“There Is No Try to Block Competition to Protect an Old Business Model”. Interview to Johan Andsjö, CEO of Telstra. Part II

Continue with the second part of the interview to Johan Andsjö, CEO of Telstra, focusing more on the aspects of the future of the sector: how were your business the telcos, that products and services will see the next few years, the app stores like new great business in the industry and the devices that are coming in 2010. We leave you with the words of Johan Andsjö, that you do not have waste.

Engadget Mobile. In addition to those already mentioned, other claims of the telcos is to leave the concept of rate flat, collect more who consume more. How do you see this from Telstra?

Johan Andsjö . Rate flat in mobile broadband is necessary because it is what people understand, is the simplest. That said, we will surely have models of limitation of speed or by consumption, and even with flat rates for voice. With the arrival of LTE go more to a model in which the operator charges for connection and there will be rate flat data and then services above, which will be the operator or other, e.g. voice over IP operator or Skype

If I can be better that Google is my problem, if I am not able to offer service that provides more value, it is natural for customer to choose them.

Engadget Mobile. Precisely, the voice over ip is a controversial, very gelding by all operators, including Telstra.

Johan Andsjö. In the long run you will not be locked. Right now it is rather immature, I’m going to give an argument that seems an excuse but that is real: the operators are obliged to provide access to the police for listening when you order it a judge, while those of Skype are not required. If the market matures and is adapted to the national rules, there will be no problem in the future.

Engadget Mobile. Then we have the issue of WiFi networks of Councils, for what the WCL has given clear rules recently… seems to make less valuable data terminal tariff.

Johan Andsjö. It is a normal development, it is very natural that there is political interest. There was an experience in Sweden, in 2000 the State gave money to give broadband over fibre. They put it, but then they were not able to operate networks with quality, three years later returned to the telecommunications operators because it was a problem for them, not planned how sustainable

If a town hall put wifi I think well, no problem. If you give value to the end customer my problem will be if not I’m giving good enough or brave enough to make me choose me and not the other.

Engadget Mobile. On another level, how you see services like Google Voice or fonYou who wish to establish as an intermediary between the user and the operators?

Johan Andsjö. If I can be better that Google is my problem, if I am not able to offer service that provides more value, it is natural for customer to choose them. I think that Telstra and other operators are offering a service better than Google Voice now… but if this change it is our fault, we must not try to block competition to protect old business model, that is always a very bad idea.

As operators we have ten years failing to make a business of applications and I do not know why we think that we we will now do well because Google and Apple have Yes done. At Telstra we are very quiet with them do so because we are never going to do as well as they.

Engadget Mobile. Also to attend a discussion on the pile of business, with the irruption of the app stores for mobile following the success of Apple’s AppStore are not too many, making a very costly development for mobile by the fragmentation of the market? In addition there will be Telstra shop, every time that MoviStar and Vodafone have if entered in this business?

Johan Andsjö. We are pleased that others mount the stores instead of Telstra. As operators we have ten years failing to make a business of applications and I do not know why we think that we we will now do well because Google and Apple have Yes done. At Telstra we are very quiet with them do so because we are never going to do as well as they.

Most likely having success here are that linked store with an operating system: Apple, Google and Nokia, these last ones if they are able to do something good with the new version of Symbian, because now they are fatal. I think those three are that are going to be 85% of the market. For an operator 30% of applications will be little money compared with global revenues and so difficult that they focus to do something important in this field.

We will have a mobile phone, a tablet or a laptop (or both), a card in the car, another in the console, one in the video surveillance camera… a situation with many devices connected to the network, machines connected to machines is something that is going to grow a lot.

Engadget Mobile. In agreements operators / manufacturers always there has been some tension. It has sometimes seemed that the power has been in the operator, then we have had cases of considerable power in the manufacturer as in the example of iPhone. Android seems that you can explore new models of revenue-share, where the operator can have extra income because Google share which generate their advertising consumption. Will they push the operators more these systems to other models as the future Windows that also will have a higher cost per license?

Johan Andsjö. None of these situations come by decision of the operator, they come by decisions of the end customer. People leave Windows because Android or iPhone are better, there are no more complicated than that. Almost da same operator what you think. What is true is that Android phones are cheaper because Google does not charge as much as Microsoft.

Turning to politics, we have 15 years in a market where everyone was watching operators to resolve any problems. Leaders to invest in his country in coverage and job creation; the creators of applications to solve your problem of distribution… many organizations posed that the operator has to resolve any social, political, problem… This is not a natural situation in the market.

Operators have to focus on things that do well and try to make them better, but can not take responsibility for the problems of other organizations. In Sweden we have spent many years in which conferences software companies complained that the operators “do not pay for their applications”. Of course! It is I don’t want it because the customer does not demand, and that is not my fault.

The situation is changing, the ICT sector is not so focused on the operator, and that makes me feel more peaceful. Any player can make its business model and its success does not depend on the operator, but as well to do so. It is as it should be in a mature market

Most likely that to succeed in the app stores that link them to an operating system: Apple, Google and Nokia, they last only if they are able to do something good with the new version of Symbian, because now they are fatal

Engadget Mobile. Refers to the end of the era of the PC, in which big business was the “stack” on the personal computer, and step into the age of mobile, in which big business is the battery on the mobility. How do you think it will evolve this? Because you are breaking the tablets, it also begins to awaken “the Internet of things”…

Johan Andsjö. I like the vision of Ericsson, who speaks that in 2020 will have 50000 million devices connected to the Internet, those are 10 devices people in the world. I see that we are going to evolve in this direction, we will have a mobile phone, a tablet or a laptop (or two), a card in the car, another in the console, another in the video surveillance camera… a situation with many devices connected to the network, machines connected to machines is something that is going to grow a lot.

As operators have to adapt to this situation, we cannot keep that “I give you a free phone to this user”… when those who are behind this card is a camera that monitors a House. I believe in this vision, many devices are connected, and there have to work to improve speed, capacity and simplicity in purchase. The operating model will change receivable for a connection and, depending on the device, value added up that connection services.

If you have connection in a car, also, I don’t know if the customer will want to pay to the manufacturers for things such as updating browser or call to factory for maintenance. I see more likely that charges the car manufacturer that the US charge.

Antonio Ortiz is co-founder of WeblogsSL, the company that makes Engadget Mobile and that is director of Estrategia Online. He regularly writes on his blog Error500 on internet and technology.