DMR | Detecon Management Report
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Same game, new rules
Future service models and their effect on the ICT industry
Looked at from a highly simplistic angle, there are three basic types of communications: >person to person, >person to machine, >machine to machine. The goal of the telecommunications service industry is to support these communications types in such a manner that the end-user is happy with the value of the service (i.e. quality, features and price) and the service suppliers are happy with the financials (price and costs).
Communications services in transition: disappearing boundaries
The world is seeing the development of a hybrid understanding of technology and business. The traditional views of infrastructure, applications, information and business are challenged by intelligence. Data is evolving into information, information into knowledge and knowledge into intelligence. Autonomic systems are becoming possible which can self configure and self correct. And all of this is leading to better services.
We are at a period in the history of communications where everything is changing rapidly - from the technologies being used, to the legislation that governs it, to the business models used to make money from it. The distinction between Telco Carriers, Mobile Operators, Internet Service Providers, Broadcast Providers and Outsourced Enterprises was once clear, but now we are seeing fuzzy demarcation lines. This fuzziness is being driven by changes in technology.
In addition we are faced with market forces which are challenging the previously well thought out business plans: consider for example the upset created by Open Source, Skype, the rise of the Chinese market economy and what can be termed the Google effect.
To make matters worse we have the agendas of each market leader trying to survive and drive their own versions of standards.
Convergence as a global trend
The key driver for these changes in technology is convergence, and the convergence that is currently happening is not unique to any one country. It is a global trend and therefore a global communications issue. There are a number of rapidly evolving telecommunications packages and operators wanting to provide multi-play services (voice, video, gaming and data) over the same medium. This means that we could soon see traditional operators carrying not only voice, but also Internet and TV into the home via the same medium (cable, fiber, wireless,..). These models will be challenged by on demand services which in turn will be challenged by blended services.
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