August 2006

Today's Telecom is a Chicken Fried Steak

by alec on August 31, 2006

“Ever had a chicken-fried steak?”, I asked the boys.

“No, what’s that?”

I described chicken-fried steak, in all its glory — crispy batter wrapped around a steak, smothered in white sausage gravy. They were sold.  Worse than the steak, even, was that they both ordered onion rings (battered and fried), and country fried potatoes (battered and fried again).  So, there we sat, enroute to Waterloo, at Denny’s, confronted by impossibly large piles of golden brown food smothered in gravy. It’s a heart attack on a platter, which is the reason I only eat it when the boys’ mother isn’t along.

Chicken friend steak is one of those meals that has great profit margins.  Take a relatively poor cut of meat (or a chopped steak, in the case of Denny’s), add seasoning and batter, fry it, serve piping hot, and smother in gravy.  It can’t cost more than $1 for the ingredients, and it commands $9 on the menu. 

Today’s telecom is a chicken fried steak.  It’s familiar, high margin, soul food. 

You know, I grew up eating breaded meat.  Breaded chicken, fried.  Breaded pork chops, fried.  Chicken fried steak was a later bad habit I acquired, but it’s of the same genre.  The problem is that, just as consumers tastes have shifted away from this classic of Americana, so have telecom tastes started to fragment.  I’d like some vegetable with my steak, instead of those fried onion rings! Heaven forbid, I’ve even eaten, and liked, tofu!

When AOL decided to close down TotalTalk, they were recognizing that there isn’t any money in being another chicken-fried steak restaurant.  That’s fabulous.  Trends are created when ideas pushed by little restaurants are adopted by the mainstream.  AOL’s decision to focus on AIM Phoneline, and dump the TotalTalk business is a great validation of the concepts many of us, including myself, have been pushing for some time using names like Purple Minutes, and Voice 2.0.

I agree with Andy’s view that we should all see this as a positive sign of growth for AOL and our industry.  In fact, I’ll go even further than Andy.  The use model for VoIP in the future is, in fact, the VoIM model.  Your buddy list will be on your phone, along with presence, voice and IM, and you’ll interact with them via a network/handset based platform that can support all kinds of new applications.  By focusing on AIM Phonline on the PC today, AOL is setting the stage for staking out their turf on the future of the handset. 

Isn’t that a welcome change from chicken fried steak?

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Leaks: Two Maxims to Follow

by alec on August 31, 2006

I’ve been following a small dialog between Jon Arnold and Garrett Smith on blogger ethics, arising from a Globe story about how an individual going by the pseudonym Boy Genius has been gleefully revealing secrets about RIM’s upcoming Blackberry Pearl on enGadget.

I guarantee that RIM isn’t happy.  A couple of months ago I had the opportunity to see one of the Pearl prototypes, up close, hold it in my hand, play with it and so on, and security was tight.  Rumour had it that RIM employees had been instructed not to use the devices outside buildings in case an enterprising photographer from the Kitchener-Waterloo Record happened to be stationed nearby with a long lens.

And, equally, I am sure that Boy Genius, whoever he is, is in violation of an NDA.  NDAs, however, aren’t worth much and most people signing them know that.  Maxim 1: an NDA is only as good as the relationship you have with the signer.  If you trust the person with your confidential information, then an NDA will hold.  If you don’t… well, sit down with a lawyer and try to figure out what the damage you suffered due to to violation was, and then figure out whether you want to go to the expense of prosecuting.

Is this really an issue of ethics? Some blogs, including enGadget, have an investigative journalism focus.  A while back, for instance, Andy Abramson obtained a copy of a lawsuit filed against Skype.  He broke the news.  Should he have done that? Sure. That’s why people read him.  Now, Andy’s case was a little different because the information was public, having been filed at a courthouse, but nobody had broken the story yet.   To me, enGadget is doing what readers of enGadget expect — finding the news about the latest hot gadgets, and reporting it.

Having lived through many leaks during my time at Microsoft, my opinion is that they’re rarely harmful, most certainly never fatal.  If that leak is widely reported, it shows real interest in your product.  Many times a leak can actually increase interest in the product, creating pent-up demand prior to launch. Both are good things. 

Leaks are a pain, especially to those orderly marketing types who now to have to revise their plans. By now, they’ve had three weeks of running around with their hair on fire trying to figure out how to shut this guy up. I say, suck it up guys — that’s what management pays you for! Your challenge now is to find ways to convert those “Boy Genius” leaks into value. That’s what I would do. 

The lesson for all marketers is simple. Maxim 2: Leaks happen.  Plan accordingly.

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Asterisk at Fall VON

August 31, 2006

I just got this note from Carl Ford at Pulver.  It looks like VON Fall is going to have a pretty heavy Asterisk presence, including a repeat of the Asterisk user group meeting we held in Toronto at VON Canada.  ——————————————————– The most ASTERISK activities at Fall VON ever.    This VON is going to show [...]

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Mark Your Calendars for Voice 2.0: A Conference on the Future of Communications

August 30, 2006

On October 16th, Ottawa will play host to Voice 2.0, a conference which bills itself as a “day long voyage of discovery” into the evolution of the communications industry.  Genetically, this event will be a hybrid between a BarCamp style unconference and a more traditional panels and keynotes format.  The conference will consist of keynotes, [...]

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Smith on VoIP

August 29, 2006

I didn’t know Garrett Smith, author of Smith on VoIP, until a couple of hours ago.  His very successful gambit to get my notice (appealing to my ego by naming me to his list of top 30 VoIP bloggers) has landed him in my blogroll now.  Although, I feel certain that he has the order [...]

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Communigate and Versature Announce

August 29, 2006

Closer to home, yesterday iotum partner Versature announced their relationship with Communigate.   The highly stable and scalable nature of the Communigate platform was a key factor in their decision, according to folks at Communigate.  Frankly, I think that underplays what Communigate has.  Having seen the Communigate platform in action many times over at the Versature [...]

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Nokia 6682: The Best Nokia Phone You Can Get in Canada

August 29, 2006

For the last few days, courtesy of Toronto-based word of mouth marketers Matchstick, I’ve been one of 45 bloggers in Ottawa playing with a Nokia 6682 cell phone, with Rogers service.  This phone is the baby brother of the Nokia N70, which I’ve written about before, but which has never been available in Canada. In fact, none of the N series [...]

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Sessum: the Marketers Poet

August 29, 2006

Jeneane Sessum is taking shots at the latest marketing buzzword — “attention”.  Whether you agree or disagree with her viewpoint, please go and read what she has to say. She takes the mundane, and makes it poetry.  Revel in the words.  Jeneane is one of those rare talents who can turn a phrase.  For instance, arguing [...]

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Signs of Success?

August 29, 2006

This morning I found this piece of email in my inbox. Alec Saunders .LOG is sooo popular that I’ve broken one of the stats packages provided by my hoster. See below. Thank you to all of you who think that what I write is valuable or entertaining enough to keep coming back. And thank you especially to Bluehost [...]

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Google / EBay: Where's the Money in Click-to-Call?

August 28, 2006

Google and EBay have just announced a Click to Call advertising partnership, and Andy Abramson thinks that Google got the better it.  I think he’s probably right. I’ve built a quick model based on my own experience with Google Adsense, and some assumptions about terminations. Let’s assume: Click through rate: 2.3%.  That’s my actual today. Average [...]

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