NXTcomm: Sun’s McNealy: Carriers Feel Inferior to Internet Players

He said telcos have the buying power with their device providers to easily work out such deals, while still allowing customers to access Yahoo or other sites – but through multiple clicks so their’s is the easier option.

Telco Destination Sites

McNealy also suggested the telcos might build their own social networking sites and incent subscribers to post video to their sites, as opposed to a YouTube or MySpace, by offering discounts or free minutes to the folks that do the posting and are drawing others to their site.

To help service providers do this, Sun is building out a service destination site solution, which provides turnkey infrastructure, including 24/7 support, McNealy said. When asked whether this is a productized offer, McNealy said “it’s a demo,” but also indicated it is already in commercial use with at least one service provider abroad.

“Either the telcos become destination sites or the destination sites are going to turn into telcos,” McNealy said.

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