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Maybe you haven't noticed, but what is happening in the telecommunications market has a lot in common with the automotive industry.   Perhaps I believe this is so because I work in telecom and my brother works for an automotive company, but I don't think that's the only reason.  Here's why.

• Mergers, acquisitions, and buyouts everywhere.  Let's see....  Cisco alone has purchased 40 companies in the last five years.  Meanwhile car companies have been bought and sold, and bought and sold - Chrysler is a good example - owned by Daimler-Benz, then an investment company, and now Ferrari.
• The government has been "involved".  Broadband stimulus for the telcos (and perhaps governemnt help for what's left of Nortel?) "Cash for Clunkers" for the auto companies (along with multi-billion dollar bailouts for GM and Chrysler).
• Market changes wrought by new technology and customer requirements.  For telco - IP, wireless, Apple and the iPhone, Google.  For the auto companies - hybrid vehicles, in car systems - GPS, Ford/Microsoft "Sync", Bluetooth, MP3/iPod/iPhone connections - desire for quality and value.

What it all means to me is that telecommunication companies should take a look at Ford's plan for success - it seems to be working well.

1. Accelerate new product introduction - replace or refresh 70 to 90 percent of product lineups.  How many new products have arrived in telecom over the past 5 years?  Does anyone have plans to refresh to replace 70 to 90 percent of the product line - or just "make do" with the old stuff?
2. Reduce structural costs.  That could mean a more rapid transition to optical/IP networks and faster retirement of legacy PSTN/SONET-based technologies.  And say, wouldn't a refresh/replacement of back office systems get costs down?
3. Be careful about taking government money.  Ford  acquired private funds during the downturn, then spent the money on new products.  GM and Chrysler took the goverment money and have spent millions on financial advisers and supporting government bureaucracy.   For telecom, the question is:  "What real results have we seen from the broadband stimulus initiative?  How much longer will it be before we see any - if at all?"
4. Rollout new products to reduce product age by 20% by 2014.  What would that take for telecom to do the same?

The auto industry and telecommunications both have a long, rich history of success.  However, changing times means changing the business - significantly - to remain successful.  Telecom companies might look to Ford as a harbinger of doing business in a global, rapidly changing, economy.  That means investing in new products, reducing structural costs, and being careful to avoid government subsidies that hinder their abilities to capitalize on emerging market opportunities.