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Strategies for Mobile Wireless Internet

Strategies for Strategies for Mobile Wireless InternetMobile Wireless Internet

Presented by

KATHRYN RUDIE HARRIGANHenry R. Kravis Professor of Business Leadership

COLUMBIA UNIVERSITY

Presented byPresented by

KATHRYN RUDIE HARRIGANKATHRYN RUDIE HARRIGANHenry R. Kravis Professor of Business LeadershipHenry R. Kravis Professor of Business Leadership

COLUMBIA UNIVERSITYCOLUMBIA UNIVERSITY

Parallels with TelevisionParallels with TelevisionParallels with Television

qElectronic components firms assembled and sold television receivers

qProducer of broadcasting equipment founded network of television stations

qLittle demand for television receivers until there was programming to receive

q Software drove demand for hardware

qqElectronic components firms assembled Electronic components firms assembled and sold television receiversand sold television receivers

qqProducer of broadcasting equipment Producer of broadcasting equipment founded network of television stationsfounded network of television stations

qqLittle demand for television receivers Little demand for television receivers until there was programming to receiveuntil there was programming to receive

qq Software drove demand for hardwareSoftware drove demand for hardware

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Parallels with Adoption of VCRsParallels with Adoption of VCRsParallels with Adoption of VCRs

qTelevision receiver firms introduced video cassette recorders to extend TV demand

qLittle demand for VCRs until there was programming to receive

q Software drove demand for hardwareq Standards war resolved in one format per

continent, e.g., Sony Betamax vs. VHS

qqTelevision receiver firms introduced video Television receiver firms introduced video cassette recorders to extend TV demand cassette recorders to extend TV demand

qqLittle demand for VCRs until there was Little demand for VCRs until there was programming to receiveprogramming to receive

qq Software drove demand for hardwareSoftware drove demand for hardwareqq Standards war resolved in one format per Standards war resolved in one format per

continent, e.g., Sony continent, e.g., Sony BetamaxBetamax vs. VHSvs. VHS

Parallels with Cable-TV and Programming Packaging Industry

Parallels with CableParallels with Cable--TV and TV and Programming Packaging IndustryProgramming Packaging IndustryqCable service providers extended their

networks to gain increasing returns to scaleqLittle demand for cable subscriptions until

there was programming to receiveq Software drove demand for hardware

qqCable service providers extended their Cable service providers extended their networks to gain increasing returns to scalenetworks to gain increasing returns to scale

qqLittle demand for cable subscriptions until Little demand for cable subscriptions until there was programming to receivethere was programming to receive

qq Software drove demand for hardwareSoftware drove demand for hardware

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Parallels with Cable-TV and Programming Packaging Industry

Parallels with CableParallels with Cable--TV and TV and Programming Packaging IndustryProgramming Packaging Industry

qHBO bought “exclusive” rights to syndicate studios’ movies to foreclose competitors§ Studios gained power and cost of syndication

rights rose astronomically§ New studios emerged to fill shortfall

qProgramming packagers developed own exclusive programming (which they later syndicated to other distribution channels)

qqHBO bought “exclusive” rights to syndicate HBO bought “exclusive” rights to syndicate studios’ movies to foreclose competitorsstudios’ movies to foreclose competitors§§ Studios gained power and cost of syndication Studios gained power and cost of syndication

rights rose astronomicallyrights rose astronomically§§ New studios emerged to fill shortfall New studios emerged to fill shortfall

qqProgramming packagers developed own Programming packagers developed own exclusive programming (which they later exclusive programming (which they later syndicated to other distribution channels)syndicated to other distribution channels)

Justifications for PioneeringJustifications for PioneeringJustifications for Pioneering

q Is first-mover advantage large enough to justify investments and sustainable?

qWhich firms will subsidize pioneering § with which partners?§ for how long?§ with what expectation of gain?

qq Is firstIs first--mover advantage large enough to mover advantage large enough to justify investments and sustainable?justify investments and sustainable?

qqWhich firms will subsidize pioneering Which firms will subsidize pioneering §§ with which partners?with which partners?§§ for how long?for how long?§§ with what expectation of gain?with what expectation of gain?

