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Viodi View Newsletter - June 8th, 2005

Viodi's Local Content Workshop

Youth are the Future.  No, the Present

by Ken Pyle, Viodi, LLC

[note, an edited version of this article was published in the latest issue of Telephony's Independent Magazine].

Independent Telcos have historically led their larger industry cousins in the deployment of new technologies and services.  Today, they continue to innovate as evidenced by the 100+ deployments of last-mile, IP and ATM networks.  While others have studied, analyzed and theorized, independent telcos have empirically proven that the triple, quadruple and, even, quintuple play supports the investment required to implement these expensive networks.  There are numerous examples of independent telcos that have expanded beyond their incumbent exchange area, effectively growing their subscriber base by fifty, seventy five and, sometimes, over hundred percent since the 2001 downturn. 

Despite this success, the outlook for independent telcos remains uncertain.  With pressures on the Universal Service Fund and changes afoot with Intercarrier Compensation, Independent Telcos can clearly no longer rely on the stable regulatory environment that used to assure a return on investment.  The rapid technological changes in the communications industry are forcing Independent Telcos to deploy networks with a much shorter time horizon, as compared to years past.   

One of these technologies, Internet Protocol, is effectively causing a disintermediation between the content producer and the content consumer.  With new ways of communicating, like Session Initiation Protocol, more of the intelligence is in the end points as compared to traditional networks, rendering the independent telcos’ networks a potential commodity.  As the network becomes commoditized, even the most rural independent telco will face the specter of global competition.

By global, the competition will not only come from domestic and international telecom carriers, but, as discussed in an earlier column, from entirely different business segments.  For instance, AOL is now offering Voice over IP, while Google is seriously dabbling in video storage and distribution.  Companies, such as Virgin Mobile, have already proven that a well established brand and a well executed marketing plan are perhaps more important than the network itself.  The potential entry into the wireless business by hip-hop moguls, such as Sean Combs (aka P-Diddy) and Russell Simmons, indicate that fashion and fads will have an ever increasing role in telecom. 

Talking About Their Generation:

I hate to sound like such a prophet of doomsday.  In fact, I believe that most independent telcos will successfully make the shift from being regulatory and technology focused to becoming market-driven organizations.  By combining new product features together with soft attributes, such as a strong brand, superior customer service and reliability, Independent Telcos will continue to grow into the 21st century.  The question is how will Independent Telcos get the feedback from customers that they need to help them make the necessary changes to their service; in a word, youth. 

It is said that youth are the future, but in today’s rapidly changing environment, youth are really the present.  Youth can play a big role in a telco’s evolution to a market-driven organization.  Kids today are doing some amazing things.  I run a web board written by a 16 year old and supported by 13 year olds.  A decade ago, the development of such a complex software package would have required a team of highly paid professionals.  In my definition of youth, I would consider the young at heart, as well.  There is nothing more exciting than seeing a seasoned citizen, freed from shackles of a lifelong, creative crushing, corporate career, embark upon a new passion. 

The youth are signposts for the future and their behavior today points to where a telco’s service has to evolve.  Some of the ways independent telcos can incorporate youth into their present include:

• Content creation – Instant messaging, blogging, online gaming; at first glance, these activities do not seem like content creation, but they point to the increasing democratization of content where the flow between producers and consumers will be much more symmetric as compared to the past. 
• Reverse Mentoring – A common lament among parents is that their kids know more about computers than they do.  Reverse mentoring is an opportunity to get kids involved in the community, while educating the older folks who don’t have time to figure out the intricacies of technology.
• Advisory Boards – Why not directly tap the ideas of the local youth by forming monthly advisory boards?  Work with the local schools to help form these boards.  Make it a big deal and an honor to serve on such an advisory board. 

Telcos also need to tap the young adults in their communities; those in their 20s and 30s.  Chip Arn, an expert on Church growth, suggests that a characteristic of a growing Church is that twenty percent of a Church Council will consist of new members (i.e. people who have been members for less than one year).  Similarly, I would suggest that for an Independent Telco to grow, its board should include one or two members who are relatively young.  Young adults will provide energy and a new perspective to an independent telcos’ board. 

These ideas just scratch the service of what can be done.  Exploring these and other ways to involve youth in a telco’s fabric might be a bit uncomfortable, as it could mean having to consider fashion when deciding service feature sets.  It also might mean taking the telco in a new direction on an uncertain path.  This approach may seem risky, but it, in the end, you might just find the kids are all right. 

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