Product Strategists At Telcos Shouldn't Obsess About "Bit Pipe Syndrome"

Product strategists in various industries tend to dismiss telcos' role in service innovation, focusing instead on disruptors such as Google and Apple. It is true that new entrants and over-the-top (OTT) players have bypassed carriers, reducing their role to bit pipes. While communications companies are being commoditized to the point that they will become utilities, there is no shame in monetizing networks — carriers' bread and butter for a few more years. However, when it comes to product innovation, operators have key assets to leverage — particularly their billing capabilities — to become trusted parties for consumers and third parties. Some global carriers have a strong presence in emerging countries, and they will have more sway in shaping the types of content services the world consumes. Product strategists at operators face a service innovation imperative and should focus on gaining more pricing power and delivering more segmented offerings, either on their own or with new strategic partners.