“If you build the field, they will come …”“If you build the field, they will come …”

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Justifications for PioneeringJustifications for PioneeringJustifications for Pioneering

q Carriers

q Manufacturers of digital handsets

q Internet service providers (ISPs)

q Web hosting firms

q Network providers

qq CarriersCarriers

qq Manufacturers of Manufacturers of digital handsetsdigital handsets

qq Internet service Internet service providers (ISPs)providers (ISPs)

qq Web hosting firmsWeb hosting firms

qq Network providersNetwork providers

q Software providers

q Independent portals

q Content providers

q Banks and financial service firms

q Merchants selling through Internet

qq Software providersSoftware providers

qq Independent portalsIndependent portals

qq Content providersContent providers

qq Banks and financial Banks and financial service firmsservice firms

qq Merchants selling Merchants selling through Internetthrough Internet

Carrier Carrier ---- Network coverage,Network coverage,Available capacity, ISP & Access to Available capacity, ISP & Access to Internet, CSD Billing, SMS CenterInternet, CSD Billing, SMS Center

Many Pieces … Many SuppliersMany Pieces … Many SuppliersMany Pieces … Many Suppliers

Content Provider/ Portal Content Provider/ Portal Content server, Communications, Content server, Communications, WAP or SMS Gateway, Internet WAP or SMS Gateway, Internet

or Network Accessor Network Access

WAP or SMS WAP or SMS GatewayGateway

Devices & Devices & BrowsersBrowsers Network AccessNetwork Access

Users Users ---- MobileMobile Phone/PDA with Browser, Phone/PDA with Browser, DialDial--up Information, Site Information, Cashup Information, Site Information, Cash

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Competition vs. CooperationCompetition vs. CooperationCompetition vs. Cooperation

Each specialist supplier wants to supply as many value-adding goods and services as

possible (often in competition with partners)

Each specialist supplier wants to supply as Each specialist supplier wants to supply as many valuemany value--adding goods and services as adding goods and services as

possible (often in competition with partners)possible (often in competition with partners)

Specialist suppliers join each others’ consortia to pioneer standards and entice

early-adopter consumers to purchase products to create new lines of business

Specialist suppliers join each others’ Specialist suppliers join each others’ consortia to pioneer standards and entice consortia to pioneer standards and entice

earlyearly--adopter consumers to purchase adopter consumers to purchase products to create new lines of businessproducts to create new lines of business

Strategy evolves along diverse paths, creating conflictsStrategy evolves along diverse paths, creating conflictsStrategy evolves along diverse paths, creating conflicts

Software Applications Value ChainSoftware Applications Value ChainSoftware Applications Value Chain

Data NetworkData Network: : GSM, GPRS, EDGE UTMS, CDPD, BLUETOOTHGSM, GPRS, EDGE UTMS, CDPD, BLUETOOTH

Network/ Operator InfrastructureNetwork/ Operator Infrastructure: : Base Stations, Web Base Stations, Web Servers, PreServers, Pre --paid billing, IP Billing, WAP Gatewayspaid billing, IP Billing, WAP Gateways

SecuritySecurity: : Encryption, Digital Signatures, Encryption, Digital Signatures, KerberosKerberos

Horizontal ApplicationsHorizontal Applications: : EE--mail, Calendar, Synch, mail, Calendar, Synch, Contact Management, Location, Voice RecognitionContact Management, Location, Voice Recognition

Vertical ApplicationsVertical Applications: : Banking, Trading, HealthcareBanking, Trading, Healthcare

Operating SystemsOperating Systems:: PalmOSPalmOS, Microsoft CE, Linux, Microsoft CE, Linux

Handset & Terminal DevicesHandset & Terminal Devices: : Display, SIMDisplay, SIM

PortalPortal: : Content Development, Interface Design, Content Development, Interface Design, Personalization, User Access & ControlPersonalization, User Access & Control

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Move Up Value Chain By Increasing Solution Value (and Complexity)

Move Up Value Chain By Increasing Move Up Value Chain By Increasing Solution Value (and Complexity)Solution Value (and Complexity)

EE--mail and Messagingmail and Messaging

Personal Information Management (PIM)Personal Information Management (PIM)

Intranet Applications and HR ManagementIntranet Applications and HR Management

Travel ManagementTravel Management

Meeting CalendarMeeting Calendar

Bulletin BoardsBulletin Boards

Functional Functional EnablementEnablement

Custom ApplicationsCustom Applications

Will Technology Drive Adoption?

Will Technology Drive Will Technology Drive Adoption?Adoption?

