Friday, December 4, 2009

Operators' choice - "dumb pipe" versus "innovation"

In need to make a comment to my previous blog post. Operators have really yet another option for participating in the app stores business. They can simply position themselves as "tool booths" demanding a cut from app stores for all paid apps downloaded by their customers.

"One would think that the phone companies would be trying to innovate; for example, offering customers value that complements the paid apps. Instead they company is trying to tax the innovation of others." says Mike Masnick commenting on
Australian mobile operator Optus blocking Android paid apps.

Of course operators who invest hundreds of millions in advanced broadband access technologies have a right to participate in the "digital economy" they enable. They constantly fear that they will not be able to fully monetize their investments as their customers will go over-the-top degrading them to "dumb pipes".

However, the choice is not "dumb pipe" versus "toll booth". The choice is "dumb pipe" versus "innovation". I will try to tell you more about this in my next blog post.

No comments:

Post a Comment