Telefónica - The Worst Business in the World
Telefonica has been voted on my blog as the worst company in the World. Their latest idea may well be the worst they have ever had. Before telling you about it though you need to know a bit of background. Telefonica is the ex-state monopoly telephone supplier in Spain. To all intents and purposes it still is as it is the only option in most of the country if you want a telephone line.
Telefonica announced yesterday that they are going to start charging search engines for using the service they provide, ie the lines. Therefore the consumer will effectively either pay twice as the search engines would have to somehow pass on the costs, or the search engines would deny service to people who use the Telefonica service and as mentioned above when they are the only option this means that you wouldn’t be able to use Google, Bing, Yahoo etc…
What the reaction of the search engine companies will be is as yet unknown but the reaction of the users of Telefonica’s services is unanimous. This situation has been compared to Iberdrola, the electric company, charging the white goods’ companies for using their electricity. I believe that there is no legal precedent for this either so this could drag through the courts for a very long time.
Again this is a situation where the Spanish company is only thinking about the bottom line and short term. Those who have an option on getting their lines, usually in the big cities, will quickly change their supplier over to the cable companies or the mobile companies to whom you can pass your fixed line rental and new clients will not sign up to a service where you cannot get the tools needed to take full advantage of it.
Related Posts:
1) Entrepreneur Thoughts Category
3) The Immediate Edge and Edge Blueprint
Telefonica a national disgrace, I think so
Related Posts
2) The Entrepreneur Thoughts Category
3) The Story in El Pais (In Spanish)
Originally posted 2010-02-07 15:46:12. Republished by Blog Post Promoter
Comments Closed
3 Responses to “The Worst Idea Of All Time – How Telefonica Doesn’t Get It”
Sorry, the comment form is closed at this time.
[...] admin published The Worst Idea Of All Time – How Telefonica Doesn’t Get It. [...]
They deserve everything they get, communications technology is so crucial to Spain’s future, and this dinosaur ex-monopoly is a huge drag on progress and entrepreneurship. Well said!
I didn’t think it would take long to find someone to agree on this point