(keitai-l) Re: Divorcing networks from services [was: VoIP over WLAN/Bluetooth]

From: Benjamin Kowarsch <benjk_at_mac.com>
Date: 08/15/01
Message-Id: <p0433010ab79ff938816f@[10.0.1.2]>
>Actually, I don't see much of a market for independent portals in the long
>run . Reason? They will all fold because they can't make money. Don't get me
>wrong, I think it would be great if the more customer focused and Internet
>savvy players can challenge the operators, but I just don't see it happen.
>The operators billing relationship is just too strong, and let's face it,
>without billing relationship, no mirobilling capabilities, no m-commerce or
>content revenues. Bye, bye. Same dilemma as i-mode's unofficial content
>providers.

Don't get confused by the word "portal"

What I can picture is that

* initially,
there will be some independent companies offering add on services 
like YAC and J2 do today.

YAC's model is based on revenue from premium rate -> caller pays.
J2's model is based on subscription -> called party pays

Prepaid could allow an easy to use hybrid model where you get basics 
free via premium rate, but for enhanced service you have to purchase 
prepaid credit and might eventually subscribe.

Therefore, there is a billing relationship after all.

* eventually,
however, it is likely that the operators themselves want to get into 
this segment and start offering the same services as value added 
services. The trend I imagine is that some operators will focus on 
network/infrastructure management and others focus on services and 
branding.

Thereby, the road is open to a two tier structure where a few 
infrastructure providers sell capacity wholesale and many service 
operators turn that capacity into service packages which they sell 
under their brands to end users.

VodaFone and Orange have a strong potential to become those "portals" 
but it is also thinkable that Voda goes for network provisioning and 
Orange for services.

The billing relationship will be with the service providers and they 
will be visible to customers. Who runs the network doesn't matter as 
far as the end user is concerned and service providers will not 
necessarily be limited to any one network provider. Eventually, 
capacity may even be sold in bulk through brokers as a commodity just 
like energy is now traded in the UK.

This makes perfectly sense and it has happened in other industries. 
There is no reason why it cannot happen with telephony.

In such an environment, service providers have to compete through 
their services. They do not have a guarantee that if they ignore 
services they can keep those services at bay. A new entrant can 
easily offer that service and steal their customers. Besides, if the 
service provider isn't limited to a particular network then why 
should they refuse to let their customers access their services 
through other means of access. The chance is that those other means 
of access, like for example VoIP over a public WLAN can help the 
service provider to reduce cost and increase their coverage.

I agree with you however, that it is rather unlikely that the top 
mobile players will stay out of this and watch some newbie upstart 
take over their market. For this to happen the entire industry would 
have to sleep for quite some time and be unaware of what's going on. 
Instead they are likely to embrace the trend and use it. Early movers 
to gain competitive advantage, others to stay competitive.

regards
benjamin

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Received on Wed Aug 15 13:23:01 2001