Exclusive New Research from the Telecom Leader

Survey stats * market share * real world deployments * and more

Now with two ways to buy…

      Subscribe in NewsGator Online   Subscribe in Bloglines   
   Comments

Nokia World: Preaching to the customer

more on the topic

More Related Articles

AMSTERDAM — Nokia World, the handset maker's annual customer and analyst extravaganza, doesn't come off as the typical vendor showcase. Most manufacturers would be content to market their products to customers, but Nokia apparently feels it has to educate them, too.

In addition to the typical show lineup, Nokia brought in an unusual handful of speakers tasked with telling operator customers just how much their business has changed.

First, Rory Sutherland, vice chairman of Ogilvy Group, spoke about post-scarcity economics, the condition in which a consumable good is in such abundance that old rules governing producer and consumer no longer apply. Sound like gibberish? Well, Sutherland clarified his point with an analogy to the pornography industry: Digital photography and desktop production tools have become so cheap and simple that millions have found their calling as amateur pornographers. The best of those millions of videos are bound to be better than the best of the handful of professionally produced movies, Sutherland said, so consequently the porn industry lives in fear of Internet and video sharing technologies.

After him was Chris Anderson, editor in chief of Wired, who discussed his theories — and the subject of his upcoming book — about the concept of “free”. Everything from network storage to access to media has become free in the minds of consumers because the delivery cost has become insignificant, Anderson said. So the prevailing business model is to give consumers what they want for free and sell something else.

Though tangential, the message from both speakers was clear: Carriers need to change their business models. They can't continue to sell services that customers get for free elsewhere, so they should sell access. Plus, the sheer volume of user-generated and third-party content dwarfs anything carriers can produce in both quantity and quality, so they should just get out of the business.

One thing you can't accuse Nokia of is being subtle.

Want to use this article? Click here for options!
© 2009 Penton Media Inc.

  • Telephony Content

related resources

popular articles



blog comments powered by Disqus
Get Updates Via Email

Webcasts

WEBCAST

Reduce Customer Churn and Cut Costs Webcast | July 22, 2009

Learn the best practices for online customer billing and service – how to implement a paperless bill, drive traffic to your web site, improve customer service.

REGISTER NOW

White Papers

WHITE PAPER

Automated End-to-End Managed Service Delivery. Sponsored by Ciena.

Ciena’s industry-leading CoreDirector Multiservice Optical Switch with FastMesh® has been used for efficient and robust core switching in the world’s largest networks. DOWNLOAD NOW

Podcasts

PODCAST

Wikimedia explores the phone as encyclopedia

Kul Wadhwa, head of business development, Wikimedia Foundation, discusses with senior editor Kevin Fitchard the Wikipedia’s future on the mobile phone. LISTEN

Blogs

BLOG

I-feature: Readers respond

As promised, a key component of Telephony’s new Interactive Featureis reader participation READ

E-Books

E-BOOKS

Next-Generation Now: Evolve your communications services in the post-recession world.

Read New eBook.

  • Telephony Content
  • Telephony Content

Recent Comments

Follow comments on Telephony

More ways to stay informed

Find us on Facebook

follow us on twitter

Browse Issues

  • June 1, 2009
  • October 1, 2008
  • April 1, 2009
  • March 1, 2009
  • February 1, 2009
  • January 1, 2009
  • December 1, 2008