{"id":4990,"date":"2011-08-21T13:54:17","date_gmt":"2011-08-21T17:54:17","guid":{"rendered":"http:\/\/mhgoldberg.com\/blog\/?p=4990"},"modified":"2011-08-21T14:12:42","modified_gmt":"2011-08-21T18:12:42","slug":"volvo-versus-jaguar","status":"publish","type":"post","link":"https:\/\/mhgoldberg.com\/blog\/?p=4990","title":{"rendered":"Volvo versus Jaguar"},"content":{"rendered":"

Is Canada’s telecom policy partly to blame for RIM’s woes? That is the opinion being expressed by University of Ottawa professor Michael Geist<\/a> in his article<\/a> this week in the Toronto Star<\/a>. As I tweeted through the weekend, I think this is a bit of a stretch. Unlike Mark Evans’ article<\/a> last week, Professor Geist isn’t looking for the government to fix what ails RIM.<\/p>\n

While RIM\u2019s current problems can\u2019t be solved by government policy, some of its shortcomings may be a product of Canadian policy. Indeed, RIM is the quintessential Canadian technology company, reflecting the market\u2019s strengths and weaknesses. If the government wants to avoid a Nortel repeat, part of the solution lies in addressing the problems that plague Canadian telecom policy.<\/p><\/blockquote>\n

But as you work through the Star article<\/a>, I think there are some fundamental logical flaws.<\/p>\n

For years, co-founder Mike Lazaridis promoted the data efficiency of RIM\u2019s BlackBerry, while emphasizing that wireless spectrum is a finite resource. From RIM\u2019s perspective, efficient use of data makes its devices more attractive to wireless carriers, which incur lower costs when compared with bandwidth-hogging devices such as the Apple iPhone.<\/p>\n

The emphasis on spectrum scarcity and the value of currying favour with telecom carriers is very much a product of the Canadian marketplace.<\/p><\/blockquote>\n

Spectrum scarcity is not a uniquely Canadian challenge. It is a real engineering challenge for carriers around the world and the regulators who control the availability of new frequencies. As you continue to read through the Star article, ask yourself how many GSM carriers operated in the US market, where Apple had an exclusive deal with AT&T.<\/p>\n

That RIM has had efficient spectrum utilization as a primary design criteria speaks to the engineering mindset in RIM’s leadership. It is reminiscent of the Dudley Moore ad for Volvo<\/a> in Crazy People<\/a>: “Volvos are boxy but they are good.” Blackberry is boxy but it is good. Apple’s iPhone is more of a Jaguar.<\/p>\n

RIM’s woes weren’t caused by Canada’s government, nor will they be solved by it.
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