TECHNOLOGY SPECTATOR: The enemy's new toys
Imagine a world where telecommunications customers don't need voice services any more, but just data. Not so hard to imagine. Now imagine a world where WiMAX and Wi-Fi are so pervasive people don't even need a mobile data network.
What happens then, asked SingTel's Loo Cheng Chuan at this week's Amdocs InTouch business forum. His answer? Telcos become like Kodak. And that's not a risk Loo is willing to take.
Loo, who leads innovation at SingTel, was responding to an audience question on why companies should invest in bleeding edge technology, when often revenue growth can be driven by leveraging existing systems to do more.
The problem with this approach, as Loo sees it, is the telco sector is no longer facing threats from traditional competitors.
The race is now against innovative young start-ups that come and eat your lunch without you knowing where they came from, he says. Viber is one example – a free voice over IP service for iPhone that attracted 12 million customers in a little over two months, and as Loo says, is killing mobile roaming services.
Standing still, or relying on traditional revenue streams, is no longer an option for telecommunications companies.
So what are the trends SingTel is watching through the idea factory led by Loo?
The first is new user interfaces.
Apple makes a killer touch user interface, but what about the option of not touching?
Think voice recognition and voice response, since, as Loo says, we're not yet ready for mind control.
On display at Amdocs InTouch was a tool that utilises the 2d cameras in most phones to allow you to control the screen simply by waving your hand in front of the device. So Minority Report finally looks like the real world.
The second big trend on SingTel's radar is what Loo calls the 'fifth screen'.
In car applications such as music, television on demand, and voice activated services including news. Think driving while tweeting.
Lastly, is what Loo calls the 'sixth sense'.
The idea is organisations knowing what we want before we do. Predictive engines or personalisation engines will drive more sophisticated offers, and it will happen everywhere.
Data from our social media use is already making its way into CRM platforms.
Combine information an organisation holds on our past behaviour and purchase history, with information on what we say we like, or for that matter, dislike, and you have a much more powerful marketing engine room. We give so much information about ourselves away on the web – now that data is shifting to mobile devices, and it's going to be game changing.
Telcos could put all of this in the too hard or too hyped basket, but given the declining fortunes of Kodak, Nokia, and RIM, embracing change may be the only option.
Charis Palmer travelled to Amdocs InTouch Asia Pacific as a guest of Amdocs.