Monday, March 10, 2008

New Corporate ISP League Table for 2008

Our New Corporate ISP League Table for 2008, can be picked up free from our here.

This is our January 2008 baseline. It shows you exactly where the UKs largest companies sourced their Internet Services on the 20th of January, 2008.

Your chance to catch up with BT's ongoing battle with Verizon for the top slot. The new league table has been widened to include the Internet services of the companies that make up the "FTSE All Shares Index", including BAe, Tesco and Tomkins.

The big news is, that as the Internet services market suffer it's heaviest downturn since the Tech' Crash, UK based service providers are once again struggling to compete with their US counterparts.

Register when you pick up the league tables and we will send you the figures as soon as we have them.

Thursday, March 06, 2008

Julius Baer backs down over Wikileaks

A good day for free speech as Bank Julius Baer (BJB) decides not to pursue further action against the whistle blower site Wikileaks. If you recall they won an injunction in February to close the site down, that caused a mixture of concern about restrictions to freedom of speech and high entertainment over the inept methods of both Bank Julius Baer and the California courts to get the information off of the web.

But we shouldn't be too pleased, the law found in BJB's favour. BJB, has decided not to proceed because of the negative publicity the exclusive Swiss financial management company has received from the story. It has been posted on thousands of blogs and news feeds around the world, reaching in turn 100's of thousands of people who had never heard of either party - a sort disastrous viral anti-marketing!

CW: PanAm or VirginAtlantic

This weeks analyst call was a toughie for CWs pilgrim and his team of Energisers. I just watched webcast; skip the bit about the Caribbean, it's all phone minutes.

Times Online reported one analyst saying: “Their plans are far too long term for this market. They need a quicker fix than this.” Mate! Go find something else to analyse! If you haven't worked out that there is no quick fix for telco, you're' in the wrong job.

It's not a CW specific problem; it is the same for all the Telco's: After 100yrs of selling voice minutes somebody invented the Internet, and that's having the same effect that airliners had on oceanliners. Massive increase in traffic, loads of competition, and a huge drop in revenues per head as customer choice expands.

In todays financial markets this is a recipe for volatility, and volatility = risk. SO, vicious circle; everyone's risk averse, so everyone's looking for the quick fix, and there isn;t one. The answer for the service providers is to sell core services, to valuable customers over their own networks, and, once they have those customers keep them. Not so simple as it sounds.

After years of volatility, crashing stock prices and stranded passengers; the airline industry introduced Revenue Management in the '80's. They filled their planes with the customers who provided the best economic return. First class, business, early bookers, flexi-tickets, block bookers, loyalty card holders, late bookers all became categories that were given quota's, and managed using sophisticated booking models. They didn't invent anything, or come up with fabulous new killer services! They just provided a core service and managed their customers more effectively.

Telco's must do what the airlines did, introduce Revenue Management and fill their networks with valuable customers. It was realising this fact about 4 years ago that caused us to give up the day job and start BackChannel.

So, CW, PanAm or Virgin Atlantic? Personally, left to it's own devices I think CW has the potential to become a truly global telecoms provider; they have the network, the services, the contacts and the mindset to do the job. Question is; Do they have the time?