Two Key Telecoms Battles Are Underway, According to New Shosteck Group Study

Thursday 10 June 2004 10:03 CET | News

Two key battles are being fought in todays telecoms world - for access to subscribers inside and outside of the building for voice and non-voice services.
Voice over IP will set the wired and wireless worlds on a collision course while at the same time providing opportunities for operators and vendors, according to a new comprehensive study published by The Shosteck Group entitled, "WIRED AND WIRELESS NETWORKS: TWO WORLDS COMING TOGETHER." The first key battle is the "battle of the building." As mobile voice services have fallen in price and improved in coverage and quality, a trend of fixed to mobile substitution has favored mobile operators. This has enabled mobile operators to "steal" traffic that would have otherwise been carried over fixed networks. The "battle of the bundle" is a second key battle for operators. Todays focus of cellular operators is on the rollout of 3G networks and on the development and marketing of multimedia services. However, these plans are under threat. Networks which can deliver most cost-efficiently with differentiated IP services, will determine the winners. This is creating opportunities, and challenges, for established and emerging vendors and operators alike. "WIRED AND WIRELESS NETWORKS: TWO WORLDS COMING TOGETHER" analyzes the nature and extent of convergence over the next 5-6 years and why it will happen. It demonstrates the potential influence of new technologies, regulation, and market behavior. It discusses plausible disruptive events and their effects on convergence. It analyzes the implications for licensed and unlicensed wireless operators, wired operators (including cable TV and DSL), and their consumer and business customers. Telecoms providers are fighting for ownership of customers. But cellular operators and technologies are not operating in a vacuum. The study analyzes alternative technology approaches which are being provided by such companies as Flarion (FDD, mobile broadband) and IP Wireless, and Navini and Arraycomm (TDD, portable broadband). The impact of these alternative technology solutions may be greater than is commonly assumed. The real battle will be over voice services. UMTS operators are rolling out networks which can deliver "cheaper mobile voice." Wired and broadband providers are offering free or very cheap VoIP services today. Mobile and alternative wireless providers are beginning to offer VoIP through early Push- to-Talk (PTT) and trials of VoIP. "WIRED AND WIRELESS NETWORKS: TWO WORLDS COMING TOGETHER" provides a framework upon which companies may make profit-driven decisions. To illustrate the possible outcomes of these profound changes, the study presents three very different, yet equally plausible, scenarios for convergence: * Scenario 1 - Status Quo: Fixed and mobile operators stick to their knitting * Scenario 2 - Mobile Broadband Wins: Mobile operators gain traffic and revenues at the expense of fixed operators * Scenario 3 - Portable Broadband Wins: Fixed operators gain traffic and revenues at the expense of mobile operators Key sections of the study analyze and model the underlying market dynamics. They identify the key drivers, enablers and barriers to convergence. The study further analyzes the technologies that will influence the nature and speed of convergence, and evaluates their importance in influencing operator and vendor strategies. These include conventional cellular technologies, proprietary FDD and TDD broadband wireless technologies, 802.11 (Wi-Fi), 802.16 (Wi-Max), broadcast technologies, cable and DSL. The study explores the role that regulation and industrial policy will have in enabling, or possibly hindering, convergence. It examines how they will influence the nature and timing of convergence in different geographical markets. Final sections consider the importance of societal trends and consumer behavior in influencing convergence. These sections also examine the strategic implication

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Categories: Payments & Commerce | Mobile Payments
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Payments & Commerce


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