Don’t listen to the moaners, phones are great – Three

Three has launched a new marketing campaign designed to counter all the moaning about how bad phones are for you.

In a new campaign, simply named ‘Phones are Good’, the telco imagines how historical moments would have been different if smartphones had been around. From Henry VIII on Tinder, to the Titanic with GPS, it’s a bit of fun which indirectly encourages people to use the internet more, playing directly into Three’s USP.

“At a time when we are being told to get off our phones, Three’s customers are actually using them three and a half times more than other providers,” said Shadi Halliwell, Chief Marketing Officer at Three. “That’s because, unlike others, we understand how real people use their phones.

“And although we shouldn’t be on our phones 24/7, if it weren’t for our mobiles how would you find love lounging on the sofa? Buy new shoes while sitting on the toilet? Or get a chicken cooked, seasoned, garnished and delivered to your door at the drop of a hat? As the Best Network for Data, it is our duty to challenge the cynics, and help everyone see that Phones Are Good.”

As you can see from the video below, it’s a creative way to get Three’s message across, and quite entertaining.

While Three is suggesting all these wonderful ideas on how mobile phones could have changed the course of history, there is of course the other side of the coin…

  • If the Mesopotamians had used MyBuilder.com for its reviews of local tradesmen, their grain storage units would have never leaked and beer would not be a thing
  • The Spanish Armada of 1588 could have been successful in its mission to conquer England if Sir Francis Drake was taking numerous selfies for the perfect Instagram post instead of gazing onto the horizon
  • Had a clumsy Chinese chef been following a YouTube recipe he might not have dropped a natural coagulant called nigari into a pot of soybean milk and created Tofu
  • Juliet might never have fallen for Romeo had she done a bit of Facebook stalking beforehand (admittedly this didn’t really happen)
  • If Percy Spencer had been using a calorie counting app, he would have never had that chocolate bar in his pocket and invented the microwave
  • Finally, without the power of Twitter the US might have a logical and caring human being in charge…

Of course, the revolutionary impact of mobile devices, not just the smartphone, is countered with negatives. Instead of talking to that lonely women on the bus, we stare at cats playing the piano and or toddlers biting siblings fingers. But, we more connected to family members on the other side of the planet. There’s always rough with the smooth.

Ultimately Three is attempting to push the advantages of the internet and encourage more people to consume more data. As the telco which sells itself to the more digital-enthusiastic users, using the internet more benefits it. It sells itself on data volume more than anything else.

The idea of the smartphone contradicts all the lessons of politeness and paying attention which we were taught as children. Perhaps the next thing we should be worried about is virtual reality. Parents have been telling children all around the world sitting too close to a TV screen is bad for your eyes, yet VR places a screen inches in front of your face.

Consumer focused telcos are treading on thin ice – China Telecom

We are paraphrasing with the headline, but the message from Lui Aili, President of China Telecom was very simple; evolve from a consumer focused business or struggle.

To demonstrate this message, Aili used a bowl of soup as an example. At the beginning the bowl of soup is full, but every time it is nudged a little spills out. Keeping the bowl steady is impossible, therefore the volume of soup will always be decreasing. The volume of soup is the total revenues in the telco industry, while the nudging of the bowl is the constant battle for consumer subscriptions.

In China, mobile subscriptions already exceed 100% of the population. It is an incredibly saturated market, with little room to grow. There might be more consumers entering into the dual-SIM lifestyle, but this is already a trend which has been developing for some time. Relating this back to the analogy, the bowl is unlikely to get any bigger any time soon, therefore the volume of soup is also unlikely to increase.

This is the challenge with the consumer facing business. Every time a telco steals a customer (nudges the bowl), the monthly subscription of that user also decreases. When this happens numerous times, the total amount of revenue in the industry gradually decreases (soup spills out of the bowl). Undercutting current providers is the primary way in which telcos gain new subscriptions, and it does not look like there is grounds to justify an increase in ARPU right now. This might change with the introduction of 5G subscriptions, but that remains to be seen.

This is one challenge for the industry, the total revenues are getting smaller, but parallel to this, the demands of the consumer are also increasing. Aili points to global trends of increased data consumption as a worrying sign. Delivering on these expectations, limitless data tariffs are starting to become the norm nowadays, is an expensive business. With this in mind, focusing on the consumer connectivity business is a slow erosion of revenues.

The ambition of China Telecom is a simply one; as it stands it owns the pipeline of connectivity, but the future is all about owning the platform and content as well. In the household, this looks like delivering connectivity, but also the smart home platform which manages applications and products, but also content in the entertainment world. While it might seem like a simple point to make, there still are telcos out there striving to dominate consumer connectivity alone; with the soup bowl gradually emptying, and increasingly becoming more expensive to maintain, should this be deemed a sensible business model?

China Telecom doesn’t want to be a telco anymore, the ambition here is to be an intelligent services company, sounding very similar to cousins in the OTT world.