So after 15 years in the making, the Duke returns... and he's showing his age. I have to admit a feeling of regret at both the wait and the poor quality of the game: I spent many happy days in front of my Escom Pentium 100 (another long forgotten victim of the dotcom demise) blasting aliens and shooting gum. Perhaps I'll buy it anyway - one star for nostalgia...
Following yesterday's post, here's some related thinking on the impacts on operators of handset leasing. Handset sales represent around 25% of operator revenues in a typical European market, but generate only around 5% of margin. It may therefore be the case that the scenario described would lead operators to a more profitable structural model than exists today. Oil companies are consistently and acceptably profitable, despite being (literally in some cases) the ‘dumb pipe’ that operators are so desperate to avoid becoming. One of the reasons for the oil majors sustained profitability is clear focus on their role in the value chain – to supply the fuel that enables transportation, relying primarily on location, then brand and finally product innovation to compete. BP or Shell do not need to subsidise the purchase of a car in order to drive consumption of fuel because consumers are ‘hooked’ on it (it gets them from place to place) and there are many credible car manufacturers an...
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