April 2nd, 2008
My Profile is my Cell
In the 1990s the cell phone number was the key component in our virtual identities. That number was the unique identifier that represented us, and was the main conduit of communications with our friends. We were asked to leave our name and number, as if both held equal claim to us. However, throughout the 90s and beyond, that number locked us in to a deal with a specific carrier. To change providers you had to jettison your old number, your old identity, and start again afresh. The price of this freedom was paid in lost friends and missed opportunities.
Much of the role of the cell phone number as the centre of our digital identity has been usurped by our social network profiles. Our unique identifier is now our URL, messages that once might have been SMS texts now find themselves on our Facebook walls or in status updates and the profile has become the main conduit of communications with our friends. Our digital identities have become much richer with the web of content and relationships our profiles display and yet the same problems remain. Our profiles lock us in to a specific provider and to change means jettisoning everything and beginning again with nothing.
The fight to make our cell phone numbers portable, to be able to change service providers without paying such a heavy price, seems remarkably similar to the fight to open up the social networks that we see today.
Throughout the 90s there was a rising tide calling for the right to take your phone number with you if you changed providers. The carriers saw number portability as a threat to their valuations and lobbied against it furiously; without it there would be few ways to compel subscribers to stay with their service. They knew one thing: lock in the number, lock in the value; export the number, export the value. They feared a commoditized, cut-throat world where the business of today could vanish by tomorrow.
Today, the social networks’ value is derived from the content (be it your words, photos or friends) with which it is populated. They also know one thing: lock in the content, lock in the value; export the content, export the value. There’s little chance that a $15bn valuation at such variance to performance could be sustained in an open interoperable world, and one might actually have to go back to calculating valuation in far more boring ways like as a multiple of revenue.
This is the crux of the problem that the large-scale social networks face, they know that calls for openness will only become more strident over time and that to survive in the long term they must open up. And yet if they lose the vendor lock-in and thus potentially have to recalculate their valuation, their investors will be out for blood. Stuck between a rock and a hard place, they suggest palliative measures such as widgets being available across multiple networks and mutual email exchange between oligarchs. None of which really gets us any closer to an open interoperable network where we can move our identities to whichever provider best satisfies our needs.
In 1996, the FCC mandated that all cell phone numbers should be portable, and then the fight began in earnest. The carriers claimed that of course they would like numbers to be portable, but there were huge technical barriers that would cost $1 billion to implement. Unsurprisingly, these technical barriers turned out to be less than insuperable and the $1 billion estimate turned out to include such costs as retraining sales representatives.
Next they claimed that there was no demand as large volumes of subscribers were already switching carriers despite the lack of a persistent portable number. This was something only a few people really cared about and thus there was no need to spend money on a demand that didn’t really exist.
We seem to be seeing very similar arguments coming from the major social networks today. Facebook representatives regularly claim that they want to move towards openness but technical barriers and privacy problems are slowing them down. Technical barriers and privacy problems that smaller more nimble systems without the access to Facebook’s funds and engineering talent seem to have dealt with without issue.
We are also told that people enjoy being able to cut free from their old identities and begin again afresh. Apparently, being able to move your friends and content around with you to whichever service you want them to be on is a non-problem only found within the geek community, and those who push for it need to step outside the bubble. The same viewpoint suggests that people ‘enjoyed’ the opportunity to dissolve old social connections with the change of a phone number and found that a benefit of switching carriers was the ability to start again with a blank slate. Just who is in the bubble here?
The same problem, the same arguments and the same intransigence. The carriers fought tooth and nail to appeal the FCC order and it took seven years for number portability to become possible. Even after that, the carriers went out of their way to make the process difficult for their subscribers: AT&T customers complained that taking their number from AT&T to another carrier was taking several days, instead of the two to three hours it was supposed to take and that AT&T’s customer service representatives were not being helpful, with hold times on phone calls often lasting hours. We’ve seen a similar philosophy behind the roadblocks put in place for those wishing to delete their Facebook account and there seems to be no rush on their part to improve this situation.
What made persistent portable identity possible in the cell phone sphere was overwhelming pressure from outside forces, in this case the FCC, and even then it took years. It seems that it will take a similar timeframe and measure of external force to compel the social networks to open up too. This time, though, that force is more likely to come from open networks invading market share, rather than from government intervention. However, the social networks can take a measure of comfort from the carrier experience too.
Since number portability was introduced, subscriber churn has not been as great as many feared. Customer service, price and network availability, strategies that facilitate rather than exploit their subscribers, have become the keys to retention. If the social networks were to open up, they might have to face more competition on quality of provision and innovation, but for the market, the users and their own long-term success that’s no bad thing.
