Telstra: Dumb pipes are a myth

Telstra: Dumb pipes are a myth

Staff writer  |   June 19, 2013
Dumb pipes don’t exist, yet many Asian operators are basing their strategies on this and other telco myths, according to Telstra Global executive director Martjin Blanken.
In a presentation at the CommunicAsia Summit yesterday, Blanken argued that the concept of the dumb pipe and the notion that owning the customer is a path to financial success are myths proliferating within the industry.
“Core telco basics will always remain. The best way to achieve success is by focusing on customer experience to achieve financial out-performance and working in concert with partners,” he said.
Instead of basing strategies on avoiding the mythical dumb-pipe scenario, Blanken said operators need to determine which markets they can win in and committing to them.
“[But] for those markets where you can’t win, wholesale is better than no sale,” he said.
Blanken argued that another enduring myth is that OTT is a universal threat to the telecom sector. The OTT threat is very real for many traditional retail service providers, “and these organizations must fight hard in these markets to maintain their position,” he said.
“But in other markets OTT providers should be helped. They are driving utilization on networks and platforms and are actually boosting revenues.”
Blanken added that the telecom industry is increasingly coming round to the importance of partnerships and realizing that “not everything can be done in house”.
Operators embracing partnerships and focusing on quality of service will be able to stand out from the pack, he said.
Staff writer


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