Telecommunication, according to Wikipedia, is the extension of communication over a distance. In practice, it also recognizes that something may be lost in the process; hence the term 'telecommunication' covers all forms of distance and/or conversion of the original communications, including radio, telegraphy, television, telephony, data communication and computer networking.
While defining telecom gets more and more difficult, the profit and ethics behind the business keep on diminishing. SBC spent $16B to a company whose revenue stream is declining more than 10% year over year. Verizon bought MCI, and in order to make deal lucrative, they say they will layoff over 7,000 people.
The reason for scaling-down in telecom is that the technological advancement has terribly been focused on communications. We all owe a thank to nineties for that... Lots of technical people has seen the future in Telecom and made huge amounts of mind investment to the business. Today, we are forced to live in an overly competitive industry where telecom is forced to be cheaper everyday. To make matters worse, a company called Skype appeared. This global P2P Telephony Company decided to make old fashioned definition of telecom a commodity through 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 traditional telecom companies have kept an awry eye on those start-ups while adopting technologies like VoIP. They mostly thought those new technologies are something to monitor and investigate. In other words, they are disruptive. Some assumed the danger and started firing QoS bullet, as those startups do not provide top-notch service like incumbents do.
The fact of the matter is, none of those business plans will hold true should they are based on making 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 answer would be no, if network providers accept to change their musty mindset. Three things are important if the full background of this new notion is to be understood. First is, telecoms exist to provide 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 second is, the new business plan should be based on the Internet access. If telecoms want to survive, charging customers packet-based with the guarantee of excellent QoS is the only way to go. MPLS is their material to make this happen.
This way, optimization, the biggest concern of telecom industry, can be solved as the packet usage can be approximated. Demoting VoIP into an application to where it originally is can be doable in packet-based model. This new model will also disallow fighting against free-of-charge models and bring a fresh breath to network providers to generate more revenue.
Third is, not only the ability of optimization but also the prioritization and security of the traffic, if needed, will let network providers to put extra cash to their pockets. The money behind the content will not be their ball game.
Some may argue that there is no incremental cost of extra usage of packets to a network so the value behind tracking the traffic is nonsense. However, what is unseen is that it forces network providers to upgrade their systems quicker. They can also build their cost /profit structure 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 period of time needs a lot of investment. The story is almost the same for anti-spam solutions too. No customer would like to pay extra for spam as this is adding to the traffic that a user is using. That would force network 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 assumed with solid technology, then converting the so-called threat of telecom commoditization into an opportunity is feasible.
Burak Fenercioglu is a freelance writer and working for a computer network security company for over 4 years. His articles are about new ideas, innovation and strategy all of which can be found at http://burakfenerci.blogspot.com
Ebooks, Scripts & more One of the most controversial topics surrounding web hosting is... Read More Back in 1999 when we beta tested the first wireless... Read More Ka Band VSAT* satellite internet technology has enormous possibilities for... Read More Securing your Windows Xp computer is done by achieving two... Read More Telecommunication, according to Wikipedia, is the extension of communication over... Read More Of primary concern to all internet users is their actual... Read More Well, the Internet access industry is starting to shake its... Read More One of the common problems among internet users is testing... Read More Millions of hard-to-find books from five major libraries will soon... Read More Defining broadband can get complicatedThere are many different takes on... Read More Have you heard of the new Internet? It's called Internet... Read More Generally speaking, wireless computer connections are reliable. However, nothing is... Read More Modern Mass Transit is making it easier for commuters, especially... Read More Thanks to the transfer technologies and governments spending on military... Read More You've set up your Boingo account, you're hanging out at... Read More Consumers understand that when there is more competition in... Read More Are you a dial-up user looking for a faster connection,... Read More Approximately 4 million people in the UK use ADSL with... Read More Internet service providers are becoming more and more present as... Read More Get ready because "there's going to be television out the... Read More Wanadoo 17.99 pounds 1 mbps service getting good reviews.Want a... Read More Dial up ISP service is the cheapest choice of any... Read More The wireless network in my house went haywire. It worked... Read More We were the first beta testers of a Mobile Command... Read More Recent companies have been advertising wifi hotspot locations that are... Read More
Profit from Articles
Free Advertising
Unlimited Bandwidth and Overselling
Beta Testing First Mobile Internet Satellite Broadband, Part III
Ka Band -Affordable Satellite Internet On The Way!
How to Secure your DSl / Cable Internet Connection Against Malicious Attacks
Time to Redefine Telecom
What are Your Internet Connection Solutions?
How to Choose Best ISP for Your Needs
How to Troubleshoot Your Internet Connection for DSL or Cable Service
Google Brings Millions of Hard-to-Find Library Books to Your Fingertips
What is Broadband?
Long Arm of the Law Reaches New Internet (RIAA, Internet-2, i2hub Lawsuit)
3 Tips to Fix Unreliable Wireless Connections
Wireless Technologies in Mass Transit for Convenience and Safety
Broadband Satellite Antenna Pizza Box Size
Wi-Fi Hotspot Security
Two Enter Internet Battle
A Cheap Alternative To Broadband?
BT Broadband
Broadband Features
Its On! (Free Internet TV - Watch TV Online)
Wanadoo: 17.99 Pounds 1Mbps Service
Why Choose Dial Up ISP Services
Wireless Network Hammerin
Beta Testing First Mobile Internet Satellite Broadband, Part II
Wifi Hotspot Locations for Sale..is that a Good Thing?
Consumers understand that when there is more competition in... Read More
We are now well ensconced in a time when the... Read More
Defining broadband can get complicatedThere are many different takes on... Read More
Internet service providers are becoming more and more present as... Read More
Back in 1999 when we beta tested the first wireless... Read More
Internet Service Provider or ISP is a company that provides... Read More
For anyone trying to get the cheapest internet available, there... Read More
Okay, so you are finally tired of those slow dial-up... Read More
The Internet Control Message Protocol communicates errors messages between systems... Read More
Getting broadband services getting easy, but research still required.Broadband Internet... Read More
So you're sick and tired of AOL Instant Messenger. You're... Read More
One of the common problems among internet users is testing... Read More
Generally speaking, wireless computer connections are reliable. However, nothing is... Read More
SQUID:In 1984 I was partnered with a Cable TV engineer... Read More
There are a number of options available for Business Class... Read More
To find the best broadband provider for you takes some... Read More
Every Internet provider today wants to make it sound like... Read More
Dreams. There are two types of dreams: 1. When you... Read More
You've set up your Boingo account, you're hanging out at... Read More
Hospital's and the Medical Professionals associated with them across America... Read More
You may have noticed the expansion of consciousness that has... Read More
Get ready because "there's going to be television out the... Read More
Broadband is the name given to a high-speed Internet connection... Read More
Approximately 4 million people in the UK use ADSL with... Read More
Dial up ISP service is the cheapest choice of any... Read More
Broadband Internet |