My Photo

Ordering Information

Subscribe


Blog powered by TypePad

« Deliberate Dissatisfaction: Vodafone BSkyB 3G TV | Main | An antidote to all that's wrong with modern marketing »

November 06, 2005

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00e0097e337c883300e008c8f9988834

Listed below are links to weblogs that reference Requiem for the phone booth:

» On the site today from News Weblog
Here on News blog we'll be looking at why polytunnels are... [Read More]

Comments


Ironically I only ever use phone boxes as a booth from which to make mobile calls (with less sound disturbance). Contrary to what BT has been doing with them, I'd tend to turn them into MP3 download centres or vending machines of some other form.

NjaR

Hi Tomi,

I disagree concering what I read from Germany. T-COM will build another 10.000 public phones (actual 110.000) within 2006/2007 because of the EURO. I guess they will use/upgrade them as WLAN hotspots later, because they will offer a dual phone (WLAN/GSM) in mid 2006 which can be used at public hotspots as well (at fixed line costs but with your personal/clean/own handset). Currently they have over 5.000 hotspots in hotels/restaurants in germany

TOM

Hi Tom

I don't doubt the German incumbent Deutsche Telecom still thinking this way - Germany is behind the average of European mobile phone adaption, about a year behind - while Finland is two years ahead of that European average. A few years ago many fixed line operators around the world were still imagining big growth opportunities out of phone booths. So the German announcements are still in line with the biggest incumbent fixed wireline operator in Europe, and one that operates in a market that is quite behind the European average for mobile telephony.

I am totally convinced that the Finnish examples around mobile telecoms radical innovations to not only the telecoms industry but the economy on the whole, will be all copied around the world. That is what happened with SMS (now a 60 billion dollar industry worldwide); that is what happened with ringing tones (already a 5 billion dollar industry); that is what is happening with SMS-to-TV interactivity such as SMS-to-TV chat, games, voting etc; that is what happened with the use of mobile phones to pay for vending machines; to pay for public transportation; to do airline check-in etc. All of these were first done in Finland and all are now spreading all around the world.

Finland was also the first advanced country in the world to have more mobile phone subscribers than fixed landline subscribers (this milestone was reached in Finland in 1998, while the world average hit that point in 2003). Finland then became the first country where more revenues were earned by mobile networks than fixed, and now in 2005 Finland again became the first country where total originating voice minutes on the mobile networks exceed that in fixed networks. And as all Finns have mobile phones today, Finland is also the leading Western country where fixed line penetrations are falling, with over 40% of all households already having abandoned the fixed landline connection altogether.

All major operators, and all major analysts, agree that these trends are now happening in all other advanced countries.

Now, Germany is behind the European average. They can still be "forgiven" for not spotting the trends, and still try to make money out of the payphone network. Why not. But I am 100% convinced that Germany too will announce it will discontinue supporting phone booths. When will that happen? Probably the announcement will come in the next four-five years and obviously the payphones themselves will then be phased out over time. It might take ten years. But trust me, it will come. All of the trends go against the payphone business model (in advanced countries at least)

But time will tell. Maybe this will be the one trend in mobile telecoms where Finland led but nobody followed, ha-ha..

Tomi Ahonen :-)

The comments to this entry are closed.

Available for Consulting

  • Alan Moore
    is a bestselling author and the CEO of SMLXL the Engagement Marketing specialist firm in Cambridge. Its website is www.smlxtralarge.com Book a speaking engagement Call Sandra Nolan or Karen O'Donnell at the Leigh Bureau + 353.1.230.2322 Book an Engagement Marketing Workshop contact alanm (AT) smlxtralarge.com
  • Tomi T Ahonen
    is a five-time bestselling author and consultant on digital convergence and mobile telecoms, based in Hong Kong. Tomi lectures at Oxford University's short courses on high tech and convergence. His company website is www.tomiahonen.com. Book a speaking engagement or workshop around 7th Mass Media or any topics on this blog or relating to his books by writing to tomi (at) tomiahonen (dot) com

Google Search

  • Google

    Communities dominate brands
    The WWW

Tomi's eBooks on Mobile Pearls

  • Pearls Vol 1: Mobile Advertising
    Tomi's first eBook is 171 pages with 50 case studies of real cases of mobile advertising and marketing in 19 countries on four continents. See this link for the only place where you can order the eBook for download

Tomi Ahonen Almanac 2009

  • Tomi Ahonen Almanac 2009
    A comprehensive statistical review of the total mobile industry, in 171 pages, has 70 tables and charts, and fits on your smartphone to carry in your pocket every day.