 269 businesses for their Internet of Things: Science Fiction or Business Fact?  report commissioned by US telco Verizon, the Harvard Business Review team found 51% of companies expected improved customer service as being the main result from their IoT deployment.

    Of those who have deployed IoT technologies, 62% reported they had seen improved customer responsiveness with authors citing jet engine manufacturers, share car services and stock feed companies having benefiting from their investments.

    Tying together technologies that until recently have been stand alone is the key part of the returns realised by companies, allowing older monitoring systems to work better together and increase the value of the data they gather.

    IoT can enable “an incredible unlocking of information about processes that companies never had before,” said Vernon Turner, senior vice president of research and IoT executive lead at International Data Corp. (IDC). Companies that take the time to review and analyze these workflows will quickly find that there are significant opportunities to be found, such as increased efficiency. But the biggest change IoT brings to consumer companies is the increased contact with customers, Turner said.

    Of the IoT investments, the main area nominated for companies in the next year is asset tracking with 36% of respondents saying that will be their main focus. Combined with the 19% looking at fleet management, it shows that sector will probably the most lucrative for businesses servicing the IoT market.

    Risks in the IoT

    While tying together these technologies brings a lot of opportunities there’s no shortage of risks as devices that were never intended to be connected to the net are suddenly part of the global network. The survey shows some managers are aware of the risks that the IoT presents to their businesses with 46 percent citing privacy and regulatory compliance as being risks.

    Another challenge facing IoT deployments is a lack of skills with two out of five respondents flagging they can’t find workers with the skillsets needed to leverage IoT data. The task of managing the volumes of data also worries a third of the managers surveyed.

    The Verizon and HBR survey shows that managers and businesses are still in the early days of understanding the tasks and challenges presented by the internet of things — one suspects that were managers fully across the privacy and security implications the number of respondents flagging concerns would be close to one hundred percent.

    For companies like Verizon who are catering to the M2M and IoT marketplaces this survey is a handy roadmap that lays out the market opportunities for the next two years.

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  • Where next for the telco industry?

    Where next for the telco industry?

    The last thirty years have been good for the telecommunications industry; a wave of privatisations, regulatory reforms and technological change drove the sector and company profits.

    As populations around the world adopted mobile phones users started enthusiastically calling and texting, Telco profits exploded.

    Twenty years later the massive growth to the industry has peaked as customers have moved to using their cellphones for  less lucrative data services.

    So where do the telecommunications companies go next for growth and profit? Today and tomorrow I’m attending the Ovum 2020 Telecoms Summit where they’re looking at the future for the industry.

    Salvation from the internet of things

    The great white hope for the telco industry is the internet of things and the machine to machine (M2M) technologies; the hope being that putting SIM cards into every car, kettle and shipping container that this will be another lucrative revenue stream.

    Martin Creighan, Managing Director for Australia and New Zealand at AT&T, points out that by the end of the decade there will be seven times as many connected devices as live mobile phones. This is where the opportunity lies.

    The problem with the M2M vision is annual revenues per user (ARPU) for connected devices are a fraction of those from voice and messaging over the last twenty years and telcos will need more than that to maintain their revenues, let alone grow.

    Moving into the cloud

    One of the other revenue streams is adding cloud services, again this is a low margin business and involves competing with global giants like Amazon and Google along with the myriad of specialist companies.

    Another possibility is in providing professional services as Jennifer Douglas, Director of Fixed voice and platinum for Telstra, described in the company’s home support product.

    The problem with both the cloud and professional services model this requires a change in culture for the telcos, the traditional contempt telecommunications executives have for the end user doesn’t cut it in the professional services and cloud computing industries.

    For the telcos, this major change is something that’s been experienced by many other industries. That a comparatively protected industry like telecommunications companies are subject to these disruptions illustrates just how no sector is safe from being uprnded.

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  • Television in an age of context and the mobile internet

    Television in an age of context and the mobile internet

    One of the great changes to the telecommunications industry is the rise of video. As part of the Decoding the New Economy video series we had an opportunity to grab a quick chat with Torsten Sauer, Ericsson’s Vice President of Broadcast services.

    Video is the great challenge for telecommunications company, broadcasters and consumers with Cisco Systems predicting by 2018 over 50% of internet traffic will be videos.

    As designer Gadi Amit told this website a few weeks ago, the problem is compounded as the broadcast world evolves from a three or four screen environment to an almost infinite range of screen sizes and devices.

    With most of that traffic being over mobile devices, Sweden’s Ericsson has been adapting to the the industry’s change to mobile video with a series of acquisitions in the broadcast production space. Sauer explained some of the motivations and strategies behind Ericsson’s moves in the industry.

    Red Bee Media

    Ericsson’s acquisition of British content house Red Bee Media earlier this year is one of the areas where the company is looking at growing its services.

    “Consumer behaviour is changing and that represents a huge transformation for the industry,” Sauer says. “We want to be a catalyst for that transformation through providing the right services.”

    Along with more traditional fields like basic production services, Sauer sees the company’s opportunity in building the metadata into videos making them more accessible over the very crowded internet.

    A multitude of screens

    The other key opportunity Sauer sees is that by creating richer content, it becomes easier for creators, broadcasters and advertisers to serve appropriate content to viewers depending upon both their interests and the devices they are using.

    “It’s a great opportunity for broadcasters to address new opportunities and revenue streams on different devices and in different locations.”

    Sauer’s view ties in with Gadi Amit’s in that the proliferation of ways to watch videos is going to create great opportunities for broadcasters to find different ways to show their work.

    The innovation race

    With the proliferation of channels, the field isn’t just left to the incumbents with Suaer seeing the entry of new broadcasters as one of the great opportunities.

    “There will be a lot of opportunities for a lot of new players, that will create a healthy innovation base. It’s a very exciting time to be in this industry.”

    With video marketing exploding, Sauer sees it’s important for non-broadcast businesses to experiment with video; “It’s now the time, business models are not all set and technology models are not all set.”

    Just as businesses have to deal with a more mobile marketplace and workforce, we’re also seeing video becoming more important. It’s a great opportunity for businesses to develop new channels.

     

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