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Telco 2.0-Compliant

Some people who’ve read the Telco 2.0 Report have asked us for a snappy way of testing if their company is ‘Telco 2.0-compliant’. The manifesto’s a bit wordy, so here’s a shorter suggestion, followed by even more disgested ones:

“A ‘Telco 2.0 Compliant’ operator acknowledges the decreasing market power that owning network distribution offers, the increasing loss of innovation that walled gardens cause, and the threat of disintermediation of service revenue by Internet-based players.

It accepts the inexorable trend towards more horizontal market structures, the unbundling of value chains, specialisation and partnership.

A compliant operator will:
- empower users and partners with a platform to access to non-network assets such as billing, retail, identity, distribution and payments.
- vertically integrate services, access and devices only where there is a clear technical or user need.
- provide end-user services only where there is a defensible advantage over Internet players, based on costs, scale, security, flexibility, trust, standardisation or integration.
- seek new ways of funding and pricing network access that reduce operational cost and wasteful infrastructure duplication.”

…One-sentence version:

“A ‘Telco 2.0 compliant’ operator specialises in those elementary functions it has an advantage in compared to Internet-based players, and avoids vertical integration of access and services unless there is a compelling technical or user need.”

…Or, in summary:
“T2-compliant operator = the stock market believes it has long-term sustainable basis for growth in an IP-based world”

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I hear the term "vertically integrated services" mentioned regulary in this blog as well as other telco related articles. But I somehow could not find a clear explanation what it means. Could you elaborate further what this term means and how telcos are affected by it.


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