Here Comes May With The Flowers

In Spanish, this funny sentence means “here comes what we all knew was coming”. May is not going to come with blizzards, thunder storms or gail. It comes with flowers.

And so it came what a couple of weeks ago lifted the dust from the floor at Mobile 2.0 Barcelona.

Vodafone announces second quarter results, plummeting a 13.6% in the stock markets. And of course it points the accusatory finger towards Telefonica – why sinking in the mud has to be a solitary excursion into Hell? Let’s drag everyone down with us. And let’s also do a Michael Jackson and “Blame It On The Boogie”, so Vodafone’s CFO goes public blaming its disaster on the Spanish real estate bubble. The financial press cannot make sense of the latter, when there are other indicators that clearly explain Vodafone’s demise. What happened there? Are CFOs choosing a style of justifying results with the nearest scapegoat in hand? So what happend at the close of markets? Telefonica, which has more diversified revenues and some of them performing strongly, thank-you-very-much, sees its stock fell 5.56% amidst the bonanza, the third biggest fall of the year. Thanks, Vodamate!

In the meantime, back at the other side of the technology ranch, Ericsson sees its telecommunication revenues fall by 70%. from €677m to €201m

At the same time, in a galaxy that was far, far away but lately in everyone’s pocket, Apple announces record results, closing its third quarter with revenues of €675m, about 30.8% up over the previous quarter.

Puzzled? Confused? or ready for the biggest shake up in years of the mobile industry?

3 Responses to “Here Comes May With The Flowers”
  1. Jaime says:

    It’s time for the Telcos to take some decissions and to leave their “undefined state” with the ecosystem around them.

  2. inmamartinez says:

    Can you elaborate on this, Jaime?

  3. Jaime says:

    Telco companies in all countries can be defined as an oligopoly, and this means that a small number of companies “have been” dominating the ecosystem. Telco companies has been making a lot of money with voice and data with any restriction in their business models. They decided when, where and how much, without collaborating with customers or other ecosystem companies, and going alone to the war is the best way to go to bankrupt. They were sucess in the early stage of the 1997 – 2004, but they didn’t evolve when people and ecosystem started to take decisions far from Telcos way of thinking. Users decide some time ago that the cost was very high for data and premium content, and the quality of that data was’t enough. At the same time, other companies in the ecosystem decided to change some business models to adapt their products and services to the users. Telcos didn’t hear or didn’t want to hear the users and companies in the start of a new age. Now, users have the knowledge to get mobile content from other sources different than cellular networks, and they want the content for real free, most of the time. Users asked for data plans in the same way like DSL connections, and non Telco companies created technology, tools and content for the users request. New communities appeared and new ways of distributig the data and info started to be used by users, but Telco companies continue with their old business models, walking to the disaster in my opinion.
    Two years ago, some people told Telcos that was time to take decissions about the new way of thinking of users and other companies, ecosystem was evolving without them and they couldn’t stop that. They answered saying that was time to recover the invest in infrastructure and users and other companies need to wait for them.
    But what they couldn’t understand was that users and companies were not waiting for anyone. Users changed the role and decide where, when and how. Signs were in the market, numbers going down every year since 2006 for premium content, data traffic was not returning what expected and voice was a plain line in the graph. They dind’t take decissions and they went to a limbo.
    Now we have two strong variables, an economic gloom and a market evolution. If they don’t take the right decissions with the ecosystem, they will loose the race.
    It’s the moment for them to decide what to do with data traffic plans, roaming, premium content, mobile marketing, technology fragmentation, new kind of devices, usability, etc. Are they going to be the new ISPs in the market? Are they going to be content providers? Are they going to define the key to create and defend the user profiles? Could their networks be profitable at same speed of ecosystme evolution?, etc.
    I think that the answer is being AGILE, and we can find very good cases in the market as Turkcell, but its only my opinion.

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