HomeTelecomsConnectivity: Selling an illusion?


Connectivity: Selling an illusion? — 2 Comments

  1. Certain forms of transport are sold on a “passengers per minute” basis – ski lifts, for example.

    It’s also a good metric for various pinch-points such as ticket barriers, escalators etc.

    The problem that the telecom industry faces is that virtually no other broadband-delivered products besides undifferentiated Internet access actually appeal to customers. IPTV and carrier VoIP are the two main exceptions for consumers, and stuff like VPNs, SIP trunks, SaaS & hosting for business.

    All the others tend to be to complex when you dig into the details. Unlike trains or roads, it’s very difficult to define an “application” despite vendor rhetoric. Facebook comes in 100 different variants depending on device, web/app version, plus it has a gazillion plug-ins / page elements from other sources like advertisers, YouTube, external links, games etc. Browser pages are usually mashups as well, and increasingly being encrypted to boot.

    There appears to be no *demand* for differentiated Internet connections from content/app players, only putative “supply” from networks – and even then, it doesn’t work very well. There’s also a huge issue that Network QoS is only a small % of what drives overall experience QoE, and there’s often easier and cheaper levels to pull instead.

  2. Dean, thanks for the comments. I agree with much of what you say, and this is not a disguised pitch for Network QoS. But it is a call for the existing products to be more clearly defined. “Up to 20Mbps” scream the DSL ads of all the providers, which provides no way to differentiate between the products.

    In France, where I live, I can’t buy “better” broadband even if I want to. And I know that my experience is not perfect, no is it hitting any technical limits. That is an example of an inadequately defined market situation. Money left on the table.


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