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“Peter possesses a keen sense and insight for turning telecom services and products into customers and dollars. He is passionate about this industry, his work and the people he serves. Visit his site, read his blog and sign up for his newsletter at marketingideaguy.com and you will discover what makes Peter a sought after marketing consultant.”

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Cellular Mayhem
On Rad's Radar
Friday, 18 May 2012 09:46

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Just looking at the news makes me think that the cellular industry is having a week of mayhem. Besides the mess I wrote about earlier this week, "US wholesale player LightSquared has filed for Chapter 11 bankruptcy protection amid efforts to resolve regulatory issues that have prevented it from launching its satellite service," according to Telecoms. "The carrier has been planning to build a ground-based LTE network, supported by satellites, but the US Federal Communications Commission (FCC) blocked the project, stating that the proposed mobile broadband network will impact GPS services and that there is no practical way to mitigate the potential interference." That about spells it all out. Last I read Philip Falcone wants the FCC to give Lightsquared better spectrum.

WISPA stormed DC this week to plead at the FCC and Congress for more unlicensed spectrum. Everyone wants more spectrum, but only WISPA will settle for unlicensed spectrum. WISP's make a lot out of a little. Cellcos make a mess out of an abundance, which just goes to show that when you are too big to fail, you will fumble a lot.

Speaking of fumbling, AT&T is in talks with Leap Wireless. Yeah. AT&T needs to acquire more spectrum. How about you and all the rest of you just deploy the spectrum you already have? How about you have to give it back if it isn't lit in a year?

I like this comparison by the NYT: Sprint as a downer and AT&T Mobility as techno-Pollyanna. Sprint might be right about mobile payments, since I don't trust the cellcos enough to be my wallet. I have a wallet. A leather one. I trust AMEX. I understand the rules of using VISA. I have Paypal. What more do I need? Do I really need to spend my money faster?

The Big 4 Cellco execs riffed at CTIA. Yawn.

AT&T ripped into FCC Chair again and threatened price increases: "In the case of wireless, without additional capacity, which would have been created by our transaction, prices rise," said AT&T Senior Vice President Jim Cicconi." So you mismanage your network, can't buy your competition, whine about the FCC and then raise rates. Awesome! We have names for people like you.

You know I have a problem with Sprint and its CEO, but this headline takes the cake: A Better Network is Coming! Really? Could be get a worse network?

,p>T-Mobile thinks that VZ's deal with SpectrumCo (the cable alliance) is bad for everyone. "T-Mobile USA would like to have a chance to bid on the spectrum Verizon Wireless is looking to buy." Well, make a bid then. Sheesh.

The Union is against the VZW-Cable deal, "could mean the end of a competitive telecommunications landscape, saddling consumers with higher prices and diminished choice." Well, that and the Union doesn't get a piece of the deal. I do agree that this will end all competition, since the competition is a Duopoly. Now they would be working together.

Read more... [Cellular Mayhem]
 
A Day in My Brain
On Rad's Radar
Friday, 18 May 2012 06:19

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I was in NYC (Tribeca) this week to spend the day at a Q&A session with Seth Godin. He is a marketing guru and author of a lot of best selling business books. Like these:


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Here are some of the gems that I liked.

"A "brand" is the promise of an experience." [Boy, could I riff on that one!] Brand IS the experience. Accept that most people won't like you. Build a tribe that will.

Commit to one marketplace or two. You can't chop all the trees down in the forest with one hatchet.

"It's way easier to sell water to thirsty people than to make thirsty people. It's OK to remind people they're thirsty." The corollary to that is People buy to avoid pain more often than they buy to gain pleasure.

You can try to create demand for your service, like trying to make people thirsty. Or you can find thirsty people and sell them water.

"Define failure before you start. When you reach that point, stop, learn and move on to the next thing." [It's a concept from Seth's book, The Dip]

"The secret, I think, is in understanding what matters."

"People spend their time and attention and money in places that make them feel valued." Are you making your customers feel valued?

What is the world view of your target customer? Does your marketing line up with that?

