If Necessity is the Mother of Invention, Telcos should Embrace the Necessity of Openness

We now have 7 billion people in the world. What a great growth market. Unless, for some reason, you are a network operator facing the dreaded “scissor effect” of exploding traffic in the face of flat revenues. So why do people expect that the agricultural community will be able to keep up with demand, while telcos cannot? To feed our growing population, food production will need to double, and double again. It is a necessity for our survival. But we just expect food to appear on our table, even in the face of climate change and rising energy costs. Part of the reason may be in the fact that the agricultural community is just that, a community. Farmers see themselves as part of an extended supply chain, and they are driven by the value of putting nutrition on our tables. If we accept that communication is becoming a necessity to our connected society, then why can’t telcos expect the same?

Communications service providers in pursuit of non-traditional growth and revenue streams have come to accept that innovation does not grow on trees. Their transformation now includes the principle that they must enable partners in the supply chain to better utilize their networks and capabilities in an open and effective manner. Driving innovation and differentiation is becoming a more genetically engineered process–a hybrid of a richer and dynamic developer experience, with an inviting end-to-end customer experience, rooted in higher levels of operational awareness.

Operational awareness allows CSPs to balance the service velocity that developers desire, with the service quality that consumers expect. The “necessity” is becoming clearer. CSP can expose assets through a service delivery framework, acting as gateway to a structured, disciplined operational environment that encourages reuse and manages performance. This will allow the service provider to help bring connectivity and applications together in context the consumer can appreciate–more personalized, more localized, more real-time. More about putting the food on the table. Would this not make a stronger value proposition to an application developer than have to go over the top of, or disintermediating the network operator?

Telcordia will be participating in the Multi-Cloud Developer Experience Catalyst project at TM Forum Management World Americas in Orlando, Florida on 8-10 November 2011 [Catalyst]. The collaboration demonstrates how CSPs can harvest additional revenue opportunities by offering application developers an ecosystem that embraces the necessity of service velocity, without compromising service quality. It’s a critical step toward openness nurturing invention.

And finally, some food for thought. Our farmers recognize that population growth will strain the supply chain, particularly as produce needs to travel across regions with insufficient infrastructure and lack of regulatory oversight. Estimates are that nearly half of all the food produced will be lost on the trip from farm to household. Half. Farmers won’t solve that problem focusing their efforts on the farm—on incremental crop yields or more fuel-efficient equipment. While those are important, increasing their value to the market also depends on their ability to influence the supply chain, end to end, from seed to plate. It’s just a matter of embracing the necessity of it all.

1 Comment | Posted on by Adan Pope in Cloud, Transformation
Adan Pope

About Adan Pope

Adan K. Pope is Chief Technology Officer and Chief Strategy Officer for Telcordia.

Futurecom: The Value of Momentum

When transformation programs fail, the root causes for failure can often be attributed to a lack of strategic aspiration, and the lack of support for the key strategic decisions that follow (e.g., metrics, risk, scope).  Strategy begins to tack toward urgency, rather than aspiration.  But as Telcordia gears up for Futurecom (September 12-14, Sao Paulo), I reflect on the value that market momentum brings to bear on strategic decision making.

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Is the Communications Supply Chain Broken?

In a recent opinion piece in The Wall Street Journal (Why Bandwidth Pricing is Anti-Competitive), David Hyman of Netflix asserted that “cable companies plan to deliver their own services over the Internet, but they want to charge extra for customers of competitors.” Rather than get sucked into a technical analysis of Mr. Hyman’s assertions, my reading between the lines drew me to the conclusion that content aggregators and communications service providers still haven’t really been able to sit at the same table and understand each other’s business. To consumers, the communications supply “chain” is less like an all-inclusive vacation package to Las Vegas, and more like trying to navigate their own cruise ship between islands of value.

Unlike the automotive industry, whose highly-efficient horizontal integration really grew out of the fragmentation of auto manufacturers and outsourcing, the current day communication supply chain was thrust together by technology advancements. It was not that long ago that if I wanted to see a movie, I went to a theater. Content provider, content distributor. My only communications needs might involved calling an interactive voice response system for show times. To enjoy a movie today, all I need is my iPad and my favorite comfy couch (or a table at the coffee shop, or a quiet corner at the airport lounge).

And I thank Netflix for their innovation and the convenience they have brought to my busy (and mobile) lifestyle. But I have also seen firsthand that communications service providers are not public utilities, and their ability to invest in infrastructure is driven by their ability to make a fair market return. Network design and rollout and the capital and resources required are far from easy or free.  

So what inspired the “lean manufacturing” supply chain in the automotive industry? Maybe it was the daunting task of efficiently assembling the 25,000 or so parts found in the modern automobile. Will this level of collaboration be required in our industry to “assemble” complex, interactive, personalized communications services? Yes (with some help from B/OSS). Can this be achieved through regulatory bodies and lobbyists?  Doubtful.  More likely that an effective supply chain will come from a place of mutual understanding and transparency–and maybe a couple proverbial welding masks and blow torches.

Leave a comment | Posted on by Adan Pope in Regulatory, Telecom Service Factory, Value Added Services (VAS)