How the cheapest X86 with 6 ports can solve the 4 biggest telecom industry problems!
The 4 biggest telecom industry problems are:
1) lack of new revenue streams to offset call and sms falling revenues.
2) high churn because connectivity is a commodity
3) due to a data explosion without new revenue, costs of the network need to come down substantially
4) over the top players provoke the data explosion but generate no revenue
Before you can understand how these 4 problems can be solved, you first need to understand how Canonical (the company behind Ubuntu) together with a limited group of brilliant partners converted the cheapest X86 with 6 ports into the smartest switch of Mobile World Congress 2015.
Now imagine that this smartest switch or its official name Software Defined Networking Appliance (SDNA) was not a switch but instead was a customer premise equipment (CPE) that a big telecom operator had installed in a small shop. The shop owner would have used the Telecom operator’s Snapp Store to buy the Balabit Firewall, F5 Linerate, a Microsoft solution, etc. Since The operator gets a revenue share from all the solutions and snaps that get sold on top of their CPE as does Technicolor who build it, all of a sudden Technicolor is willing to provide The operator with free CPEs and the operator converts a device that used to cost a lot of money into a big revenue generator. This is an example of how problems 1 and 3 get solved. Now since this shop owner also bought Devicehive and Kaa Snaps all of a sudden all his lights, heating, ip cameras and the display in the shop window are connected to his CPE. Thanks to a brilliant Kaa Twitter Snap, his shop has become a national social networking hit and press has been filming his shop window all day long. Do you really think this shop keeper would want to change his CPE if a competitor would offer him a €5 discount on broadband? Problem 2 just got solved.
Now imagine that Alcatel Lucent would create a SDNA based on a Cavium board and install it instead of the DSLAM and Amazon would come along and say that if they allowed them to put Snaps from some of their biggest video streaming and gaming customers they would pay Alcatel Lucent and the telecom operator 50% of the revenue. All of a sudden problem 4 is solved.
Thanks to some more ideas from Canonical, a whole bunch of other telecom solutions become free and revenue generators and Fairwaves, Dataart, Metaswitch, Forgerock, Telestax, Truphone Labs, Nymi, Nwave, Lime Microsystems, Chaos Prime and Cybervision all get bought for billions.
However this cheapest X86 is not only going to solve the four biggest telecom problems. It is also going to solve several other problems. It is going do to away with senseless telecom middle management that send 5000+ questions in RFPs, complete lack of innovative thinking and years to go from idea to production.
Our next idea is how to convert all the ideas in this blog in products that are in production in a test site before the end of the year, rolled out at large scale before the end of next year and the next time a telecom operator wants to buy innovation they can do a complete procurement activity in two hours.
Edited. See here for our next idea.