Tuesday, July 08, 2008

Telecom Companies Need To Buy A Clue

I was just reading on law.com that telecoms are suing municipalities for rolling out free wifi to their constituents. These same telecoms often cannot be bothered to roll out any internet whatsoever to these municipalities. This is what happens when you base your business plans on artificial scarcity. You end up having to sue your own customers (i.e. the music and movie industries). Once your services are ubiquitous commodities you have to either find another business or employ economies of scale to make more money. Suing your customers is not a viable alternative ... ever. If you do so, do not be surprised when your customers walk all over you on their way towards a better alternative.

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