Summary
Any service, any device, anywhere. Service providers like Deutsche Telecom are realizing that in order to compete against low priced VoIP services and a multitude of media providers, they must deliver a fully converged service environment.
Analysis
Deutsche Telecom is merging its fixed and mobile divisions.
Why? The answer is simple if you answer a couple of other questions.
What's the difference between using a smart phone on the road or at home or the office? Nothing.
What's the difference between using a Netbook on the road or at home or the office? Nothing.
What's makes services consumer 'sticky'? Lifestyle impact.
How do you get lifestyle impact? You blend all services together and you maximize the 'transformative value' of those services so that they provide the greatest value in the broadest ways.
Keeping the Deutsche Telecom fixed and mobile divisions separate is a great way to commodotize them both and suffer from continuous customer churn. Merge them and you increase the possibilities for lifestyle impact and increasing the transformative value of those services.
So, the answer to why Deutsche Telecom is merging the divisions? Growth, revenues and survival.
David Croslin consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
