‘Network Externalities’ and How it will Benefit BlackBerry


Net huh, what?

I had not heard this term before.

A Seeking Alpha article caught my eye today saying that “BlackBerry’s John Chen Looks To Teach Haters About ‘Network Externalities’ “

Although I did not find a reference to John Chen saying anything, I did find this new (to me at least) term interesting. Especially in light of this:

Through network externalities BlackBerry has the potential to achieve top line growth despite a collapsing ecosystem.

So, what is Network Externalities?
Pretty good analogy here:

“Network Externalities” Key To BlackBerry’s Turnaround

The more companies that adopt BlackBerry’s enterprise mobility platform ( “BES 12” ), the more powerful its platform becomes. “Network externalities” describes the change in the benefit a person receives from a product when the number of people using that product also changes. According to a study by the University of Texas at Dallas and North Carolina State University, a good example would be the fax machine:

As fax machines increase in popularity, for example, your fax machine becomes increasingly valuable since you will have greater use for it. This allows, in principle, the value received by consumers to be separated into two distinct parts. One component … is the value generated by the product even if there are no other users. The second component, which we have called synchronization value, is the additional value derived from being able to interact with other users of the product, and it is this latter value that is the essence of network effects.

BlackBerry Leads With Enterprise Mobility …



I am a long time BlackBerry user and fan. Beginning with the 7520, I have recognized the value of subtle productivity enhancements in BlackBerry devices for business communication and have never since strayed. Even when the iPhone took the market by storm, I was unimpressed, because it did nothing to help my business needs. Currently enjoying my one handed dream phone, the Classic! BB10 with a toolbelt! Today I contribute to UTB whenever I feel that I can help enlighten someone on the benefits of using BlackBerry over any other platform.