Archive for May, 2006

Converged Products: Week of 5/7/06

Friday, May 12th, 2006

The most convenient way that mobility is getting built into products is through the convergence of capabilities that previously existed as standalone products into the cellphone. That way, those products are now with you and available for your use whenever you need them wherever you go.

VZW: Recalculating the Value of Mobility

Tuesday, May 9th, 2006

Back in March, I commented on the reported price being negotiated by Verizon and Vodafone for the portion of Verizon Wireless owned by Vodafone.  I used those numbers to calculate the premium value for Verizon Wireless compared to the non-mobile part of Verizon.

This week, these negotations are back in the news, with Vodafone reportedly holding out for $50B for its 45% of Verizon Wireless.  That translates into a total value of $111B for all of Verizon Wireless, or $61B for the portion owned by Verizon.  The market cap for all of Verizon is about $96B, meaning that the value of the wireline portion of Verizon is only about $35B. 

Verizon had $42.8B in wireline revenue in 2005, and Verizon Wireless had $32.3B in wireless revenue in 2005.

In other words, each dollar of wireline revenue is worth 83 cents in market cap, while each dollar in wireless revenue is worth $3.44.  Or, summarized once more, each dollar of mobile revenue is worth more than four times each dollar of non-mobile revenue.

As I said in March, there’s bunches of factors that influence these valuations, but I prefer the simple explanation of it being a case of the Law of Mobility in action.  What do you think?

For e-mail subscribers

Monday, May 8th, 2006

If you mainly read the Law of Mobility weblog via e-mails sent through Feedblitz, it appears that the Feedblitz service missed several new posts last week.  You may be interested in some or all of the following:

Managing the Danger: Week of 4/30/06

Sunday, May 7th, 2006

In order to be winners in the new mobile era, businesses will not only need to capture the power of mobility, but also manage the danger. Highlighted below are recent examples of the danger of mobiliity and how some firms are beginning to manage it:

Enabling Technology: Week of 4/30/06

Sunday, May 7th, 2006

The Law of Mobility talks about value increasing with mobility. The impact of this law is being felt because the cost of adding mobility into products is falling, making it a no-brainer for mobility to be built into everything. Here are examples of technology advances enabling this to happen:

Capturing the Power: Week of 4/30/06

Saturday, May 6th, 2006

Mobility is a wonderful thing. As mobility gets built into all products and services, businesses need to learn how to both capture the power of mobility and manage the dangers introduced through mobility. Here are some examples of how the power of mobility is being applied to create competitive advantage:

Converged Products: Week of 4/30/06

Friday, May 5th, 2006

The most convenient way that mobility is getting built into products is through the convergence of capabilities that previously existed as standalone products into the cellphone. That way, those products are now with you and available for your use whenever you need them wherever you go.

Anyware not everywhere

Thursday, May 4th, 2006

I just spent some time with Clint Parr, president of Anyware Mobile Solutions.   Anyware describes themselves this way: “Anyware Mobile Solutions …has been defining, designing, delivering and supporting mobile solutions since 1997.” 

Anyware lists Sprint as a partner and Clint was in town for meetings with Sprint related to our partnership, but I have no role in that relationship and our discussion had nothing to do with it. 

No, the reason that Clint and I got together is because we go way back.  In fact, back in 1995 at the very beginning of the Internet era, Clint joined the Internet startup that two partners and I had formed.  We experienced the front end of that Internet Age wave and now, 11 years later, from two separate positions in the industry, we are experiencing the front end of the Mobility Age wave.

As it is when you get together with old friends, much of our discussion was about our kids’ sports teams and where old friends are now working.  But given what we both do, we also talked some about mobility, about the power and the danger.

Clint spends a lot more time with a lot more people who are really building mobility into their businesses than I would even want to, so his observations are pretty keen.  I won’t share all of Clint’s brilliance with you (if you want to tap into that, give the Anyware team a call), but I asked him if I could share one of his insights and he said “sure.”

Clint has watched and participated in lots of mobility implementations.  Some by big companies.  Some by small companies.  His observation was that what matters the most is who is driving the implementation.  If it’s being driven by a centralized support group, such as IT, then much of the time (maybe 25% or more), the project will fail because the central team is more focused on managing the dangers of mobility than on capturing the power of mobility.  If instead the project is driven by the organization that’s really going to use the mobile application, then almost always the project is a success.  These groups really know the realities of their environment, they know what can make a big impact in productivity which will guarantee an attractive ROI to continue the funding, and they know what the real users will accept and use.

Of course, you can’t ignore the dangers, but if you fail to really capture the power, then what’s the point.

Makes sense to me, how about you?  Any thoughts or feedback?