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Time to CommercializeTime to Commercialize

Content/ Services, MContent/ Services, M--Commerce Cash FlowCommerce Cash Flow

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Differing Supplier AssumptionsDiffering Supplier AssumptionsDiffering Supplier Assumptions

qAll consumers have digital handsets --whether they want Internet access (or not)

qConsumers want video streaming and graphics on their telephony handsets --hence 3G technologies are necessary§ new spectrum, new network infrastructure§ new communications software protocols§ websites coded to accommodate multiple

technology standards

qqAll consumers have All consumers have digitaldigital handsets handsets ----whether they want Internet access (or not)whether they want Internet access (or not)

qqConsumers want video streaming and Consumers want video streaming and graphics on their telephony handsets graphics on their telephony handsets ----hence 3G technologies are necessaryhence 3G technologies are necessary§§ new spectrum, new network infrastructurenew spectrum, new network infrastructure§§ new communications software protocolsnew communications software protocols§§ websites coded to accommodate multiple websites coded to accommodate multiple

technology standardstechnology standards

Is Technology Deterring Adoptions?Is Technology Deterring Adoptions?Is Technology Deterring Adoptions?

q 3G issues take time to resolve (investments)q 3G only facilitates video and audio featuresqMobile wireless Internet has been happening

using 2.5G technology§ Consumers have been disappointed with WAP

» Handset availability

» Speed of transactions

§ Carriers unwilling to subsidize WAP handsets?

qq 3G issues take time to resolve (investments)3G issues take time to resolve (investments)qq 3G only facilitates video and audio features3G only facilitates video and audio featuresqqMobile wireless Internet has been happening Mobile wireless Internet has been happening

using 2.5G technologyusing 2.5G technology§§ Consumers have been disappointed with WAPConsumers have been disappointed with WAP

»» Handset availabilityHandset availability

»» Speed of transactionsSpeed of transactions

§§ Carriers unwilling to subsidize WAP handsets?Carriers unwilling to subsidize WAP handsets?

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AT&T’s PocketNet ServiceAT&T’s AT&T’s PocketNet PocketNet ServiceServiceqPremium version offered over Cellular

Digital Packet Data (CDPD) networkqBasic stock quotes, movie & restaurant

listings, directions, Yellow & White pages, email, access to Yahoo! & Excite portals, and ability to access any URL

qOpportunity to migrate users upward to complex technologies later

qAlliance with NTT DoCoMo to use i-mode

qqPremium version offered over Cellular Premium version offered over Cellular Digital Packet Data (CDPD) networkDigital Packet Data (CDPD) network

qqBasic stock quotes, movie & restaurant Basic stock quotes, movie & restaurant listings, directions, Yellow & White pages, listings, directions, Yellow & White pages, email, access to Yahoo! & Excite portals, email, access to Yahoo! & Excite portals, and ability to access any URLand ability to access any URL

qqOpportunity to migrate users upward to Opportunity to migrate users upward to complex technologies latercomplex technologies later

qqAlliance with NTT Alliance with NTT DoCoMo DoCoMo to use to use ii--modemode

Differing Consumer AssumptionsDiffering Consumer AssumptionsDiffering Consumer AssumptionsqEarly is better than perfectqNTT DoCoMo’s Japanese consumers --

largely teenagers and early 20s -- accept lower graphics quality, text-only service for convenience of i-mode programming§ SMS communications with peers§ Independence and control over consumption§ Games and gambling

qqEarly is better than perfectEarly is better than perfectqqNTT NTT DoCoMo’sDoCoMo’s Japanese consumers Japanese consumers ----

largely teenagers and early 20s largely teenagers and early 20s ---- accept accept lower graphics quality, textlower graphics quality, text--only service only service for convenience of for convenience of ii--modemode programmingprogramming§§ SMS communications with peersSMS communications with peers§§ Independence and control over consumptionIndependence and control over consumption§§ Games and gamblingGames and gambling

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U.S. Consumers Want UtilityU.S. Consumers Want UtilityU.S. Consumers Want UtilityqDigital communications device must be

loaded with most popular and convenient Internet services and content§ Website/ portal brand equity matters§ Personalization important

qProviders have 30- to 300-second window to serve/ entertain subscribers§ Short attention span services

qqDigital communications device must be Digital communications device must be loaded with most popular and convenient loaded with most popular and convenient Internet services and contentInternet services and content§§ Website/ portal brand equity mattersWebsite/ portal brand equity matters§§ Personalization importantPersonalization important

qqProviders have 30Providers have 30-- to 300to 300--second window second window to serve/ entertain subscribersto serve/ entertain subscribers§§ Short attention span servicesShort attention span services