For a brief few, Seth talked about working for a start-up versus working for Google or Apple or Facebook. A start-up is about growth If you want fast-paced; to make an impact; and to learn, join the start-up. Google, Apple, Microsoft, and Facebook are in the "keep it going" mode. You won't have an impact there. You will be a cog in the machine. In our world, working for any of the billion dollar LEC's or MSO's is like working for Facebook, only a lot less cool on your resume.

What is Important to you? Tom Peters says that he can tell what is important to you from calendar. What does your schedule say about what's important to you?

It's all about Direct Marketing and Pay for Performance. (Social media is a tool of direct marketing.)

There is no road map.

It's all about connection and association. Are you connecting people?

We have mass disruption going on today. Every industry including our own is being disrupted by the Internet. Why? The Internet is the first device that is both a Receiver and a transmitter. That's the problem.

Hopefully one of these nuggets gets you thinking.

Some notes made it to this Power Point I created.

Read more... [A Day in My Brain]
 
A Game of Risk
On Rad's Radar
Thursday, 17 May 2012 07:20

Everyone blames the FCC. AT&T blames the FCC for all of its woes after the FCC (and the DOJ) said no to its merger with T-Mobile. Boo-hoo. It was a risk. It didn't work out. You probably shouldn't have given them the smoking gun memo. Not to mention that 4G is the new broadband and we need competition in that sector. You can't agree with the FCC and applaud them when they say that wireless is the future, then get mad when they want to maintain the competitive landscape.

Speaking of the competitive landscape: the FCC can not let VZW and the cablecos work together. The only competition we have is the Duopoly - cable versus telco. Letting the largest cellco joint venture with the top 3 or 4 cablecos will spell disaster for competition.

In the short term, we are talking job losses and rising prices. In the long term, we are talking bankruptcies. None of that is for the good of the consumer.

It's really a 2 horse race in cellular. Sprint sucks. T-Mobile is cutting another 900 jobs. They already have morale issues over there. This will just be another coffin nail.

T-Mobile does have options though. Merger with an ILEC like CenturyLink or Frontier. Merger with US Cellular, which TDS mainly owns and appears to manage well. Leap, Cricket and MetroPCS are all in play. Will it be Sprint or T-Mobile that go there first?

Lightsquared has filed for bankruptcy. It was another risky gamble to buy spectrum and try to use it for purposes other than what it was designated for. You went all in LSQD and you lost. Live with it. Business is a gamble. It's just the first time that the house (the FCC) wasn't totally bought and paid for on your side.

I guess without a stacked deck of cards, the telcos kind of suck at poker.

Read more... [A Game of Risk]
 
Sprint is Losing
On Rad's Radar
Thursday, 17 May 2012 07:01

I have had Sprint for a long time. Mainly, I have them because I don't like to give my money to the RBOC cellcos. I may just have to switch.

Sprint's network makes me think that THEY are an MVNO. The thing is constantly roaming. I am in NYC and the Samsung EVO Touch is constantly beeping at me that I am roaming. In NYC. In Tampa. In Miami. I am not talking rural America.

__PLACEHOLDER__
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Sprint can not win customers with this type of service.

I had to give up my Blackberry Curve because it was just too slow and old. Sprint doesn't carry any Blackberry phones that have a good rating. I ended up getting a good deal from Sprint Retention for the Samsung Evo Touch. It's a tablet, not a phone. The keyboard is a pain to use and slows down my texting and email - which are the main uses I have for a smartphone. I can't really blame Sprint for the fact that Samsung making a tablet that they call a phone. I can blame Sprint for an almost useless network and a horrible selection of phones though. The two factors that determine its long term viability.

When Bernstein analyst Craig Moffett said that he was afraid Sprint would BK, I thought he was wrong. After a month of no bars in almost any building and the beeping of roaming, I have to agree.

CEO Dan Hesse had to return a $3M bonus. I say give him the money back as severance and look for a new CEO. Heck, look for a new C-Suite. That company has had a lot of time to fix its ills but it keeps getting distracted by stuff like Lightsquared.

Sprint had the perfect partners in the cable cartel with Pivot and other JV's. It blew that. Now VZW is courting them.

