Models for growth

Posted by: Rafael Gomez Bertrand
22 Jan 2012
Following the conclusions of the e-G8 in France, everybody in the sector seems to agree that the current model of growth where the operators invest in the networks and the internet players benefit from positive externalities through the free use of them is unsustainable. On the one side, the operators ask for a model that matches the financial equation (CAPEX and ROI), and on the other side, the internet players request a model with no bridle to the innovation. Ultimately, we need to find the model that will help the digitalization of the economy to flourish maximizing the public interest. The operators could reinforce their strategy evolving towards RCS (i.e. Spanish market), developing verticals - Security, health, financial, ? - (i.e. AT&T, Telefonica) to .help the different sectors in the online world ? Digital Coach - (i.e. Orange) and adapting their organizations creating a separate business unit to develop the digital services (i.e. Telefonica, Telenor) The rapid pace of the technologic evolution has surpassed the society somehow, with a proliferation of services that do not maximize public interest ? Quality, interconnection of networks, universality -, or not guaranteeing the respect of the intellectual property rights. This situation is leading to country specific solutions depending on the different interests in each country (i.e. US with SOPA and PIPA). Middle Eastern countries could develop and implement their own transformation of the telco business model, the one that will help the economy to evolve from hydro-carbons based to knowledge based, leveraging on their financial resources and the ability of their population to rapidly evolve Rafael Gomez Bertrand Bertrand.1973@hotmail.com