Payoff is in m-commerce feesPayoff is in mPayoff is in m--commerce feescommerce fees

qBusiness models are about how to extract rents -- what generates revenues?

qMany services are loss-leaders or must be given away (bundled) in calling plans

qFewer Internet business models can be viable on mobile wireless services

qqBusiness models are about how to extract Business models are about how to extract rents rents ---- what generates revenues?what generates revenues?

qqMany services are lossMany services are loss--leaders or must be leaders or must be given away (bundled) in calling plansgiven away (bundled) in calling plans

qqFewer Internet business models can be Fewer Internet business models can be viable on mobile wireless servicesviable on mobile wireless services

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Some Business Models Fail?Some Business Models Fail?Some Business Models Fail?

qAdvertising model § content provider charges fees for placing

banners, buttons, and other ads on site§ personalized portal offers incentive to

market products to selected consumers

qBut European consumers will listen to commercials in exchange for free minutes

qNTT DoCoMo sells advertising in i-mode

qqAdvertising model Advertising model §§ content provider charges fees for placing content provider charges fees for placing

banners, buttons, and other ads on sitebanners, buttons, and other ads on site§§ personalized portal offers incentive to personalized portal offers incentive to

market products to selected consumersmarket products to selected consumers

qqBut European consumers will listen to But European consumers will listen to commercials in exchange for free minutescommercials in exchange for free minutes

qqNTT NTT DoCoMo DoCoMo sells advertising in sells advertising in ii--modemode

Some Business Models Fail?Some Business Models Fail?Some Business Models Fail?

qAffiliate model§Merchant has affiliates whose Websites

have click through to the merchant§ Every time visitor to an affiliate’s site clicks

through to the merchant's site and buys something, the affiliate gets a fee (percentage of revenues)

qPortals can charge “click-through” fee

qqAffiliate modelAffiliate model§§Merchant has affiliates whose Websites Merchant has affiliates whose Websites

have click through to the merchanthave click through to the merchant§§ Every time visitor to an affiliate’s site clicks Every time visitor to an affiliate’s site clicks

through to the merchant's site and buys through to the merchant's site and buys something, the affiliate gets a fee something, the affiliate gets a fee (percentage of revenues)(percentage of revenues)

qqPortals can charge “clickPortals can charge “click--through” feethrough” fee

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Some Business Models Fail?Some Business Models Fail?Some Business Models Fail?

qInfomediary model§ Collects information on consumers and their

buying habits from personalization profile§ Sells information to firms that mine it for

important patterns to make more-effective offers to attractive customers

qq Infomediary modelInfomediary model§§ Collects information on consumers and their Collects information on consumers and their

buying habits from personalization profilebuying habits from personalization profile§§ Sells information to firms that mine it for Sells information to firms that mine it for

important patterns to make moreimportant patterns to make more--effective effective offers to attractive customersoffers to attractive customers

Business Models That WorkBusiness Models That WorkBusiness Models That Work

qBrokerage Model§ Firms act as market makers to bring buyers and sellers

together and charge for transactions that they enable

qBrokers include those engaged in § buy/ sell, fulfillment, market exchange, buyer

aggregation, distributor, virtual mall, infomediary, auction broker, reverse auctions, sales via classified, and other search agents that bring buyer and supplier together

qqBrokerage ModelBrokerage Model§§ Firms act as market makers to bring buyers and sellers Firms act as market makers to bring buyers and sellers

together and charge for transactions that they enabletogether and charge for transactions that they enable

qqBrokers include those engaged in Brokers include those engaged in §§ buy/ sell, fulfillment, market exchange, buyer buy/ sell, fulfillment, market exchange, buyer

aggregation, distributor, virtual mall, infomediary, aggregation, distributor, virtual mall, infomediary, auction broker, reverse auctions, sales via classified, auction broker, reverse auctions, sales via classified, and other search agents that bring buyer and supplier and other search agents that bring buyer and supplier togethertogether

