CW Optus finally taming the broadband
dragon Emma Connors Page 47 (
556 words ) Tuesday, 15 Feb 2000 From section:
Computers e-Strategy Publication: Australian Financial Review
The humble home internet user is the key to building a
successful broadband interactive business, according to Cable
& Wireless Optus director of multimedia and internet,
Donna Lachance.
Name an internet player, or any wannabe internet player,
and it's likely to be in discussions with C&W Optus.
Portal operator Excite@Home is believed to be contemplating
transferring its Asia Pacific licence to the telco, and
would-be digital television stars Microsoft and Oracle are
interested in C&W Optus's emerging broadband credentials.
News providers including the ABC are eager to strike content
deals. Then there are the banks and the retailers which want
to add an e-business element to their consumer offerings.
C&W Optus director of multimedia and internet Donna Lachance
is reluctant to give detail on emerging deals but notes
determining the right partners is just one part of a complex
corporate balancing act.
``Everyone is trying to put together the elements of a
successful new media company. We think Optus has terrific
access to customers, demonstrated success in getting
communication products into the home or business, and
reliability in delivery of telephony grade services in the
internet market.
``But the challenge for us is getting the market to
recognise the value of what we do. The problem lies in
traditional valuations versus new media valuations."
Lachance is hopeful the market is now waking up to the fact
that the next phase of growth should come from bricks and
mortar companies. ``It's time to take this game from the
experiment stage to the real world."
This is one reason why Lachance does not favour spinning
off an internet business.
``If you spin it off and don't maintain ties to the main
corporate [entity] you have not done the full job."
After a delayed start C&W Optus is now, according to
Lachance, successfully taming the broadband dragon. In
Brisbane, Melbourne, and Sydney the company hopes to have
signed up roughly 22,000 customers to its high-speed cable
internet access service by the end of the year. Add these to
the 130,000 odd now using the carrier's dialup service and
Lachance maintains the company has the base it needs to build
a formidable interactive business.
``Success in the ISP market is important because it is the
first digital relationship customers have. The trends are
unmistakable. Digital communications will exceed voice traffic
and the amount of e-mail already exceeds snail mail. There is
going to be a battle over e-mail addresses as these become
increasingly tied to communication services.
``[However] There are three key questions we don't know the
answer to. We don't know what platform or set of platforms
will be the winner. We don't know exactly what the business
model will be, that is, where the value will be created and
which parts of the business will make the money. Most
importantly, we don't know what the winning consumer
experience will be."
But Lachance is confident C&W Optus has the necessary
entrepreneurial management.
``You have to allow the new age and the traditional to
co-exist and that's what Optus does well. Mainly because
leadership gets it. If you look at the top management team,
I'm actually the oldest manager of a line of business and I'm
44." |