Home - Key Questions - Fixed Networks: Section 6 - Question 15

Section 6: Questions regarding the customers/users

Question 15: Where do the customers/users fit into the picture?

Until this point customers and users have been the great silent force in the story of the evolution of the new telecoms industry. But is this not justifiable since we all know what customers want, don't we?

Wrong! We do not!

Alexander Graham Bell assumed that very few people would want to use the phone he had invented since reception was unclear and sound could only be transmitted over short distances. Besides there was the seemingly superior telegraph. He therefore tried, unsuccessfully, to sell his patents to Western Union for a mere $100,000.

In the early 1980s AT&T predicted, on the basis of advice from the consultancy company McKinsey, that by the year 2000 there would be a global total of 900,000 mobile phones. In the event the figure was 400 million.

E-mail, that from the1980s was one of the major drivers popularising the internet, was introduced by the users of the ARPANET (that laid the basis for the subsequent introduction of the internet) and not by the original designers of the ARPANET who were concerned mainly with computer-to-computer communications. For further details see Defining Visions and the first article in the Articles Zone.

Have we become any better in understanding and delivering what customers and users really want?

The following table comes from the UK's Telecommunications Managers’ Association (TMA), which represents the telecoms managers of the country’s largest users of telecoms services, and is based on data from a survey of a significant number of the organisation’s members.

THE BIG UNKNOWN – THE CUSTOMER!

EVIDENCE FROM THE TMA’s SURVEY:

PROPOSITION PER CENT AGREE
Often suppliers do not spend enough time to understand our business needs

82%

Suppliers tend to sell technologies, not solutions

76%

Suppliers seek to provide long term solutions and not short term products

30%

Suppliers are not experts in providing integrated solutions

69%

Many companies waste money through inappropriate buying of telecoms products and services

80%

Evidence such as this suggests that understanding the needs of specific customer segments is a crucial area that still needs to be properly addressed. Furthermore, the issue of understanding the customer touches on several of the themes that have been analysed in Key Questions.

To begin with, a better understanding of the customer may provide an important way whereby network operators and service providers, all using similar technologies from the specialist technology suppliers, can differentiate their offerings in order to increase their competitiveness.

Secondly, such an understanding may help smaller companies counter the advantages of increasing returns and economies of scale and scope enjoyed by their larger competitors.

Thirdly, the fact that users are frequently an important source of learning and innovation – users have been particularly significant, for example, in making many of the key innovations underlying the internet – suggests that telecoms companies can devise new ways to creatively harness the innovative potential of their customers by actively learning from them.

Do you agree?

How can the various players in the industry interact more creatively with their customers and users?

How can they best come to understand the needs of specific customer segments?

If you wish to express your views on questions such as these go to the Workshop (Area 2). To compare your visions with those of others go to Vision Check.

Recommended Link
Continue to Section 7 - Question 16

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