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Business Models That WorkBusiness Models That WorkBusiness Models That Work

qMerchant model -- wholesalers and retailers sell goods and services over the Internet

qManufacturing model -- disintermediation§ manufacturers try to reach consumers directly

through the Internet § instead of going through a wholesaler, retailer,

or other channels of distribution

qqMerchant model Merchant model ---- wholesalers and wholesalers and retailers sell goods and services over the retailers sell goods and services over the InternetInternet

qqManufacturing model Manufacturing model ---- disintermediationdisintermediation§§ manufacturers try to reach consumers directly manufacturers try to reach consumers directly

through the Internet through the Internet §§ instead of going through a wholesaler, retailer, instead of going through a wholesaler, retailer,

or other channels of distributionor other channels of distribution

Business Models That WorkBusiness Models That WorkBusiness Models That Work

qUtility model -- e.g., prepaid cards§ Customers pay as they go

§ Activities are metered and users pay for the services that they consume» e.g., minimum calling plans

» e.g., users pay per download

qqUtility model Utility model ---- e.g., prepaid cardse.g., prepaid cards§§ Customers pay as they goCustomers pay as they go

§§ Activities are metered and users pay for Activities are metered and users pay for the services that they consumethe services that they consume»» e.g., minimum calling planse.g., minimum calling plans

»» e.g., users pay per downloade.g., users pay per download

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Business Models That WorkBusiness Models That WorkBusiness Models That Work

qSubscription model -- members pay

subscription price and in return receive high-quality content

qOnce customers have paid subscription fee, they often use the service much more than they ordinarily would

qqSubscription model Subscription model ---- mmembers pay embers pay

subscription price and in return receive subscription price and in return receive highhigh--quality contentquality content

qqOnce customers have paid subscription Once customers have paid subscription fee, they often use the service much more fee, they often use the service much more than they ordinarily wouldthan they ordinarily would

Handset Provider StrategyHandset Provider StrategyHandset Provider Strategy

qHandset manufacturers do NOT create own pre-set portals in their devices

qAccelerate investments in 3G infrastructure with technological upgrades before they are demanded

qEncourage “thick client” solutions on hand set, e.g., “smart” devices, SIM cards, more features, PDA-like display

qqHandset manufacturers do NOT create Handset manufacturers do NOT create own preown pre--set portals in their devicesset portals in their devices

qqAccelerate investments in 3G Accelerate investments in 3G infrastructure with technological infrastructure with technological upgrades before they are demandedupgrades before they are demanded

qqEncourage “thick client” solutions on Encourage “thick client” solutions on hand set, e.g., “smart” devices, SIM hand set, e.g., “smart” devices, SIM cards, more features, PDAcards, more features, PDA--like displaylike display

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Critical Carrier’s AssumptionCritical Carrier’s AssumptionCritical Carrier’s AssumptionqAverage revenues per user will NOT fall -

- even as prices fall -- because subscribers’ minutes of use will increase if valuable content is offered

qWillingness to subsidize handsets driven by expectations of 3G desirability

qqAverage revenues per user will NOT fall Average revenues per user will NOT fall ---- even as prices fall even as prices fall ---- because because subscribers’ minutes of use will increase subscribers’ minutes of use will increase if valuable content is offeredif valuable content is offered

qqWillingness to subsidize handsets driven Willingness to subsidize handsets driven by expectations of 3G desirabilityby expectations of 3G desirability

Carrier Seeks Low Churn RateCarrier Seeks Low Churn RateCarrier Seeks Low Churn Rate

qHigher revenues per user § diverse range of subscriber services

§ more minutes of value-adding data services

qGreater subscriber loyalty§ higher personalization and convenience

§ user friendliness and switching barriers

§ offer E-Trade, Schwab or preferred service

qqHigher revenues per user Higher revenues per user §§ diverse range of subscriber servicesdiverse range of subscriber services

§§ more minutes of valuemore minutes of value--adding data servicesadding data services

qqGreater subscriber loyaltyGreater subscriber loyalty§§ higher personalization and conveniencehigher personalization and convenience

§§ user friendliness and switching barriersuser friendliness and switching barriers

§§ offer Eoffer E--Trade, Schwab or preferred serviceTrade, Schwab or preferred service

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Carrier Strategy Could IncludeCarrier Strategy Could IncludeCarrier Strategy Could Include

qMultiple transmission standards for diverse mobile Internet handsets, protocols

qOpen access to encourage third parties to create services to accelerate mobile data use§ cf. France Telecom’s closed environment vs.

