Consultant Temp Omits Context for ATT and Google FCC Dust Up
September 28, 2009
I thought ATT was miffed because Google Voice can block calls ATT cannot. With Google’s method Google gets an edge over ATT. Big surprise, right? The Google can block calls to places like Harrod’s Creek. ATT can charge more for this type of connection. I know. ATT is my phone company.
Then, I read “AT&T Calling Google a Noisome Trumpeter to FCC”. Gerson Lehrman Group is a rental agency for consultants. The idea is a good one. Save the big fees imposed by McKinsey, Booz, and Boston Consulting Group and get solid advice. I think it works reasonably well in this belt tightening market. The analysis of the ATT and Google dust up over Google Voice does what most MBA-inspired analyses do: Describes what’s in the newspapers. One comment caught my attention:
AT&T points out the FCC’s fourth principle of the Internet Policy Statement to be about competition among network providers, application and service providers, and content providers. The FCC issue will be if customers with IP connections are favored in making calls with lower costs and more UC capabilities. The goal for the U.S. market has to be that competition improves communications connectivity regardless of the type of provider.
My view of the squabble is that ATT now realizes that Google is a next generation telecommunications company. In fact, Google’s engineers have pushed into technical fields that were converted to Wal*Marts and Costcos by the “old” Baby Bells. Like farmers angered with new uses for their land, the farmers want to go back to the halcyon days of the past.
Google has marginalized the past, particularly with regard to telecommunications in four ways. None of these is referenced in the consulting firm’s analysis:
- Google has built a global infrastructure that provides digital or bit-centric services unencumbered by the methods and systems that US telcos in particular provide their customers. The platform approach means that telco is one business thrust, not THE business thrust.
- The technology in play at Google is in some cases based upon a Bell Labs-style of investment; that is, bright people working on big problems. When a breakthrough emerges, Google makes an effort to allow various Google units to “do something” with the invention. I would direct the GLB MBA to how Google has learned from a patent application that has now migrated to Alcatel Lucent. ATT had access to the same invention, missed its significance, and now faces a significant challenge in data management. Just one example from the dozens I have gathered, gentle reader. ATT’s research arm, while impressive, is not like Google’s. I think Google has some refugees from the “old” Bell Labs too.
- ATT, like other US telcos, continue to resist what seems to be an obvious tactic—exploiting Google. In the US, companies like ATT prefer to block, chastise, and criticize aspects of Google that are little more than manifestations of its applications platform. Google Voice is an application, and it is not a particularly smart one as Google apps go, based on my research. Instead of asking the question “How can we exploit this Google service?”, the response from publishers, media companies, telcos, and some government agencies is to put Google in a box and keep it there. As I argued in 2004 in The Google Legacy, the river of change has broken through a dam. The river cannot be “put back.”
- Analyses that convert a long document into a summary are useful. I do this myself, but when that summary leaves out context, the points without proper definitions float like a firefly’s disembodied glow. What else is Google probing in the telco space? That’s an important question because ATT is dealing with a probe, not an assault. Is ATT missing a larger strategic challenge? Can an Apple ATT tie up win in a game that Apple and ATT not fully understand?
To wrap up, the addled goose gets very nervous when he meets agency rental sporting an MBA name tag. By the way, what does this mean: “The letter to the FCC is from AT&T’s Federal Regulatory and deduces from the hearsay about blocked rural calls that Google saves on the higher termination costs imposed by rural telcos.” Too much MBA sophistication for me.
The tag on the bottom of the article speaks volumes, “Request a Consultation.” This addled goose is quite happy, however, to see the article labeled as a marketing item just like this Web log.
Stephen Arnold, September 28, 2009
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