Archive for the ‘Services’ Category

Broadcasters competing on service – yes they do

Last week-end I watched the Euroleague final four on the TV. For those of you that do not know, Euroleague is the European Basketball Championship.

Euroleague matches are typically licensed to an operator in a country that holds the exclusive rights for broadcasting it. At the same time, Euroleague keeps the rights to broadcast the matches in real-time and offers a VoD service for the matches at www.euroleague.net.  What I found quite interesting last week-end was the fact that the euroleague final four games were broadcasted not by one but two channels. Something which, to the best of my knowledge, was new for Greece.

It was not just two broadcasters competing by serving different content at the same time of the day. It was practically the same content, the same match, with different added-value per case . Two separate crews of reporters and speakers covering the event. It was practically two network/service providers serving the same content in different package.

Quality became the major differentiating point to choose one program over the other. It was not simply that you had to choose between watching the game and watching other channels (for the most part discussions about the elections). A viewer could choose based on the quality of the transmission, and there was a big difference. The quality of the speakers, the reporters in the court, the commentators and guests, it all counted. It worth noting that I didn’t watch all the games on one channel only.

It seems that service providers (which in the aforementioned case were also the network providers) realize that the quality of service becomes a major decision point for the consumer. Content was the king. But it won’t be for long. Quality of service and the value that it adds to the content is going to change that.

For the record, Olympiakos won the cup after 15 years. Two great wins against the biggest names of the season Barcelona and CSLA Moscow landed the trophy to Greece for the second consecutive year.

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Meet me at Data Centres Regional Forum

Next Monday, 19 September I am moderating the evening session “Fibre and Connectivity” of the Data Centres Southern  Europe & Eastern Mediterranean Regional Forum. The session aims at highlighting the commercial and strategic opportunities of data centers located in Southern Europe and East Mediterranean. The area is strategically situated between Europe, Africa and the Middle East and offers great opportunities for connectivity and service providers. The session features Mrs. Goni Revva, Director of Operations & Services for Mediterranean Nautilus Greece, Mr.  Andon Zlatev, CEO of Telepoint Data Center and Mr. Dimitris Michalakis, Director of Product Management & Marketing in OTE Globe.

The forum is held at the Athens Hilton.

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Franchising 101

It has been a while since I posted on the blog. I am happy to break the radio silence to let you know about the newest report I wrote for Diffraction Analysis. It is called “The virtues and limitations of FTTP franchise models” and analyzes the fundamentals of contemporary franchising in the telecommunications business. Franchising has been known in the US for decades but the agreement resembled more to a concession where the cable operator and the city agreed the relinquishing of the rights-of-way for a fee and for a redetermined period of time. Today, content providers and access providers join  forces and leverage on each other’s competitive advantages to offer an attractive value proposition to local customers.

While evidence shows a strong contribution of the model to the bottom line, in the long-term franchisers and franchisees will face serious strategic and regulatory challenges. If you want to learn more, go to Diffraction Analysis web site. I hear that the boss is selling reports individually now, so if you are interested in this piece in particular don’t hesitate to drop him or me an email.

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Semantics, Relevancy & Internet Freedom

The next big thing in the web is going to be semantics and personalization. While the current “version” of the web (i.e. 2.0) focuses on collaboration, user generated content and information sharing, web 3.0 aims at creating (ideally in an autonomic and automatic way) information from scattered data in different locations. There’s a bunch of services already (such as google and facebook and other niche consumer services) that are experimenting on this type of “added value” proposition for the customers. In a nutshell, specialized algorithms are embedded to web sites and enable user profiling and proprietary intelligence to make sure that the user gets what’s asking ranked by relevancy.

I put added value in quotes for a good reason. Is relevancy truly what a user wants? Is it just relevancy that we are looking for when we search the internet? It’s probably more than that. It is also about the important stuff as well as new, provocative, and challenging stuff. Are current implementations of web 3.0-ish algorithms help make the Internet more open and more useful? They certainly make access to knowledge more sofisticated, but do they actually make it better? Think about it for a minute before you watch the following video from TED (thanx @dirkvanderwoude for the pointer).

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What Fixed-line Broadband Providers can Learn from 3G Success and Failures

Probably the major and most visible improvement that was brought down to the mobile industry after the deployment of 3G networks was the enablement of high data rates that turned mobile handsets in to high-tech devices capable for meaningful data communications.

At that time practically all mobile operators commenced replicating the legacy CableTV’s gated garden model. Typically, the  consumers had free access to all the content “in the world” as longs as it was provided by the mobile operator – famous platforms of this kind being Vodafone Live and i-mode (a franchise adopted by many operators globally).

