GSM: On beyond voice >BY STEVEN TITCH, Editorial Director >TX I am most likely taking more anticipation than I'll need as I pack for the GSM World Congress in Cannes this week, but then again, I never quite mastered the art of traveling light. What does
1997 will be the best-and maybe the last-hope for the Bell companies to make a true profitable business out of America's rush to the Internet.
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After almost two years of confusion, false starts and downright fumbles, many of the Bell companies are starting to feel like they're finally ready to crack into this market. Truth be told, they have much reason for optimism.
Late last year, every Bell company but U S West joined forces in a mega-licensing pact with Netscape Communications Corp., allowing them to offer their 72 million phone subscribers a free version of the Netscape browser.
The kicker, of course, is that when customers get a free browser, they'll be expected to link into that telco's Internet service. This month we'll start seeing campaigns from many Bell companies for cheap Internet access, discounts on second-Internet-only-phone lines, and maybe even cut rates on bundled Internet ISDN or digital subscriber line service.
Telcos also are looking at customizing the browsers to make them easier to set up, add on-screen computer buttons to get customers to special sights and even make Internet setup a one-mouse click operation. The new Netscape browser will even give customers e-mail capability.
And the Bell companies have more going for them than just a neat marketing package. They also have their best window of opportunity in years.
The headline-grabbing miscues of America Online brownouts and busy signals are playing right into the telcos' hands. Several telcos are preparing to air radio and even TV commercials targeted at disgruntled AOL users that tout their own Internet services.
Yes, as the winter skies clear, it sure does look like the stars are finally lining up for the Bell companies' Internet future. But a few clouds remain.
Even with AOL's stumbles, Internet TV and cable modems are offering consumers low-cost alternatives to Internet via PC. So telcos need to think "value-added" to take best advantage of their Internet push. To me, that means paying attention to three key areas.
The first is support. Telco files are brimming with letters from customers burned by their attempt to get ISDN service. The technology is more than 10 years old, yet line connects can take months-if available at all-and cost over $1000. Customers will remember that when they're deciding whether to sign up for yet another new service.
It's not clear how much help a telco rep will be when you want to know what happened to the e-mail you sent your boss from home on your day off. Phone companies haven't exactly sent crowds over to Netscape for software training.
The second area is billing. Certainly, one of the appealing aspects of getting phone and Internet service from the same company will be to get a simpler bill-and maybe a discounted rate. For now, there are no sure signs the Bell companies will be ready to deliver.
And finally, there's vision. Seeding the market with browsers could help push the phone company into many value-added areas. Imagine, for instance, that you have a secure virtual private network between your home and office-and even your hotel room.
It would be great to know that your telco's Netscape package could link you to the office and that no snooper could eavesdrop. That is technically possible today, but it takes network architects and security designers to beef up the Bell company back offices to do it.
For now, Netscape and the Bell companies are quiet on this point. Translation? Don't hold your breath.
But let's end on a high note. The Bell companies appear ready to get aggressive in the Internet business. They have products, plans and pricing in place. Congratulations. But, for the Bell companies to taste-and not just smell-success, they'll have to keep one thing in mind: Browsers are not all there is to making money on the Internet.
Vance McCarthy is a freelance writer based in Foster City, Calif. His e-mail address is mccarthy@batnet.com.
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© 2012 Penton Media Inc.
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