Clearwire is a cluster. Just buy it and build your 4G network already!

Wireline - you have the famous pin drop network that you fail to utilize. What's up with that?

Sprint was the MVNO for Qwest and lost that to a sales agent deal to VZW. How is that possible?

Sprint has the FMC Integration with MITEL and Broadsoft, but it takes almost a year to get to contract. And likely those partners will be as disappointed as Qwest and Cablecos.

These are real problems that management at Sprint are ill equipped to deal with apparently.

How come they were last to get the iPhone and have no exclusive handset deals for a cool phone?

Why did they make a $20B commitment to Apple for the iPhone? At $500 per phone, that's more than 1.5 million phones per quarter. Two million phones per quarter is $1B. That means it will take more than 20 quarters - 5 years - for this deal to pay off. It won't work. Just another bad deal for Sprint and Hesse.

Read more... [Sprint is Losing]
 
Polycom Gets Some Cash
On Rad's Radar
Friday, 11 May 2012 09:22

So Polycom announced that they will "divest its enterprise wireless voice solutions business to an affiliate of Sun Capital Partners, Inc. for gross proceeds of approximately $110 million in cash." I was confused by this until I realized it is a sliver of their business and represents DECT and Wi-Fi handsets only.

Polycom is in the process of remaking themselves from a hardware IP Phone company to a video conferencing solution provider. This was a way to get some cash and start selling off pieces of the business that don't fit that focus.

Read more... [Polycom Gets Some Cash]
 
Robo-Calls
On Rad's Radar
Friday, 11 May 2012 09:07
I need to learn not to answer the phone if I don't know the caller. It's always robo-calls. And it is usually a Level3 number! 407-412-9892 was the Florida PAL. When did they start robo-dialing? I don't give money to phone solicitors anyway, but robo-dialing for dollars? How does that work?

469-341-0230 is another Google Local Search results call. I get a lot of those. Does this actaully work? I would guess that it would have stopped if it didn't.

The FCC is useless when it comes to robo-dialing. It really needs to be stopped by our own industry, but there are too many greedy and needy  folks in this industry for it to ever stop.

I actually got a call from an agent asking me for phone numbers for his client in Indonesia that needed throw-away numbers for craigslist ads. If he was standing next to me I would have knocked him over for even telling me that he helped that business. He may not hear for a few days though.

If you are in the robo-call business, don't tell me. I'll be too tempted to punch you in the face.

Read more... [Robo-Calls]
 
The Incumbent Mindset
On Rad's Radar
Thursday, 10 May 2012 10:02

I'm heading to NYC next week to attend Seth Godin's seminar. It is always worth the trip to me. From his Domino Project newsletter today, a little insight:

"It happens to just about every industry, from hard drives to furniture--the insurgents, coming up from the bottom of the market, had an incentive to refine their techniques, engage with their customers and innovate. The incumbents, saddled with much higher costs and less innovation, watched themselves go bankrupt, one by one."

Can you say China? HUAWEI? Vonage? 8x8?

Every market gets disrupted. The Internet has been the greatest tool of disruption. Think about Netflix and Google Apps.

"Instead of working hard to keep their share of a shrinking pie, or working even harder to make sure the industry stays as is, I think the most essential thing legacy book industry players can do is set up independent ventures with great people and little interference and work really hard to put themselves out of business by starting at the bottom, not by reinforcing the top."

Some ILEC's like Windstream, TDS and CenturyLink have used acquisitions as a way to counter-balance disruption that broadband and cellular have done to the market. M&A will only get you so far.

We are already seeing where Live365/Office suites have become a commodity. VoIP is certainly sold as a commodity. Hosted PBX is probably next. Any time you can automate it, someone will come along, with less costs, and undercut your price. The Incumbents will have to take the hit just to stay in the game. Look at CLEC's and the T1 market. The cablecos are disrupting the T1 market. Next it will be MPLS.

It will be skill set, human talent, integration, customer care, and WOM that will set your product offering apart from the rest of the crowd.

That Seth Godin always gets my mind going.

Read more... [The Incumbent Mindset]
 
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