CeBIT interview with Comverse:
Monday , Mar 13, 2000 Sun-Thu at 18:00 (GMT+2)
High Tech Features
We Built a Suite
By Efi Landau
In an interview with "Globes" at the CeBIT exhibition, Michael Zevadi presented Comverse's newest developments. The vice president for strategic marketing and business development adds that they form part of the "Comverse suite".
"Globes": Where does Comverse position itself?
Zevadi: "We're trying to assess the biggest risks communications carriers currently face. Their greatest fear is of becoming a pipeline. On the one hand, there are the terminals - mostly mobile phones - that are smarter and stronger. On the other, there's the Internet and all those who provide services other than on the network. Carriers are afraid they will be passed over, they're afraid of being abandoned.
"At the moment, abandonment is about 30%. Every European country, however, already has a target date for introducing the portable numbers method, in which each customer will be entitled to work with different carriers using his telephone number. It took place in Britain and in the Netherlands in 1999, and a number of other countries will introduce the method this year and in 2001.
"Abandonment will be felt mostly in the cellular market where it's technically easier to change from one operator to another. To illustrate what can be expected, here is an interesting fact: in Italy, where portable numbers do not yet exist, 5 million mobile operators hold more than one SIM card, and some hold three. In GSM technology, the handset is merely the "wires": the SIM card can be transferred from one handset to another, making it into a personal instrument. It is also possible to change one SIM card for another in the same handset to change operators, and this is what is happening in Italy.
"Of course, for this to work, all operators must use GSM technology, and a customer needs to subscribe to two or more operators. This is not the case in Israel, for example, but it appears to be worthwhile. Just as an international call consumer can choose the services of competing companies, based on the destination country and the different companies' offers, the same can be done in mobile phone calls if you have a SIM card.
"The problem today is that each SIM card has a different number. When Italy Italy introduces portable numbers, the problem will be solved. The customer's telephone number will be identical for each SIM card, and evidently for his land-line telephone too."
What do you expect will happen?
"The operators need to replace selling air time with close customer relations. From their viewpoint, this means changing into a marketing company, aimed at signing up the customer in a long-term contract. Partner is currently offering anyone spending more than a certain, not very high, amount a free handset at the SuperSol outlets, on condition that he joins one of their offers that require long-term commitments, usually three years.
"The model everyone wants to adopt is the AOL model, known as the 'world garden'. Whoever is in the garden doesn't want to leave, while those outside want to enter. According to AOL data, 80% of its 30 million subscribers never leave AOL when they surf the Internet. All the sites they visit are stored in AOL. Even those who venture out from time to time spend most of their time in AOL.
"Communications operators want to reach a long-term relationship with customers. In such a situation the telephony model of paying for the service you use is a very convenient model. On the other hand, the personal touch, according warmth to the customer, is possible on the Internet."
Is this where Comverse enters the picture?
"Comverse is trying to help operators in their future marketing battle, while at the same time offer them a work environment similar to the one Microsoft provided for the PC. This means 'obliging' the customer to work in your work environment due to the applications you provide him with, and it ties him to you."
"We regard ourselves as a wireless network software company. We want to build an entire suite of applications, which first of all talk with one another, and even more importantly, work in a homogenous environment.
"We regard WAP as one of the gateways for reaching the applications base. We want to be an environment with a common infrastructure, above which there's an applications suite."
Zevadi says extremely cautiously that this is like Windows software. Comverse wants to be the Windows of the wireless network.
"Today, we're the leading provider of wireless services. As such, our customers, wireless communications companies, offer us various partnerships.
Published by Israel's Business Arena on 9 March, 2000
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