Make Telecom Systems, network, Phones, Product and Services for the Common man. http://wp.me/p1ZsI2-9i 3 August, 2012
Introduction: There is urgent need to make Telecom systems, Networks, Phones, Products and Services that are available, accessible and affordable to common man. As in every business, success of the business lies in its capability to build volume; and ‘Cost of user devices’ and “Cost of Usage’ are important factors in bringing in business volume.
1. There was a time where the business focus of most telecom industrialists were on the creamy layer as 80% of the revenue come from 20% of the high end users there. But enormous growth story of telecom that happened in last decade is ample proof that the fact is other way around. Considerable reduction in cost of end user devices and cost usage helped the the business to grow in huge volumes everywhere, turning the table as 90% revenue generating users are from the general mass that contribute the much higher volume of revenue than that of the 10% in the creamy layer. Pre-paid mobile phone service is a typical example.
2. However, the phone vendors vie each other in bringing into the market more and more super hyped phones so as to make quick money from the creamy layer instead of enhancing more capability on affordable models catering the needs of the vast majority users in the general mass of the population. Same goes in the case of hype up towards higher and higher data speed capability whether the technology and the systems in the field are ready for it, and also whether most users that generate major business volume really need it and have the knowhow to manage sophisticated technology products and features.
It creates considerable fission in the path of smooth growth as most of the hyped up products are like putting the cart before the horse making it difficult for the service providers to make available systems & technology that cater for the high volume of lower level and the low volume creamy layer customers at the same time.
3. While every sophisticated features being offered with the release of each high profile phones cannot be included in the lower models. Same is true about the high data rate handling capability of phones made for 3G, 4G etc. services.
4G LTE cell sites would cover bigger cell area but such network do not support Voice calls and therefore need to fall back to 2G networks to service voice calls. In addition to above factors, the new generation technology use different frequency in the spectrum layer in different countries and hence one cannot roam with same phone everywhere which also becomes an important factor that could disrupt the growth of business volume.
Therefore, there is a need to provide features, products and services that are useful and affordable to the majority population and continue to be of interest in the long run and benefit both users and the industry.
While it is possible to manufacture phones that can handle different technology systems and network, cost goes up heavily both for the network operators as well as for the users especially where Governments decide to extract money for different layers of wireless spectrum that are needed to provide service across the users.
Technologies change too fast. What is good today may become obsolete tomorrow and new technology systems would need different systems connectivity and transport methods that would also need different range spectrum. It makes it impractical for licensed service providers to pay for spectrum needed for many years in advance unless it shall include cost of new spectrum needed by them for technology upgrades later. There are many such contentious issues to be ironed out between the Licensee/Spectrum providers and Telecom industrialists.
In fact Telecom penetration of a billion and its effect on the very much talked about ‘Inclusive finance’ and savings that can be made by prevention of pilferage and corrupt practices in India will contribute much more to the GDP than what government can make by selling License and Spectrum to Telecom Industry that will be ultimately passed on to the user.
4. Potential of using phones for disparate telephony related and non-telephony related Value Added Systems are becoming limitless. For example, the products that related to multimedia transactions, health care products, Money management using phones etc.
Mobile phones play a major role in Internet of Things (IOT).
Phones have become no more just phones but mini computers. Data and multimedia services, and Voice over IP are giving way to IP based switching and method of transport. The features such as text to voice conversion especially with transcription to vernacular option is a marvelous product that can be of great use in guiding the users who are not having text reading level of knowledge, to follow the instructions in the texts in screen displays or voice interactive systems and respond accordingly. Some of which could be voice response for authentication in form voice recognition for security purpose.
The danger in this is the cost of service and end user devices will go up and push a major portion of low end users out of the system affecting business volume and revenue. This can countered only by convergence of systems, networks, connectivity, method of transport to keep the keep the cost of usage and end user devices affordable to common man.
In short Government should concentrate on people centric technology and giving focus on making mobile phones a Life Science Device (LSD) that will help eradicate poverty and enrich the social status of hundreds of millions in the lower space of the socio economic pyramid in the country.
Also please read my blogs and chart showing Poverty index, Standard of living versus resource mobilization based on GDP growth.
1. Open out Telecom Manufacturing Sector in India. http://wp.me/p1ZsI2-3o
2. ‘More Transparency Needed in Seller – Buyer Relation’. http://wp.me/p1ZsI2-3c
3. It was (is) wrong to sell wireless spectrum by auction or else. http://wp.me/p1ZsI2-3
4. Universal Un-banked Money Management by phone http://wp.me/p1ZsI2-4g
5. Mobile Phones as ‘Life Science Device’. (Internet of things) http://wp.me/p1ZsI2-zM
6. Phones can save fuel, human time and efforts and improve standard of living. Virtual money management systems can save government’s cost for printing money. http://wp.me/p1ZsI2-8j
Abraham Paul. e-mail: firstname.lastname@example.org Tweet @PA_Paul