net neutrality

Why the telecom regulator's plan to make you pay for Whatsapp is bad in theory and practice

Services like Whatsapp are not eating into their revenues. Yet.

The Telecom Regulatory Authority of India has begun to test the ground on the so-called net neutrality debate, which centres around whether internet service providers should be allowed to charge customers differential rates for using applications and web services.

At a seminar held by the TRAI earlier this week, telecommunication companies openly asked firm providing so-called Over The Top services to pay them if they want mobile-phone users to be able to access them. Over The Top services, such as Whatsapp and Viber provide audio and video data over the internet, often replace traditional telecom company services such as messaging and voice.

Cell-phone operators contend that they need to charge app companies a service fee to maintain the service levels mandated by the TRAI. But this is difficult to do when several customers access a network at the same time, said Rajan Mathew, director general of the Cellular Operations Association of India, a telecom company lobbying organisation.

If, for instance, a Facebook video goes viral, and several mobile phone users rush to access it, the website will slow down. On the other hand, if Facebook were to pay the telecom company for an extra server, users would be able to maintain steady access.

“We don’t want mandatory [revenue] sharing,” said Mathew. “This should be left to operators to negotiate. We are asking the regulator to look at this matter and determine what type of regulatory environment should be appropriate.”

Resistance app firms

As is to be expected, those who run application companies stoutly resist the idea that their services should face regulation.

“It is not done anywhere in world,” said Vijay Shekhar Sharma, CEO of One97, a company best known for its Paytm online wallet application. “This is anti-business and a very short-sighted thought.”

The TRAI, he said, should get involved only to ensure that no telecom operator throttles an Over The Top application.

But the real source for the telecom industry’s concerns should actually be TRAI and not application manufacturers.

According to an industry official who did not wish to be named, telecom companies have been losing revenues from their messaging services since 2012, when the TRAI put a cap on the number of messages a single SIM card could send. This solved customers’ problem of unsolicited spam messages, but it also meant a dip in messaging revenues for telecom companies. Despite this, the overall revenues of telecom companies have risen since then.

This was because messaging never formed a large part of service revenues. The largest source of income for telecom companies has always been voice services. Even though voice service replacement applications of the kind offered by Viber and Skype are now available, the prohibitively high cost of data usage on mobile devices deters users.

Loose precedents exist

It isn’t as if Over The Top application firms have not made payments to telecom firms before. Some have done so to ensure that service providers prioritise their services. Bharti Airtel, for instance, closed a deal with Whatsapp in May by which users could pay a nominal monthly amount to access only that application. They would need to subscribe to an independent data package to access other online resources.

But the crucial difference with deals such as this is that users still have the option of accessing other applications at the same speeds and rates as they used to, regardless of whether an application company has paid a telecom company to provide superior access.

“When telcos and OTTs want to jointly promote [their services], it is a business deal between two parties,” wrote Shekhar. “[There is] nothing to regulate and nothing to take as business precedent either.”

According to the industry official, TRAI representatives at the seminar that they were simply seeking opinions. They have, however, noted the question of how Over The Top applications might hurt telecom company revenues in a public consultation paper released on July 31. These papers, published on the TRAI website, are the basis on which the regulator decides to implement new rules. For now, this seminar will only mean something if the TRAI calls for a consultation paper to examine the net neutrality debate further.

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What hospitals can do to drive entrepreneurship and enhance patient experience

Hospitals can perform better by partnering with entrepreneurs and encouraging a culture of intrapreneurship focused on customer centricity.

At the Emory University Hospital in Atlanta, visitors don’t have to worry about navigating their way across the complex hospital premises. All they need to do is download wayfinding tools from the installed digital signage onto their smartphone and get step by step directions. Other hospitals have digital signage in surgical waiting rooms that share surgery updates with the anxious families waiting outside, or offer general information to visitors in waiting rooms. Many others use digital registration tools to reduce check-in time or have Smart TVs in patient rooms that serve educational and anxiety alleviating content.

Most of these tech enabled solutions have emerged as hospitals look for better ways to enhance patient experience – one of the top criteria in evaluating hospital performance. Patient experience accounts for 25% of a hospital’s Value-Based Purchasing (VBP) score as per the US government’s Centres for Medicare and Mediaid Services (CMS) programme. As a Mckinsey report says, hospitals need to break down a patient’s journey into various aspects, clinical and non-clinical, and seek ways of improving every touch point in the journey. As hospitals also need to focus on delivering quality healthcare, they are increasingly collaborating with entrepreneurs who offer such patient centric solutions or encouraging innovative intrapreneurship within the organization.

At the Hospital Leadership Summit hosted by Abbott, some of the speakers from diverse industry backgrounds brought up the role of entrepreneurship in order to deliver on patient experience.

