Good SMR review by Alan Shark
amtausa.org
Earnings should also be out in two weeks; 11th or 14th.
Best Regards,
Jim
Defining & Redefining SMR
and the Specialized Wireless Industry
President's Page
Last month I stated nine trends that will change your business forever. I promised to explain how one could benefit from them. In case you didn’t see last month's column, here are the nine indicators:
1. Consolidation
2. Convergence
3. Technological Advances
4. Globalization
5. Standardization
6. Fierce Competition
7. Age of Alliances
8. Deregulation
9. Corporate Turnover
One of you was kind enough to call and add another trend to the list:
10. Cultural diversity
This last factor recognizes that we are increasingly dealing with a changing customer base that is reflecting many different cultural values - even in business wireless.
Since I like to organize my thoughts in lists, here is a list of six opportunities that I see for our industry:
1. Business Communications.
This customer base provides the highest rate of return for the system operators because business customer use service more intensely, and often the cost is born directly by the employer. SMR systems are already tied into business communities and are growing with these companies.
2. More Spectrum.
I see more spectrum opportunities for SMR operators in the following ways: new spectrum-enhancing technologies; new allocations using channels 746-806 MHz (UHF TV that the FCC will be auctioning); and refarming. All will allow SMR operators to grow.
3. New Applications.
While cellular and PCS providers become "all things to all people", SMR operators will be able to further differentiate themselves by offering customized voice and data solutions over their systems.
4. Operators who Manage to Operate.
There is a huge shortage of trained and experienced wireless professionals. Some SMR operators are realizing a new business direction by managing other people’s systems. Because SMR operators come with such technical experience, they are in a unique position to offer to manage private internal systems, or government internal systems, as a profitable business with appropriate safeguards.
5. Consolidation. As mentioned earlier this factor provides the potential for a win-win situation between a current system owner and an operator who is pursuing a strategy of consolidation. In the next few years there may be fewer SMR operators, but those who remain will be inherently stronger.
6. Enter Digital Technology. Digital technology will not only allow operators to get more out of their current spectrum holdings and add more features, but the price of production should also go down, thus allowing for feature-rich, but less expensive equipment.
Perhaps most important of all in our quest to remain relevant and profitable is our ability to re-define who we are and what we do. As I look to the future, I see many fantastic opportunities for SMR operators and manufacturers. Customer interest and demand appears to look very strong for years to come. Whether SMR providers and similar services are viewed as a niche market, or small business wireless carriers, there are many businesses that have special customizable needs. Large, one-size-fits-all carriers cannot profitably offer customized services like smaller SMR systems can.
Part of the future success of SMR operators will depend in large part how they view themselves. This reminds me of reading the historic accounts of shipping companies trying to compete with the new trans-Atlantic planes. Many viewed themselves as being in the shipping business only; after all, they had been using ships for hundreds of years. A few were smart enough to view themselves as being in the transportation business where the key was to get packages and crates from one point to another, regardless of transportation mode. While most traditional ‘shipping’ companies went out of business, a few transformed themselves to embrace new economic realities.
Today it can be said that SMR operators are in the transportation business: they transport voice and data regardless of frequency or technology. By expanding the definition of who we are, what we do, and how we do it, will contribute largely to the future success of our fast-changing environment and the industries we represent. I am happy to say that AMTA is in front of – not behind - the charge to move us forward!
To learn more first-hand, please register now for AMTA’s Leadership Conference, to be held in historic Old Town, Alexandria Virginia, June 28 & 29, at the Sheraton Suites. You can check out our action-packed agenda on our web site and you can also register on-line! See you in Old Town for some new ideas and opportunities! |
