However, and of course, operators don’t want to be “dumb bit pipes”. They want to climb the value chain. They may suffer from “revenue envy”. They may like the lifestyles they have today and want to hang on to them. It could be that being just a bit pipe is, given your observation about prices dropping to zero, a bit of an unrewarding thing.

I think there are opportunities not to be dumb bit pipes that don’t involve transforming into media companies but that do require them to think differently about their businesses. The problem may be that most of these are not uniquely differentiable propositions in the way that media or content is, or can be, and hence don’t represent a move away from commoditized propositions.

On the other hand, I think that the BBC iPlayer discussion reminds us that Content Provider business models are disconnected from the cost implications of their actions. The cost of infrastructure operation and upgrade clearly needs to be borne somewhere, and there is almost certainly a need for discussion as to whether operator concerns about the sustainability of the model for the “core” is a real economic concern, or whether it is a community “crying wolf” in pain at the erosion of its license to print money.

It would be interesting to know more of the facts.

Jo

[Incidentally, I made some similar kinds of remarks about operator competencies a little while ago at http://www.dev.mobi/blog/if-not-now-when.

However, and of course, operators don’t want to be “dumb bit pipes”. They want to climb the value chain. They may suffer from “revenue envy”. They may like the lifestyles they have today and want to hang on to them. It could be that being just a bit pipe is, given your observation about prices dropping to zero, a bit of an unrewarding thing.

I think there are opportunities not to be dumb bit pipes that don’t involve transforming into media companies but that do require them to think differently about their businesses. The problem may be that most of these are not uniquely differentiable propositions in the way that media or content is, or can be, and hence don’t represent a move away from commoditized propositions.

On the other hand, I think that the BBC iPlayer discussion reminds us that Content Provider business models are disconnected from the cost implications of their actions. The cost of infrastructure operation and upgrade clearly needs to be borne somewhere, and there is almost certainly a need for discussion as to whether operator concerns about the sustainability of the model for the “core” is a real economic concern, or whether it is a community “crying wolf” in pain at the erosion of its license to print money.

It would be interesting to know more of the facts.

Jo

[Incidentally, I made some similar kinds of remarks about operator competencies a little while ago at http://www.dev.mobi/blog/if-not-now-when.

Chris – whilst companies understand the need for the sort of cultural change you are describing, they are poor at implementing it. That is why they fail.

Chris – whilst companies understand the need for the sort of cultural change you are describing, they are poor at implementing it. That is why they fail.

I’ve recently come to realise that its not too late for the carriers (and for carriers read technology based firms generally) to change their approach, they still control the customer, its just that they don’t think that way.

Culturally it would be like asking a bunch of magic circle lawyers to become drama teachers and “act like trees”, they’re just not wired that way.

I’ve recently come to realise that its not too late for the carriers (and for carriers read technology based firms generally) to change their approach, they still control the customer, its just that they don’t think that way.

Culturally it would be like asking a bunch of magic circle lawyers to become drama teachers and “act like trees”, they’re just not wired that way.