Sixteen: MOT v NOK - a Tale of Two Telecoms

On January 21, 2007, I wrote about the miserable state of affairs at MOT. Nothing has changed. Yes, Zander is out and Brown is in. But from all appearances, Brown does not have the inclination or gumption to do what needs to be done - spend the next two to five years selling off MOT assets. In other words, liquidate the company. There is simply no way for MOT to recover from the past decade of mismanagement.

MOT stock is today valued at the same price as it was in 1996. NOK, on the other hand, is valued at roughly 1,500% more than 1996. What's the difference? People. The people at MOT opened the door for NOK in the mid-nineties when what was then AT&T (ATW) Wireless wanted in to the cell phone business. ATW first went to MOT and asked for specific phones at specific times. MOT did what MOT has always done, at least for the past 30 years - they dissed the customer, telling ATW what MOT would provide and when. ATW said "thank you very much" and walked down the street to NOK and made the same request for phones and delivery times. NOK said, "Yes Sir and Yes Ma'am!" NOK has never looked back, except to see MOT choking in NOK's dust. MOT has never understood, and perhaps never will understand, the concept of "the customer is always right."

So, what's the future? MOT will be the equivalent of an Alzheimer's patient in a nursing home - slowly but inevitably withering away.