Getting the best from collaborations

Speakers such as Dr Naresh Trehan, Chairman and Managing Director - Medanta Hospitals, and Meena Ganesh, CEO and MD - Portea Medical, who spoke at the panel discussion on “Are we fit for the world of new consumers?”, highlighted the importance of collaborating with entrepreneurs to fill the gaps in the patient experience eco system. As Dr Trehan says, “As healthcare service providers we are too steeped in our own work. So even though we may realize there are gaps in customer experience delivery, we don’t want to get distracted from our core job, which is healthcare delivery. We would rather leave the job of filling those gaps to an outsider who can do it well.”

Meena Ganesh shares a similar view when she says that entrepreneurs offer an outsider’s fresh perspective on the existing gaps in healthcare. They are therefore better equipped to offer disruptive technology solutions that put the customer right at the center. Her own venture, Portea Medical, was born out of a need in the hitherto unaddressed area of patient experience – quality home care.

There are enough examples of hospitals that have gained significantly by partnering with or investing in such ventures. For example, the Children’s Medical Centre in Dallas actively invests in tech startups to offer better care to its patients. One such startup produces sensors smaller than a grain of sand, that can be embedded in pills to alert caregivers if a medication has been taken or not. Another app delivers care givers at customers’ door step for check-ups. Providence St Joseph’s Health, that has medical centres across the U.S., has invested in a range of startups that address different patient needs – from patient feedback and wearable monitoring devices to remote video interpretation and surgical blood loss monitoring. UNC Hospital in North Carolina uses a change management platform developed by a startup in order to improve patient experience at its Emergency and Dermatology departments. The platform essentially comes with a friendly and non-intrusive way to gather patient feedback.

When intrapreneurship can lead to patient centric innovation

Hospitals can also encourage a culture of intrapreneurship within the organization. According to Meena Ganesh, this would mean building a ‘listening organization’ because as she says, listening and being open to new ideas leads to innovation. Santosh Desai, MD& CEO - Future Brands Ltd, who was also part of the panel discussion, feels that most innovations are a result of looking at “large cultural shifts, outside the frame of narrow business”. So hospitals will need to encourage enterprising professionals in the organization to observe behavior trends as part of the ideation process. Also, as Dr Ram Narain, Executive Director, Kokilaben Dhirubhai Ambani Hospital, points out, they will need to tell the employees who have the potential to drive innovative initiatives, “Do not fail, but if you fail, we still back you.” Innovative companies such as Google actively follow this practice, allowing employees to pick projects they are passionate about and work on them to deliver fresh solutions.

Realizing the need to encourage new ideas among employees to enhance patient experience, many healthcare enterprises are instituting innovative strategies. Henry Ford System, for example, began a system of rewarding great employee ideas. One internal contest was around clinical applications for wearable technology. The incentive was particularly attractive – a cash prize of $ 10,000 to the winners. Not surprisingly, the employees came up with some very innovative ideas that included: a system to record mobility of acute care patients through wearable trackers, health reminder system for elderly patients and mobile game interface with activity trackers to encourage children towards exercising. The employees admitted later that the exercise was so interesting that they would have participated in it even without a cash prize incentive.

Another example is Penn Medicine in Philadelphia which launched an ‘innovation tournament’ across the organization as part of its efforts to improve patient care. Participants worked with professors from Wharton Business School to prepare for the ideas challenge. More than 1,750 ideas were submitted by 1,400 participants, out of which 10 were selected. The focus was on getting ideas around the front end and some of the submitted ideas included:

  • Check-out management: Exclusive waiting rooms with TV, Internet and other facilities for patients waiting to be discharged so as to reduce space congestion and make their waiting time more comfortable.
  • Space for emotional privacy: An exclusive and friendly space for individuals and families to mourn the loss of dear ones in private.
  • Online patient organizer: A web based app that helps first time patients prepare better for their appointment by providing check lists for documents, medicines, etc to be carried and giving information regarding the hospital navigation, the consulting doctor etc.
  • Help for non-English speakers: Iconography cards to help non-English speaking patients express themselves and seek help in case of emergencies or other situations.

As Arlen Meyers, MD, President and CEO of the Society of Physician Entrepreneurs, says in a report, although many good ideas come from the front line, physicians must also be encouraged to think innovatively about patient experience. An academic study also builds a strong case to encourage intrapreneurship among nurses. Given they comprise a large part of the front-line staff for healthcare delivery, nurses should also be given the freedom to create and design innovative systems for improving patient experience.

According to a Harvard Business Review article quoted in a university study, employees who have the potential to be intrapreneurs, show some marked characteristics. These include a sense of ownership, perseverance, emotional intelligence and the ability to look at the big picture along with the desire, and ideas, to improve it. But trust and support of the management is essential to bringing out and taking the ideas forward.

Creating an environment conducive to innovation is the first step to bringing about innovation-driven outcomes. These were just some of the insights on healthcare management gleaned from the Hospital Leadership Summit hosted by Abbott. In over 150 countries, Abbott, which is among the top 100 global innovator companies, is working with hospitals and healthcare professionals to improve the quality of health services.

To read more content on best practices for hospital leaders, visit Abbott’s Bringing Health to Life portal here.

This article was produced on behalf of Abbott by the marketing team and not by the editorial staff.