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| Telcos should embrace Web 2.0 but must own applications, not just carriage |
[SINGAPORE, 17 June 2008] Telcos should embrace Web 2.0 applications but need to ensure they own the application, not only the carriage, according to Jeffrey Soong, CEO of Hong Kong based IP solutions provider BNS.
In the opening address of the 'Content Counts' conference track at BroadcastAsia 2008 in Singapore, Mr Soong said that while social media is less about profitability and more about creating customer loyalty, it is the availability of Web 2.0 applications that may persuade these customers to renew their phone, broadband and IPTV subscriptions.
"If telcos want to maximise their opportunities they need to build their networks from the perspective of services, applications and a great user experience," Soong said. "One of the key success factors specifically for telco operators is realising that being a total service provider means not only relying on technology as innovator, but enabling cross-platform portability and uniform user-interface standards to improve user-friendliness in order to control the whole value chain, not just the carriage."
Soong recommended telcos to adopt a strategy that combines owning applications, removing barriers for customers to use their services and exploiting the interactive capabilities of IPTV services.
Citing PCCW's snaap! service as an example, Soong said that while the service may have limited appeal at this stage due to platform dependency, it showed how a telco can maximise its own network infrastructure and quadruple play services.
Soong also gave a cautioning example of how not to approach Web 2.0 with Verizon, which recently announced it was moving its social networking site to Facebook.
"The lesson learnt from Verizon is basically: don't try to re-invent the wheel. People don't want to create their umpteenth social networking site for yet another new service. Instead, partner with key UGC sites that give you instant social networking facilities which you don't have to spend money on maintaining."
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About BNS Ltd
Headquartered in Hong Kong, BNS provides IP-based content and technology solutions for broadband service providers and enterprises interested in maximizing their potential with IP-based solutions, such as Telco IPTV, Internet TV, MDU IPTV, Mobile TV and Enterprise A/V. The company has extensive hands-on experience in all facets of design, implementation and management of broadband networks in Asia and is the preeminent specialist on content across all platforms in the region. www.bnsltd.com
Media enquiries: Anke Gill, agill@bnsltd.com, +852 21809918
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