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If AT&T Had Managed the Phone Business Like Google

tedgioia.substack.com

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Re: If AT&T Had Managed the Phone Business Like Google

#11

Fun read! Drawing parallels of today’s world with the past. In some ways phonebooks of the past aren’t too different than the modern search engine. Hundreds of numbers (urls), a central lookup, and prominent placement to get your business ranked ahead of millions of others. As long as we have phone books, the person who took the time to write it all will always win.

A phone book is literally an alphabetically sorted key-value table. Several tables usually, the secondary one is just on businesses and those might be sorted by a third column of 'type' first.

Indexes for phone books also existed, I forget if they used to be notched in the side like better dictionaries.

Re: If AT&T Had Managed the Phone Business Like Google

#12
post #7

Earlier quoted context omitted.

Fun?! When it came up two weeks ago I felt like it was making me more ignorant. Here's what I wrote at https://news.ycombinator.com/item?id=28473805 : This makes no sense. It's like the author has zero knowledge of the relevant history, including things I learned in high school American history. Don't read it unless you want to get dumber. At the very least, here's some of the missing real-world context. The Mann–Elk…

Interesting factual analysis. I think the original piece was written as parody of Google, though, rather than as a criticism of At&t per se

Criticizing politicians for taking //bribes// (Pac money) was also a great call. Things went both ways for criticisms.

Re: If AT&T Had Managed the Phone Business Like Google

#13

> MR. GOOGLE: Oh yes you can—if you’re letting people make phone calls for free. They have no choice in the matter, do they? But that’s only the start. We will match the advertising to what customers are discussing on their calls. So if mom is complaining about her back pains, we pitch a healing ointment or some other medicinal product. If dad is calling about his car breaking down, we tell him about the latest Ford…

> It kind of ruined it for me to have suggestions like this that were totally impractical with 1920s technology.

This text is not about what could or couldn't be done 100 years ago. It is about today.

Re: If AT&T Had Managed the Phone Business Like Google

#16
post #6

I really thought it would be more subtle than that. Google sells its phones, charges for it's phone plan (market rates on both) and certainly doesn't advertise during calls. Google uses advertising to pay for services with near-zero marginal cost. That's a pretty new phenomenon, so it's not surprising that AT&T never thought to give away ad-supported hardware to use on it's limited capacity, circuit-switched network.

I think AT&T and telephone business are a bad analogy, exactly because Google kind of is involved in the telephone business and does not apply these stratagems there.

For me the point of the article is the strategy Mr. Google uses currently in other fields: They offer you a product for free, a product way better that other (even paid) offerings, to capture the market and to collect data and serve ads inside those products. This doesn´t apply to Android so much, but take Gmail, Google Maps, Search, YouTube. All these services are ostensibly given away for free (like AT&T phones in the article), but have their performance compromised by ads everywhere plus they siphon the user data like a vacuum.

So to paraphrase your criticism: Google doesn´t sell its maps, but pushes the paid listing with larger map icons. Google doesn´t sell its search, but gives adverts when you´d expect the honest best result for your query. Google doesn´t sell the videos (barring the paid offerings), but prepends and interrupts them with ads.

This article just applies these tactics to something we are so familiar with - the phone service.

>>services with near-zero marginal cost

I might be loking at this from the point of view of current, digital, automated and interconnected networks, but the way I see it, a phone network has near-zero marginal costs, too. Once you have built the network, your marginal cost per-call are quite low. I´d say comparable to relaying an email or replying to a search query once the infrastructure is in place.

Re: If AT&T Had Managed the Phone Business Like Google

#17
I don't think people realize just how expensive and congested these networks were back in the day. Phone calls cost what they did because capacity was a real constraint. It's not that they were all ethical businessmen doing a public service as the article makes them out to be (some old business tactics of AT&T, Standard Oil, American Tobacco etc. would make the most ruthless big tech exec of today blush). They simply could not conceive of a business model where customers could use their service 24x7 because it was impossible to provide it.

You don't even have to go all the way back to the 70s or 80s to see this. We used to pay by the minute for dial up internet and cell phone calls well into the 00s.

The "all you can eat" business model — whether ad-supported or for a fixed monthly fee — is a very recent invention, and is only possible because of massive improvements to the underlying infrastructure (fiber, LTE, cheap servers).

Re: If AT&T Had Managed the Phone Business Like Google

#18
This is not a good analogy at all for so many reasons.

Here is something closer.

Google went to University and read all books and created the worlds largest filing cabinet with an amazing index of the worlds information.

They decided to allow other students to use the index to help track down the information they need for their assignment. They ask Google, where do I find information about X and Google tells them they will find it in some obscure corner of the library they would never have thought to look.

The index becomes so popular that some business people show up and suggest to Google that if people are looking for information about X, they might also want to buy some Y. Google shrugs and says, sure I'll tell them about your product as I send them off to find what they are looking for.

Then Google notices that email sucks (and they fix it), and maps suck (so they fix it). Then they buy the local video store and make it really popular.

But by this time Google is so huge its a mostly out of control monster.

Re: If AT&T Had Managed the Phone Business Like Google

#19

> MR. GOOGLE: Oh yes you can—if you’re letting people make phone calls for free. They have no choice in the matter, do they? But that’s only the start. We will match the advertising to what customers are discussing on their calls. So if mom is complaining about her back pains, we pitch a healing ointment or some other medicinal product. If dad is calling about his car breaking down, we tell him about the latest Ford…

> It kind of ruined it for me to have suggestions like this that were totally impractical with 1920s technology. This text is not about what could or couldn't be done 100 years ago. It is about today.

It's a fantastic story written today. Each recipient can only receive it by realizing the ability to read it - whenever that time is to be found.

This makes the more timeless properties interesting, perhaps.

For example, those who own the tools of production can enter to grab for the large share of the market that can do nothing but not go away until all are free or all are dead.

It's less that this was impractical in 1920s, it's more that each period has the monopolies of its time.

Re: If AT&T Had Managed the Phone Business Like Google

#20

This is not a good analogy at all for so many reasons. Here is something closer. Google went to University and read all books and created the worlds largest filing cabinet with an amazing index of the worlds information. They decided to allow other students to use the index to help track down the information they need for their assignment. They ask Google, where do I find information about X and Google tells them the…

100%.

I recently read "Software Engineering at Google" https://www.amazon.com/Software-Engineering-Google-Lessons-P..., and my take away was that engineering culture matters a lot to drive any success and innovation. Those who work there have the freedom to challenge anything, to steer the product, and as a result, find opportunities as described in the previous comment and fix it. The management works on shaping that innovation.

There is a graveyard in most Telecom company. ATT bought ad tech business AppNexus and media giant WarnerMedia back in 2018 (stone age of the internet) and didn't manage to operate it well, it's not the only one, Verizon has heavily in ad tech and media companies such as Yahoo!, but none of these companies brought the same internet culture shifting in the market as Google/FB/.. etc. We all love to hate social media companies, but these companies managed to tap into the opportunities presented and -arguably- didn't stop innovating.

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