8/14/2015 5:07:05 PM
Things we learned this week
The major networks must have read Dixon’s Carphone’s submission to the CMA this week with interest. The retailer’s submission repeatedly stressed the importance of independent advice in facilitating competition. It also warned that this may not always be the case if a merged BT/EE decided to pursue a direct strategy. The memory of the Phones 4u collapse is still relatively fresh, as are the accusations flung at the networks in connection to the retailer’s demise. Although Dixons Carphone has long term agreements in place with 3 of the 4 major networks the market consolidation resurrects the possibility of a change in strategy. It will be particularly interesting to see what happens with O2 should Hutch take over, there is of course a history of the multinational using a direct approach in the UK market.
Restructure for success
What was most interesting about Google’s decision to change its corporate structure, was what it revealed about the business segments the internet giant thinks will grow. Its connected home company and Fiber business were two which were spun off into subsidiaries. Other businesses that were de-merged such as the biotech business or Google X have a very different focuses, so it demonstrates the potential Google sees in areas such as Fiber and the connected home.
There is a limit
We’re told consistently that the appetite for data is almost never-ending, giffgaff however said that it had seen a reduction in the number of customers taking the plans. The industry in general has backed away from the totally unlimited package in recent years. It may be that the need to extract more ARPU from users has become even more pressing. If giffgaff are to be believed it also appears that the consumer’s desire for the unlimited package is not what it was.