The results were bad and painful to the bottom line. The mobile industry spent billions of funds in spectrum licensing and network equipment only to see their investments produce little to practically no revenues.

Eventually, the model was adjusted (perhaps more accurately changed). Mobile operators permitted free access to Internet content to their subscribers and charged not the content/applications rather the data stream. The situation started to reverse although it was completely altered as soon as smart phones enabled WIFI connections making the use of mobile connectivity affordable (i.e. when WIFI is available 3G is not used and data allowances are not consumed). Consequently, the mobile data revenues grew rapidly, the vendor industry invested huge in mobile device research and is today releasing a new smarphone every other week, millions of developers build software for smartphones and all serious web sites and online services release functional mobile apps to allow access to their connect from anywhere.

This situation highlights a strong point for broadband business models. Trying to confine end-users to strictly constrolled environments and agressively pricing their usage leads to reduced revenues. So, the question is simple: If the successful (on all accounts) mobile industry did not manage to keep their users to closed platforms and it was eventually forced to open their networks and capitalize on the added value of third-parties applications, on what grounds will fixed-broadband service providers succeed otherwise?

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Users Synchronize Watches: The “new” Happy Hour?

A few days ago I was browsing through the fans of the Fiber Camp and saw that a lot of Greek users have changed their avatar to a comic hero. I didn’t pay much attention until I realized that this was not a coincidence and that almost half of the fans gradually changed their avatar to a comic sketch. Fiber Camp ended being followed by Donald, Mickey, Goofy, Spiderman and other paper heroes!

As I looked more into it I found out that this was the result of an anonymous (not signed) Greek text that encouraged Facebook users to “change our […] avatars to a comic hero from our young ages so that we eliminate photos of humans from Facebook for just a few days”.

It sounds like a next-generation hoaxes/chain letters,  circulating in the Interent since forever, but it probably isn’t just that.

It seems that social networking sites influence how users perceive anonymous recommendations and most importantly how they react to them. It also shows how easily can thousands of users be guided to coordinated behaviors, if the message is catchy and can penetrate the masses (think of the “happy hour”). An evolution of viral marketing maybe? Electronic reactions have no direct cost for the users and in several cases these are considered a lot of fun. And that’s all it takes, most of the time.

But I think this observation goes well beyond the potential of a successful marketing campaign. Internet users find it increasingly interesting to organize themselves into loose-purpose communities and most importantly to follow an idea and act collectively, denouncing individualism, the dominant social behavior in western cultures.

I think that society underestimates the power of virtual networks and social media, not in terms of marketing effectiveness of course, rather in terms of how users’ behavior may be maneuvered as they become increasingly exposed to the social media culture. Citizens’ long-term exposure to the Internet culture, expedited by social networking sites, may effectively change their behavior. Our actions are immediately influenced by our environment; but what environment? After all we are only mimics, naturally.

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Tele: In Search for the Killer-App

Finding the killer-app was always the Holly Grail for high-speed broadband advocates, operators and content providers across the world. Public funding in fiber access infrastructures (such as FTTH) is also questioned due to that there does not seem to be enough number of applications available to make the public investment in broadband worth immediately the effort and money.

Video, the most visible value adding app of NGAN, is bandwidth hungry and it seems reasonable to expect  to be of higher quality as connection speeds increase. But is video by itself enough to drive infrastructure investments and persuade  operators and society that FTTH is a necessity? It might need a push, an appropriate use within a wider context.

I have blogged in the past that it is the quality of service that will probably matter the most amongst consumers and will drive FTTH  (high-speed broadband) adoption. How can quality of service  be incorporated in a meaningful service proposition? What is the key differentiator between FTTH and other broadband alternatives? It is resilience, always-on and bidirectional ultra-speed connections. So, how can service providers leverage on these features?

Cost reduction is not a viable option for sustainable development. Southeast Asian markets have become synonymous to cheap production, and it is highly unlike that any developed country can  come close. The digitization of the modern economy has interconnected the world and altered legacy business models, operational priorities, processes and procedures. In this setting, what makes the difference is  efficient access to people and efficient access to resources. Whether local or global, businesses need to employ and collaborate with human capital from within a country, a continent or the rest of the world.

This _IS_ the key to success. The efficient use of scattered people and resources  for business planning, production planning, training etc, becomes the key advantage in modern business, because it simply unleashes the dynamics of innovation. Competition can replicate blueprints, designs, or ideas but it’s much, much harder to do the same with innovation and efficient practices for use of scattered resources.

