Telco Architecture
Closed vs. Open Systems
- Closed and proprietary, closed switching network, a legacy pre-divestiture AT&T Bell System voice mail that returns calls, stereo call waiting, lack of innovation.
Co-opetition vs. Competition
- AT&T grew to have two fundamental beliefs: have to be everywhere (universal service) and have to provide it all ourselves (vertical integration). Bell System monopoly did everything from manufacture equipment, instal it, operate the network, provide customer service — for a Montana farmer or GM headquarters in Detroit.
Organizational
- Telcos have regulated vs. entrepreneurial mindset. Win by winning over regulators.
Technology
- Telcos’ network optimized for voice, not data. Can be overcome, but involves primarily addressing the “closed” technology from which today’s networks are built.
Pricing and Profit Model
- Current pricing is based on time and distance, disconnected from cost or value. Consequently, pricing based on capacity, priority, and, most importantly, on the utility of services that are, architecturally, layers above today’s commodity communications services, is enabling next-gen. players to cherry pick most profitable customers.