Feeds

Operator greed kills online services

And now HP wants to help them target us with ads

Boost IT visibility and business value

Ninety-five percent of mobile services fail in the market - and it's thanks to greedy network operators who have treated their customers as a lumpen mass.

That's according to Steve Dietch, the chief marketing officer of HP's OpenCall group, which sells communications software to telcos and represents a third of HP Software's revenues.

"Compared to Japan and Korea, operators in the US and Europe have taken a disproportionate share of the revenue - as high as 70 percent - then they're surprised that they're not getting good content developed, or that developers are going out of business," he added.

"95 percent of what's being offered is failing. I think the operators realise something has to change, and that they've been a bit too greedy."

Dietch said mobile operators have spent too much time trying to compete with content providers and not enough on monetising their own unique capabilities, such as knowing the user's location and at least something about their availability.

Content providers and carriers alike focus too much on the 18-25 age group and not enough on older age groups, he continued, even though the latter have more disposable income. Plus, they blast content and adverts out, instead of using the information they have to target it properly.

"Our focus is helping telcos avoid becoming dumb pipes and use their networks to their advantage," he said. "The operators are the only ones with a direct touch point and understanding of the customer. But they don't do understanding well - they tend to treat everything as a mass market.

"The big reason services fail is that you tend to deliver the wrong content. We're trying to move from a mass market to the individual."

He claimed - perhaps just a tad optimistically, given all the earlier evidence of operator greed and ineptitude - that advertising to the individual could mean fewer ads, not more, as they'd be better targeted.®

The Essential Guide to IT Transformation

More from The Register

next story
Scotland's BIG question: Will independence cost me my broadband?
They can take our lives, but they'll never take our SPECTRUM
Bring back error correction, say Danish 'net boffins
We don't need no steenkin' TCP/IP retransmission and the congestion it causes
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
NBN Co adds apartments to FTTP rollout
Commercial trial locations to go live in September
Samsung Z Tizen OS mobe is post-phoned – this time for good?
Russian launch for Sammy's non-droid knocked back
Telstra to KILL 2G network by end of 2016
GSM now stands for Grave-Seeking-Mobile network
Seeking LTE expert to insert small cells into BT customers' places
Is this the first step to a FON-a-like 4G network?
What FTC lawsuit? T-Mobile US touts 10GB, $100 family-of-4 plan
Folks 'could use that money for more important things' says CEO Legere
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.