Andrey Golub

Web 2.0 forces Telcos to rethink strategy 

It's for the long time already that I write about that Web 2.0 has arrived to Mobile (Mobile 2.0),- it's about Google that became "crazy" so buys one Mobile 2.0 start-up after another in between of patenting some simple algorithms, it's about big Telcos (Fixed and Mobile) that invest in panic lots of money to the Web 2.0 Applications and Platforms, it's about very good funded US-based start-ups looking for the best approach for how to bring the Web, and particularly Web 2.0m to Mobile (with help of some middle-ware gateways), it's about some visionary people that dream about the better 2.0 services for TLC... and it's of course MVNO Business Model and approaches, my favourite subject, since I'm involved in MVNO.it as Strategy and Technology Adviser...

And few days ago I've got a very strong confirmation that all that I write about is not just my ideas- it seems to be the only way for TLC to survive in today's world, where 2.0 (collaboration, community, user-driven, dynamic, bottom-up, etc) is everywhere.

Just have a look at the title of this Cover-Story article of the TELECOMMUNICATIONS magazine (vol. 41, No. 9,- September 2007): 

What's such special in this Cover Story article? (for me personally this issue of TLC Magazine it's not only about Web 2.0, but also it was "nice to know" that IPTV is hopeless).

On the fingers (from this article and some other related)- the authors want to tell us one easy thing- TELCOS ARE IN PANIC! Their business models, platforms, approaches do not work well anymore!

Well, it was always known that huge operators will be never able to easily adopt their business to quickly changing Web 2.0 world and the new User Experience (active participation). But now it seems that Telcos try to do something to change it :) Unlike some earlier they were just telling us- we're happy with Voice, SMS, Mobile Web, and ring-tones/ graphics selling to the Mobile users :).

• Today they've understood that, first of all, "Mobile Web" it's not the same as the Web brought to Mobile, it's just another thing!

• Then, they now seem to agree that their clients want participation and this is the main "content" of today/tomorrow. But their Service Delivery Platforms, CRM, Billing Systems- are not ready for such kind of VAS!

So what do they do? It depends on how big and reach the Telco is :)

• Article says that BT is the Leader of Innovation on the field (in EU at least). BT invest some big money and efforts to R&D around Web 2.0, BT will soon have some their own (very cool of course!) Web 2.0 Platform, an Open platform, and they do not limit their 2.0 ambitions with the Fixed line communication but also think about Mobile 2.0. BT is gonna push some Open API for their Platform, as Facebook works!
• Then France Telecom follows. Some cool R&D projects with very bit different approach, but anyway they're investing, experimenting, developing, deploying.

So these two Telcos (and not only them of course) will have something extra-expensive, extra-their-own, extra-cool for sure... soon I believe :)

Then article explains that some important mobile players, particularly Vodafone, now work with some technological partners (U.S. based Novarra for Vodafone). So they involve Technology Enablers/ Middle-ware Providers and in such way they'll be able to better concentrate on their core business- carrier :) So my vote would be for Vodafine in this context, not for BT/FT :)

I've looked at what Novarra brings to the table- the great job guys! It's about ocontent transformation for handsets (2G through to 3G) and not only. There is only one NO: Novarra is probably the great middle-ware, but it's only a technical solution, not a complete business solution! So the Mobile 2.0 as a new field for Vodafone is in the hands of the same carrier. If so- they'll have problems for sure. But at least they do not invent the wheel as those BIGs that develop it all in their own.

Then it comes to more interesting part (for me)- the article speaks about such start-up as Shozu. It's another kind of Technology Enabler, they have developed an advanced "Web 2.0 to Mobile gateway" middle-ware platform (a client-server solution to optimize mobile data-traffic). They connect to Mobile Carrier's network such Web 2.0 services as YouTube, MySpace, Flickr and Facebook!

It's all good, but I read later that Shozu was funded by 24M$... But what for?! You'll not believe me, but it's only tree days ago I discussing with my friend Michael who's technology expert, about how we could do a "Web 2.0 to Mobile Gateway" + "Fring-like application-container" Demo for MVNO.it in few days- and it seemed quite clear how such platform should work and where to get its ready pieces to start with... but here we see 24M$! Even if I understand it's the ready product not prototype, I know that Marketing/ BizDev eats lots of money- but 24M$ is too much, guys! ;)

Then it takes to France Telecom, the success of its project Pikeo (a photo-sharing site with photo positioning on the map, tagging and so on, btw based on some Microsoft's Virtual Earth framework).

The author then comes back to BT, to better compare its Open-Platform + SDK approach with FT's "I'll have it all developed by myself but totally controlled by us!". I like of course much more the approach of BT of a Open platform/ framework. But I any case I am sure they'll stuck with it soon. It's not possible for such a huge company to follow this crazy dynamic world, redeveloping their billion-cost platforms every year!

And the better thing that the article does not say directly, but I read it in between of the stings- it's that THE OTHER, small Telcos- have no chance to survive!!! It's all crazy- Vodafone, BT, FT are big and strong, well. They can invest huge money so they are trying.

But the smaller players?! We will hope they'll finally BECOME PURE CARRIERS, and leave the space of VAS to Technology and Business Model ENABLERS.

Having said this, I am now 100% convinced that MVNO is the best approach to cover new needs of users in the Mobile 2.0 space, leaving to Telcos doing what the should do- maintain their infrastructure and supplying wholesale traffic to ENABLERS!

Who will not agree with this opinion? I accept different opinions, but we'll see it soon!;) And in any case I wish the best luck to everybody- to the Big and Strong full of money Telcos, to Technology providers/ cool start-ups funded by MM$, to Technology and Business Models Enablers as MVNE in the Mobile Telcos world, and good luck to Mobile 2.0 users!

P.S. What's about the article? Here it is, enjoy reading!

Keywords: 3G, British Telecom, Content Transformation, Facebook, Flickr, France Telecom, Google, MVNE, MVNO, MVNO.it, Michael Tabolsky, Mobile 2.0, Mobile Web, MySpace, Novarra, Novarra, Pierre Bellanger, Pikeo, Shozu, Social Network Mobile, Social Networking, TLC, Technology Enabler, Telecommunications, Web 2.0, Web 2.0 Applications, Web 2.0 Platforms, YouTube, 2G