ROI Micro Mismanagement

After formulating the Quality versus ROI statement, I have started noticing a great deal of real world confirmation cases. So excuse me my dear tech / gadget followers, from time to time I will be returning to this subject, which I consider fundamental.

This week's case? I lost my cellphone connection.

I live just 15 minutes from a big city. Just a mile from a main road. And despite having four mobile network operators (MNOs) in Poland, I have no coverage. True, the terrain is a bit unfortunate (a valley). True, there are just a few houses down here. But I have been cut out. And this turns out to be a problem nowadays. I have a copper landline, delivering DSL Internet and fixed voice service. Theoretically I could set up a call forwarding rule to the landline, when my cellphone is out of the network, even if this costs extra money per forwarded call. But I cannot forward SMS messages, which is a blocker in most Internet banking operations, as almost every transaction today has to be confirmed using one time security codes delivered via SMS. Even credit cards now require SMS confirmation codes.

For several years I have been using the ingenious UMA service provided by Orange. I wrote about UMA a lot here and it was a life changing service fro me, using my WiFi and my DSL line to connect my cellphone to the MNO's network. It could even had over a live call from GSM to WiFi or vice versa. And everything worked, including SMSes. Unfortunately Orange turned the UMA service off for good on May 31st, 2011. The reason? The project was not a business success. Read: not enough customers using it. But hardly anyone knew such service existed, and anybody I was recommending the UMA service to was saying "WOW, brilliant, I want this!". So failed marketing, for sure. And probably they were not making enough money on this service alone to justify keeping it alive (even though it was offloading their core network, as I was using MY WiFi and MY DSL to carry calls I paid Orange for).

Obviously today I am very unhappy customer of Orange, feeling no obligations to stay and considering other options. Unfortunately there are none. Because none of the MNOs covers my home. They probably all made a study and calculated they will never make money erecting a base station in our village. In some sense I agree.

But it is very short sighted strategy to provide coverage only in places where many people will use the network. Our little valley is a very popular destination for weekend escapes. And quality of a mobile network in 2011 is not about providing coverage in densely populated areas alone. It is about providing coverage everywhere. It is not how profitable this single-BTS profit center would be. It is about general opinion customers have.

T-Mobile runs a 100M PLN marketing re-branding campaign as I write. Could not they use 1% of this silly budget to cover the gaps and improve the service? Probably not, because their BI software and business dashboard indicators show they would be losing money on a remote base station in a forgotten valley. And turning off the UMA service, Orange has just thrown away a fantastic tool to solve difficult coverage problems.

And please do not tell me we (as a nation or as a civilization) cannot afford bringing good service to difficult areas. Generally speaking, we run for the money, squeezing every last cent, often losing the quality of everyday life. It is foolish. But looks like today many seem they do not understand this concept.