Thursday, February 02, 2006

Developing Disruptive IP Products for Cable Companies

VoIP has been prescribed for the mainstream residential market by early adopters like market leaders Vonage, Packet8, etc. What has been amiss in this model is, the mainstream marketplace has no immediate need for VoIP because their current PSTN phone is already part of their lives. It would be a hard sell to replace an old reliable POTS. The only marked advantage for shifting to VoIP for this huge market is, no more long-distance bills.

However economical, buyers of VoIP need to have a broadband connection. VoIP should then be more of a product offering from broadband providers instead of the likes of Vonage, etc. In reality, the cable industry has the built-in advantage for market penetration: they offer cable-TV and broadband. To complete the triple-play, they only have to add VoIP to their customers and send one bill for three services. This is a sure winning formula for most busy people.

Expect then to profit from cable TV stocks, which will surely rise. This will be a good long-term investment. The caveat though is, those cable companies should have the likes of Steve Jobs to provide imagination. Even though you own the tollway, you still have to be creative to make use of its unlimited potential.

So where, when , how and what should cable industry do to be major-major player in the delivery of digital services? First off, you hear often of AT&T, Verizon, AOL, Microsoft, etc. But seldom do you get excited with news from Comcast, CableVision, etc. Is there anyone there who will believe that within the next five years, one of these cable companies will be ranked numero uno in Fortune 100? Fat chance, you say. I say bring in Stevie. And the cable industry will transform in one day from just a cable TV provider to a residential services solution provider.

Residential service solution provider is not in the lingo yet of tech services sellers. This will be a new breed of vacuum-cleaner salespeople and Avon ladies of the old days. The products they will be selling will run from toys powered by cable industries very broad broadband, to entertainment, and to medical gadgetry, everything found in the homes, even probably, an internet connected vacuum cleaner. The army of Kirby will be resurrected because they have the best equipped marketeers for home products.

It is very exciting indeed for the cable industry what the digital era brings. They have just to repackage themselves with a lot of homegrown imagination.

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