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Convergence in ICT Challenge and opportunity for the telecoms industry
Convergence is no longer a buzzword used by people who want to stir up the ICT landscape. It is real and starts to happen in nearly all ICT related fields. It ranges from rather simple convergence cases like fixed-mobile telephone services to much more complex cases involving digital content, networks, services and devices. The emerging “Triple Play” shows where the future could be going. Triple Play, or sometimes even called “Quadruple Play” to stress the involvement of mobility, implies that all data, voice and video services will finally converge in an IP-based Next Generation Network. Jes Thorisson, vice president data services of Iceland Telecom, is aware of the chance of converging ICT services to telecommunication companies: "Competition from CLECs (Competitive Local Exchange Carriers) and power utilities requires us to take an aggressive approach towards rolling out Triple Play services," he said in an Alcatel press release. The market research organisation Heavy Reading found out that “Triple Play is no longer just a revenue enhancer, but a must for long-term survival”. In the future, there is not much money to make with transporting bits from A to B. Hence, network operators will have to position themselves also in other areas of the value chain and provide services in a more integrated way, if they want to stay profitable. Users like converged ICT services Currently a typical advanced information society member has subscribed to several independent ICT services: fixed telephone, mobile telephone, Internet access, Internet services, and cable TV. Most of these services are provided by different provider companies, billed individually, and can amount to significant costs. If users are lucky, they get some services in a bundle. For example some cable TV companies provide a package including Internet access and service, or some fixed network operators provide a fixed-mobile converged service. BT has just started its fixed-mobile service “BT Fusion” (former “Bluephone”). BT Fusion is in fact a mobile phone that automatically switches from mobile to landline call rates when you get home. The main reason is to get rid of the fixed network phone and still make cheap telephone calls from home. Most users have a precise view on what they are willing to pay for their ICT services. The more services they can get in a converged bundle, the closer they come to this view, or even have spare money available to enhance the one or other service. The Strategis Group found out that “71% of consumers want cable TV as part of their bundle“. Convergence is a hot topic In a more general sense, convergence has been defined by the Internet Industry Association (IIA) Convergence Virtual Taskforce: “Conversion is about the collapse of disparate technology, equipment and services into a set of common and ubiquitous technology, equipment and services.” Convergence in ICT is becoming an increasingly hot topic. With this cover theme, Eurescom mess@ge sheds some more light on this promising issue. The following article on the “Networked and Electronic Media (NEM) Initiative” reports about the convergence of media and telecoms. NEM focuses on an innovative mix of various media forms, delivered seamlessly over technologically transparent networks, and represents the convergence of existing and new technologies, including broadband, mobile and new media across all ICT sectors. T-Online International is highly involved in providing and developing converged services. They describe how convergence and individualization dominate the current developments in the European Internet markets. Finally we include an interview with Johan Lindén from the national television broadcaster in Sweden, Sveriges Television, on his views concerning the effects of convergence on content providers and broadcasting companies. Conclusion Convergence is happening. The effects will strongly influence the businesses of the involved players. Convergence has the power to make companies vanish from the market, but also to help companies blossom, if they play the convergence game right. More information:
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