NTT DoCoMo’s 4,000 independent sitesqOwn engaging portal -- disintermediate to

information providers (cut out portals)qHandset subsidization

qqMultiple transmission standards for diverse Multiple transmission standards for diverse mobile Internet handsets, protocolsmobile Internet handsets, protocols

qqOpen accessOpen access to encourage third parties to to encourage third parties to create services to accelerate mobile data usecreate services to accelerate mobile data use§§ cf. France cf. France Telecom’s Telecom’s closed environment vs. closed environment vs.

NTT NTT DoCoMo’s DoCoMo’s 4,000 independent sites4,000 independent sitesqqOwn engaging portal Own engaging portal ---- disintermediate disintermediate to to

information providers (cut out portals)information providers (cut out portals)qqHandset subsidizationHandset subsidization

Yahoo! Is Agnostic About Technology

Yahoo! Is Agnostic About Yahoo! Is Agnostic About TechnologyTechnology

qYahoo! builds versions of its portal that are compatible with every mobile standard, every protocol, every language

qYahoo! uses its market leadership to ensure positioning on all mobile devices (in competition with carrier’s own portal)

qqYahoo! builds versions of its portal that Yahoo! builds versions of its portal that are compatible with every mobile are compatible with every mobile standard, every protocol, every languagestandard, every protocol, every language

qqYahoo! uses its market leadership to Yahoo! uses its market leadership to ensure positioning on all mobile devices ensure positioning on all mobile devices (in competition with carrier’s own portal)(in competition with carrier’s own portal)

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Can Independent Portal Survive?Can Independent Portal Survive?Can Independent Portal Survive?qProvide valuable information, e.g., live share

prices, news, weather, reviews qAdapt to multiple mobile platformsqOffer multiple delivery mechanisms, e.g.,

IVR, SMS, WAP, XMLqTechnological leadership -- new platforms q Sell prepaid calling cards to capture cash

flows that carriers will not reverse bill

qqProvide valuable information, Provide valuable information, e.g.,e.g., live share live share prices, news, weather, reviews prices, news, weather, reviews

qqAdapt to multiple mobile platformsAdapt to multiple mobile platformsqqOffer multiple delivery mechanisms, Offer multiple delivery mechanisms, e.g., e.g.,

IVR, SMS, WAP, XMLIVR, SMS, WAP, XMLqqTechnological leadership Technological leadership ---- new platforms new platforms qq Sell prepaid calling cards to capture cash Sell prepaid calling cards to capture cash

flows that carriers will not reverse billflows that carriers will not reverse bill

Can Independent Portal Survive?Can Independent Portal Survive?Can Independent Portal Survive?qBuild alliances with either media partners or

operators at a very early stageqBe flexible about business model if market

potential is attractive enough§ Take percentage of revenues if brand equity is

strong enough (meter traffic created)§ Give away transaction/ content revenues in

other situations -- earn rents another way

qqBuild alliances with either media partners or Build alliances with either media partners or operators at a very early stageoperators at a very early stage

qqBe flexible about business model if market Be flexible about business model if market potential is attractive enoughpotential is attractive enough§§ Take percentage of revenues if brand equity is Take percentage of revenues if brand equity is

strong enough (meter traffic created)strong enough (meter traffic created)§§ Give away transaction/ content revenues in Give away transaction/ content revenues in

other situations other situations ---- earn rents another wayearn rents another way

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Portal Could Ally with BanksPortal Could Ally with BanksPortal Could Ally with BanksqBanks have been building out their

technological platforms in anticipation of 3G networks and services

qBanks have lower churn rates than carriers (due to higher brand equity)

qBanks could give away phones pre-set to their own portals and offer ISP service

qqBanks have been building out their Banks have been building out their technological platforms in anticipation of technological platforms in anticipation of 3G networks and services3G networks and services

qqBanks have lower churn rates than carriers Banks have lower churn rates than carriers (due to higher brand equity)(due to higher brand equity)

qqBanks could give away phones preBanks could give away phones pre--set to set to their own portals and offer ISP servicetheir own portals and offer ISP service

Relegate carriers to mere providers of pipesRelegate carriers to mere providers of pipesRelegate carriers to mere providers of pipes