Our Wireless World vol 3

In this edition of Our Wireless World, I want to explore the MNOs from a definitional point of view so that we can then discuss how to create strategic differentiators. And when I say ‘definitional’ I don’t mean ‘definition’, I mean ‘defining’. ?If we start with the literal definition of MNO, we quickly begin to understand the problem that definition creates in getting to how we actually ‘define’ an MNO in terms of who and what they really are, how to create sustainable strategic and market differentiation, and moreover how to exploit those differentiators when operationalizing their strategy and delivering on corporate, financial, social and environmental objectives. In this column I have no intention of describing respective MNO strategies in any level of detail or declare winners and losers. Instead, I want to challenge all of us to think about, and possibly re-think about what is most important in Our Wireless World and the role we play in the global macro economy and also the lives of the key constituencies we serve.

Now back to that ‘definition’. M.N.O. - ?Mobile Network Operator. Can there be a worse ‘definition’ to what should actually define an MNO? “We build a Mobile Network and then we maintain and Operate said network”. (?) Yuck! Wait, maybe there is a better (worse) example. How about Carrier? What about that one? Really? “We build a network and then Carry traffic on said network”. Double Yuck. When I moved to London in late 2005 to join T-Mobile, UK as their CEO I was moving from T-Mobile USA and a market in America where we referred to ourselves and what we did as a ‘Mobile Carrier’ to a European market where we all referred to ourselves as ‘Network Operators’. In the USA, with a population of 300M there were the BIG 4 National ‘Carriers’ at the time, along with another dozen or more rural, regional and affiliate ‘Carriers’. Wireless subscriber penetration was not even at the 80% level yet and the race for market share was fast and furious. It was a land grab, per se, and the need to fully understand the importance of strategic differentiators would come a few years later as the market became more saturated. In the UK, a country with less than 61M people, there were 5 national independent ‘Network Operators’ and countless other affiliates and MVNOs reselling those Network Operators’ networks. Wireless subscriber penetration in the UK was already nearing 125%. 125%! So more than one mobile device or connected SIM card for every senior citizen, adult, teenager and infant in the country. And remember, this was before wearables or connected tablets. This was even before the introduction of the first smart phone in the UK. And all 5 of the Network Operators were behaving consistent with their self-imposed identity as companies that ‘operated networks’, with no real strategic differentiation. If T-Mobile UK was going to go from worst to first in terms of subscriber growth, satisfaction, and then ultimately achieve our revenue, EBITDA and value creation objectives, in this fully saturated market, then something needed to change and change fast. That was a defining moment. And it started with a ‘definition’. A definition of not only who we were, but what we did and most importantly how we were going to do it. We weren’t, and more importantly couldn’t ever behave like a ‘Network Operator’ Sure, we would continue to invest billions of pounds building, improving and Operating our Network, but that was not who we were or what we really did. ?We were a ‘service company’. Plain and simple. We needed a great product, sure, and in 2006 our product was the mobile network our customers used to connect with the people and things that mattered to them most – whenever and wherever they needed to. Said another way, when our customers pushed the green button, the mobile phone needed to work. But that was just plain old table stakes, and no different than the product any of the other 4 national ‘Network Operators’ needed to deliver to those same customers for which we were all competing. The only way to win was to go well beyond the green button connecting that call. We needed to become a service company through and through. We need to understand that how a customer felt about the service provided would be the most important factor in determining whether they would afford us the privilege of continuing to provide them that service and if they would recommend our service to their friends, family and coworkers.

I suggest that MNOs are much more ‘service provider’ than ‘network operator’. Understanding what our customers value most while they are using our service, and when they need any kind of support to access and enjoy our service should drive Every. Single. Decision. How we do what we do is far more important than what we do. In the UK, T-Mobile had 13,000 employees serving tens of millions of customers. We had Network Engineers, IT Professionals, Finance, HR, Administrators, Sales, Marketing Customer Care, along with every other possible functional department and job description you could imagine. But in the end, we became a company with two groups of employees. Only two. The first group consisted of those employees who interacted with and directly served our customers. The second group were those employees who supported the employees in the first group. ?Period. That’s how we put the customer at the center of Every. Single. Decision.

You see, a brand is built from the inside out, not the other way around. It starts with a company culture that understands that essential difference and knows the emotional connection customers create with your products and services is based on how they feel – not only while they are ‘connected’ to your network, but with every interaction they have with your brand and service, and the people that deliver it. Not what you tell them, or what they read, or what they see, but how the feel. Organizing your organization around that undeniable truth is how to to define yourselves and a passionate service provider and create a truly differentiated identity in the market. It’s a never-ending learning process that is intensely focused on the customers you serve, and then creating that positive emotional connection through serving their specific needs. In Our Wireless World, we focus on a lot of numbers – but I say our customers should not be counted. They should be served.

Thanks for indulging me yet again. Until next time!