John Linton ......in the event there is such a thing? It's pretty obvious, at least to me, that in the communications industry it's the harshness of current conditions in the residential communications market continuing to increase and the 'sound' of desperation is the ever more bizarre and amazingly changing offers being made at both the retail and wholesale levels.Major suppliers who say "absolutely out of the question" one day are coming back a few days later saying "let's do that". What changed?
I was told that TPG approached us yesterday to try and establish a price at which we would buy residential ADSL2 services from them (having approached us a couple of weeks ago with the same pitch on business services). Perhaps this is simply a new marketing ploy to fill up their unused ADSL ports caused by falling direct sales and Telstra's depredations which could be a logical extension of any network owner's ongoing marketing opportunities but it seems a very unlikely 'strategy'. TPG's approach to the retail markets appears to be based on taking as much market share as it can get based on a more for less approach to end user pricing which, by definition, can only be successful if it gains customers at the expense of its competitors. Why would it expect its competitors to help TPG put them out of business? (that's ignoring the reputation TPG has for a congested network that generates so many end user complaints). It sounds more like a company that is not meeting its publicly promised growth targets and is looking for a 'quick fix'. The thought of on-selling the TPG network is simply quite bizarre to someone like me....but perhaps its a sign of a truly changed future?
On the same day we had a re-approach from a long term supplier who we had 'taken some business away from' who had then threatened us in a most unseemly manner. Apparently forgetting their immediately previous belligerence they wrote to me asking Exetel to tell them at what price it would take to continue doing business with them. On balance this was even stranger than the TPG approach. We have been dealing with this particular supplier for well over 5 years and we have always kept them advised of the future pricing we expected as the market changed. It was no different in the recent contract end discussions but they chose not to meet the market prices now existing so we advised them we would have to change providers. Their reaction was unprecedented in my experience and resulted in a very 'bad taste in our corporate mouth'. To then come back and say, effectively, "OK the blackmail didn't work so how about you tell us at what price you'll keep the business with us" was......I'm not sure I can find the words to adequately describe our reactions.
Again, on the same day, we had yet another potential provider this time, whose previous offer we had considered but then decided against proceeding with come back to us with such a vastly improved offer that it made nonsense of the original proposal and seemed to contradict everything that had been previously said.
We know, equally as well as most I would have thought, how difficult 2010 has been and although Ms Faustus backed down enough yesterday to get the Senate to pass the Telstra Separation bill (a small mercy in these confused times that is only a small step along the way towards a more sane set of marketplaces):
http://www.itwire.com/it-policy-news/regulation/43457-nbn-co-business-case-summary-leaves-many-questions-unanswered
the first six months of 2011 are still going to be far from enjoyable....and that's probably the most optimistic view that can be taken. These three incidents (in one day) together with the general feelings generated from so many casual conversations, media reports and email exchanges each day keep emphasising that however difficult things were 'yesterday' nobody seems to be expecting them to be anything but more difficult 'tomorrow'. Sometimes it makes you wonder why you get out of bed each morning.
So, nil desperandum, tough times allow the talented to shine and the less talented to move on to something easier they can cope with. The problem is trying to work out which category you fit into before circumstances make it abundantly clear to you. Meanwhile it is somewhat comforting to know that other people are as, or more, perplexed by current conditions than you are.
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