By John Mark V. Tuazon
Computerworld Philippines
November 10, 2009
Telecommunications firms need to break out of the mold of merely providing access to consumers, and expand to avenues providing relevant content to their end-users, executives from a 3G technology innovator urged in a meeting with reporters Thursday.
Instead of competing for cost of 3G services, visiting Qualcomm officials said mobile networks should instead compete for value to sustain their business. “Because of its added capabilities, 3G is not just an addition to providing wireless Internet access,” said John Stefanac, president, Qualcomm Southeast Asia/Pacific. “It should be a medium for operators to offer a wide variety of services.”
Stefanac said that before, when operators were merely servicing voice and SMS to users, it was difficult to compete on value, “so they ended up competing on price. But 3G is more than that,” he stressed, adding that competing on value means delivering certain applications that are relevant to the end-users.
Stefanac illustrated the example of Amazon’s Kindle, which is the first e-Book reader device of its kind to have provided content to consumers without having to go through mobile operators. “They have their own relationship to customers,” he pointed out, “and because of that, they are able to offer customers end-to-end solutions that meet their needs.”
Because of the immense popularity of Kindle, Stefanac said mobile operators should be more involved in the device selection by its subscribers. “They have to make sure that subscribers are using those devices specifically due to the applications designed for them,” he stressed.
Stefanac said the development of applications utilizing the 3G network will ensure the migration of users to preferred networks, enabling operators to be a part of the value chain. “But as we see it, in the Philippines, the software development area of the 3G ecosystem needs to do more,” he commented. “Since the Philippines is an English-speaking nation, there can even be a potential for homegrown applications to be exported abroad.”
One type of application telcos can utilize, according to Stefanac, is the massive popularity of social networks such as Facebook and Friendster in the Philippines. “Social networking is an important factor in 3G growth,” Stefanac said.
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