Scott McNealy Has Apparently Never Heard Of AOL Time Warner
from the bad-advice dept
Diversifying into application or content markets would divert the telcos' focus away from this core competence. Hybrid network/content companies don't exactly have a great track record. The most spectacular example is probably AOL Time Warner, which, um, didn't work out too well. And the examples McNealy cites don't really work either. He mentions eBay's Skype acquisition, but Skype is an application, not a network provider. Google's participation in the spectrum auction is a better example, but Google has made it pretty clear that its goal isn't to direct customers towards its own sites so much as to ensure that the existing telecom companies don't interfere with customers' access to Google properties. And in any event, Google hasn't even won the auction yet, to say nothing of actually building the network. If it does build its own network, it may turn out to be as big of a disaster as AOL Time Warner was. Telcos should stick to what they know best, and leave website development to companies like Google and Yahoo!