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Google says that if everything is turning into bits, service providers need to figure out how to make money as a dumb pipe
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Should Service Providers Become 'Dumb Pipes'?

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redbull187
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redbull187,
User Rank: Light Beer
12/5/2012 | 5:39:42 PM
re: Should Service Providers Become 'Dumb Pipes'?


While one cannot disregard Google success. One can certainly say WOW ! What a dum lowbrow comment from Google. 


 


 

tmmarvel
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tmmarvel,
User Rank: Light Beer
12/5/2012 | 5:39:36 PM
re: Should Service Providers Become 'Dumb Pipes'?


Sure. Connectivity service between user devices and content/service PoPs, as well as between PoP, inter-provider NAPs etc. That is the sustainable model for network service providers.


(It is like providing electric power: it shouldn't matter to the power company what the customers use the electricity for -- all uses of it drive the revenue opportunity similarly. And if the same standard of electricity service works for all customer needs, not discriminating between different use cases just lowers the costs ie increases the provider's profits.)


And the plain network connectivity provider is good model: the demand for ie revenues achievable with network connectivity service keeps on growing as the individuals, businesses and societies become increasingly more dependent on anywhere to anywhere, always on type of network connectivity, with ever increasing bandwidth and quality expectations. The challenge is to innovate, to keep the costs of providing the connectivity services below the revenues achievable.


And there are innovations available to allow simplifying the networks for plain connectivity service, if the provider only looked at it that way. Instead of complicating the service delivery platform by competing with OTT services, and/or doing DPI etc, simply do nothing more than connect the customer's requested access points with requested bandwidth etc QoS parameters, and allow the OTT services etc networked apps grow and grow your network service business with it, while innovating to keep complexity and costs of that revenue generating connectivity service at minimum.


The result: simplicity, efficiency and focus on core business leads to profits, just as complexity, inefficiency and chasing after all the latest cool apps leads to the type of performance (look at eg return on sales and return on assets) we're seeing from todays integrated/diversified telcos.

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