During the last decade, Europe invested a hefty amount of money on distance-learning and collaborative platforms. These tools never achieved strong commercial success, not because they were bad or ill designed, but because they were ultimately impractical and could not add significant value to the users:

1. How can you collaborate effectively with, say, 4 other colleagues on a video meeting and simultaneously share and edit documents over a lousy DSL connection? You can’t. You’ are still doing it in the old way: send a version via email, let each member of the group edit it individually, receive all edits, review and incorporate comments, send it over again, fight over the reviewing comments, sort out misunderstandings, keep versioning in good state, spend hours to correct mistakes in the review etc. By the way,  you can forget about the video. You will use an instant messaging tool, you will shut off video and spend much of your time understanding noisy voice conversations and sending text messaging when voice does not get through well. If a call meeting involves multiple partners then a PBX conference bridge is usually preferred.

2. How can you teach and train people and get relevant timely feedback effectively?  This has a smaller degree of bi-directionality  (compared to a meeting) but it is still hard. On the average, companies run web seminars without video. Presenters are able to connect from remote locations. However, participants see a slide show, with challenged voice quality while often they are asked to connect to a PBX to participate. Feedback gets through a linear stream of texts or via a priority queue on the basis of a press of a button. Another alternative is to use a twitter back channel (often identified by a hashtag). This is practiced in high-tech  and social media conferences and it is  truly pretty cool but I doubt if the average trainer could work with it, let alone the average trainee! Nevertheless, there are seminar platforms with richer features (e.g. video), however, few (companies) buy them, because few (users) will/can use them.

3. How can someone work efficiently away from the corporate premises? The minimum requirement is the ability to download and upload files fast from the corporate file server. But, this can’t be done via the asymmetric DSL connections. To be able to work from home as if you were in the office you need bidirectional 100Mbps connections, to enjoy the same speed you have at work.

These needs exist in the present day. But are they met by current connection speeds?

What is missing from today’s businesses is a genuine, novel form of global collaboration among professionals extending beyond urban settings. The technology is available for many years. already Experience is accumulated after years of research. What was missing (until now) was the high-speed Internet access on the user end.

Altogether, Tele- has the potential to become the new killer-app: teleworking, teleconferencing, tele-education and so forth. It addresses a mass market: all employees and all employers. Profit-wise, business models can capitalize on the savings (travels, salaries, efficiency, etc). It also changes dramatically how business is made, and provides new routes to efficiency. Last and not least, with connection speeds of 100Mbps and above it is also feasible.

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The Fiber Camp

I have recently launched Fiber Camp, a Facebook page that aims at attracting interest to broadband and its associated impact to work, society and everyday life.

Fiber Camp will summarize experiences and best practices of the proven or foreseen use of broadband in all areas of economic and social activity. We highly appreciate cases showing broadband minimizing economic and social gaps (e.g. rural vs. urban areas, young vs. elderly people, ethnic minorities etc). We want this community to help us appreciate broadband as the creative disruptor of the society and business; that it is.

The procedure is simple and straight-forward: Anyone can follow the page updates without the need for an invite, as long as they “Like” it. There is also an RSS feed providing a stream with links. Participants can post a link with a short description or/and comment to links supplied by others.

Do you have an interesting project or story to tell? Did you come across an article worth noting? Come on in and share it with us.

You can check Fiber Camp on Facebook!

Fiber Camp speaks both English and Greek!

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Europe: Envisaging an ICT-enabled Future in 113 seconds

Here’s an excellent clip shown in the ICT event 2010 in Brussels. The clip is about the benefits of ICT in everyday life (society, business, research). I like it when broadband is not explicitly mentioned rather taken for granted. Check it out; it is fun and absolutely futuristic! I liked it.

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Banning of Dial Phones in the 30s

Usually I tweet this type of information bits but this one truly worth a mention (The excellent wine I had earlier tonight on that perfect balcony facing the Saronic gulf might also have something to do with this).

Back in the ’30s the US Senate was pressed by the telephone company and (has eventually agreed) to not allow the installation of dial phones in the senators’ offices. Instead the Senate selected to keep the telephone operators, the standard way to make and receive calls in the old days.

I don’t judge decisions in retrospect and outside the relevant context, biased by later developments, but still, this case proves how myopic can some decisions be when people are thinking inside-the-box.

I find the funniest reason for banning dial phones at the end of this small text: Dial phones are bad because they require both hands to operate and good lighting to be able to see the numbers.

Enjoy it here.

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