Time to redefine telecom - broadband-internet
Telecommunication, according to Wikipedia, is the augmentation of communiqu? over a distance. In practice, it also recognizes that amazing may be lost in the process; hence the term 'telecommunication' covers all forms of detach and/or conversion of the first communications, plus radio, telegraphy, television, telephony, data consultation and central processing unit networking.
While crucial telecom gets more and more difficult, the profit and ethics after the affair keep on diminishing. SBC spent $16B to a band whose revenue cascade is declining more than 10% year over year. Verizon bought MCI, and in order to make deal lucrative, they say they will suspend over 7,000 people.
The analyze for scaling-down in telecom is that the technological encroachment has dreadfully been all ears on communications. We all owe a thank to nineties for that. . . Lots of mechanical associates has seen the coming in Telecom and made huge amounts of mind investment to the business. Today, we are compulsory to live in an overly competitive business where telecom is affected to be cheaper everyday. To make matters worse, a ballet company called Skype appeared. This comprehensive P2P Telephony Business certain to make old fashioned classification of telecom a commodity because of its software, which allows you to make free calls over the Internet. Other emerging companies like Net2Phone and 8x8 also flocked customers to make cheaper (sometimes free) calls.
Some conventional telecom companies have kept an awry eye on those start-ups while adopting technologies like VoIP. They as a rule attention those new technologies are amazing to keep an eye on and investigate. In other words, they are disruptive. Some unsaid the jeopardy and ongoing firing QoS bullet, as those startups do not give top-notch advantage like incumbents do.
The fact of the be of importance is, none of those commerce plans will hold true ought to they are based on assembly money on calls. Like Michael Powell said, "I knew it was over when I downloaded Skype. . . "
So, can we say that telecom is a commodity?
My come back with would be no, if complex providers agree to to alter their musty mindset. Three belongings are central if the full circumstances of this new notion is to be understood. First is, telecoms exist to afford infrastructure. The rest needs to be handled by networking and computing companies.
The need for voice, video and data are going hand in hand. There is no value in them when there is no Internet. That's why, the agree with is, the new affair plan be supposed to be based on the Internet access. If telecoms want to survive, charging customers packet-based with the agreement of admirable QoS is the only way to go. MPLS is their data to make this happen.
This way, optimization, the chief alarm of telecom industry, can be solved as the carton usage can be approximated. Demoting VoIP into an concentration to where it first is can be achievable in packet-based model. This new model will also disapprove fighting alongside free-of-charge models and bring a fresh breath to complex providers to create more revenue.
Third is, not only the capacity of optimization but also the prioritization and confidence of the traffic, if needed, will let complex providers to put extra cash to their pockets. The money after the comfort will not be their ball game.
Some may argue that there is no incremental cost of extra usage of packets to a arrangement so the value at the back tracking the travel is nonsense. However, what is unseen is that it military exchange ideas providers to upgrade their systems quicker. They can also build their cost /profit build up easier.
Perils to the model would be the evolution span of MPLS and anti-spam systems. MPLS, as an immature technology, is welcomed with high expectations. Addressing all needs in such a short age of time needs a lot of investment. The story is more or less the same for anti-spam solutions too. No consumer would like to pay extra for spam as this is accumulation to the transfer that a user is using. That would force association providers to unify on an MPLS/ anti-spam model where they and their customers can rely on.
Once this new role of incumbents is well understood with solid technology, then converting the so-called danger of telecom commoditization into an break is feasible.
Burak Fenercioglu is a self-employed author and running for a mainframe complex collateral business for over 4 years. His articles are about new ideas, innovation and line of attack all of which can be found at http://burakfenerci. blogspot. com
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