Time to Redefine Telecom

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

In The News:

---

CNET (blog)
STEVE FORBES: To Boost the Economy, Obama Should Keep His Hands Off the Web
FOXNews
... of a pro-growth regulatory regime won't find any comfort in the president's apparent fondness for net neutrality regulation of the broadband Internet. ...
The Struggle for What We Already HaveNew York Times
FCC launches further inquiry on net neutralityLexology (registration)
FCC seeks comment on two key elements of Google-Verizon net neutrality proposalZDNet (blog)
The Atlantic (blog) -The Hill (blog) -Pittsburgh Post Gazette
all 486 news articles »

CBC.ca
CRTC takes firm stand against big telcos
Globe and Mail
For Mirko Bibic, Bell's senior vice-president of government and regulatory affairs, the fact the regulator is telling Bell to roll out broadband Internet ...
Canada telcos told to extend broadband servicesReuters
Bell to appeal CRTC Internet rulingOttawa Citizen
Telus, Bell must repay customers, CRTC rulesVancouver Sun
National Post (registration) (blog) -Wall Street Journal
all 495 news articles »

Google Goes To $717 On Surging Net Traffic
Forbes (blog)
Broadband internet access is becoming widely available as well and greater price competition by broadband providers will help spur even further internet ...

and more »

Reuters UK
Time Warner Cable/Disney reach agreement, ESPN3.com and ESPN 3D included
Dallas Morning News (blog)
Time Warner Cable has about two million subscribers in Texas (including both TV and broadband Internet service subscribers) and about 14 million nationwide. ...
Disney, Time Warner OK cable dealFayObserver.com
Time Warner Cable Deal Brings Disney Into `TV Everywhere' FoldAutomated Trader
Breaking: Disney, Time Warner Cable Cut Dealmediabistro.com (blog)
Hollywood Reporter -Wall Street Journal -MarketWatch (press release)
all 713 news articles »

PhoneDog (blog)
Clearwire Introduces Rover: Instant Gratification to the Internet Addicted
MarketWatch (press release)
Rover does not require a credit card to activate service and is designed to bring broadband internet to a new audience. The Rover brand is designed for a ...
Rover Pay-as-You-Go 4G Mobile Broadband by Day, Week, Month- 2 Days FreeWireless and Mobile News (blog)
Clearwire Launches 4G Prepaid Mobile Broadband ServiceEverything PR
Clearwire announces Rover Pay-As-You-Go 4G Mobile Broadband ServiceBest Syndication
Wall Street Journal -ConnectedPlanet (blog) -PC Magazine
all 248 news articles »

Columbia Business Times
BlueBird Media building “middle-mile” broadband network
Columbia Business Times
... received a $45 million federal grant last month to build a broadband Internet network spanning 59 northern Missouri counties. BlueBird has six months to ...

Coming Soon: High Speed Internet Connections For Skyline Members
Boone Mountain Times
Today, that same drive and determination for better ways of communicating has been carried into the modern information age by the way of broadband Internet ...

TechEye
Broadband advertising 'misleading consumers'
Telegraph.co.uk
Consumers are left baffled by internet service providers' use of "up to" speed claims when defining the kinds of broadband internet connection speeds people ...
Broadband ads confuse puntersInquirer
Broadband advertisers 'need to be upfront about speeds'Broadband Finder
Virgin Media Starts Campaign To Clarify Broadband SpeedsITProPortal
The Guardian -Cable.co.uk (blog) -Mirror.co.uk
all 68 news articles »

Mobile Broadband Now Distorts National Broadband Stats
TMCnet
... downstream definition of broadband. Among the 35 million mobile wireless subscribers whose subscriptions included a data plan for full Internet access, ...
We're trudging down the long road to universal 4Mbps broadbandArs Technica
Ripe FCC Data: Our Broadband Is Still Pretty SlowBroadbandReports.com
FCC: Consumers Continue to Receive Slow Internet ConnectionsBroadbandBreakfast.com
Datamation -Nextgov -ConnectedPlanet (blog)
all 14 news articles »

St. Paul gets top ranking for speedy Internet
Minneapolis Star Tribune
Ookla does its surveys of broadband speed in an unusual way. Rather than contact Internet users, it relies on the results from two free websites ...

and more »

Google News

__________

Broadband - Will it Affect Your Online Marketing Future?

The coming age of general Broadband use bearing down upon us, minute by minute, is going to leave many changes in its wake. Some will be welcome;... Read More

A Cheap Alternative To Broadband?

Are you a dial-up user looking for a faster connection, but don't like Broadband prices? If so, you should take a look at a new service called... Read More

Ka Band -Affordable Satellite Internet On The Way!

Ka Band VSAT* satellite internet technology has enormous possibilities for telecommuters, rural locations and eventually for Motor Home users around the U.S. - if it works! Ka... Read More

DSL Internet is a Simple and Easy Way to Get Fast Internet Service

DSL ? which stands for Digital Subscriber Line ? is a great way to get high-speed internet service, without having to get a cable modem, or live... Read More

The Coming Television Revolution

The revolution is just getting started and will be begin to make its mark this year. By 2010, it will begin to take off. By 2025, it... Read More

Wi-Fi Hotspot Security

You've set up your Boingo account, you're hanging out at the Home Turf sports bar in LAX and you figure you'll do a little business or check... Read More

Broadband is State-of-the-Art Internet Access: How Can a Broadband Cable Benefit You?

We are now well ensconced in a time when the Web is riddled with graphics, animations, sounds, and videos, bringing about a necessity for superior internet access... Read More

Remotely Connecting by Satellite To the Hospital - 2005

Hospital's and the Medical Professionals associated with them across America have discovered during the last few years that a great deal of efficiency can be accomplished by... Read More

Time to Redefine Telecom

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... Read More

What are Your Internet Connection Solutions?

Of primary concern to all internet users is their actual connection to the internet.A user needs to look at all the factors and weigh the benefits and... Read More

3 Tips to Fix Unreliable Wireless Connections

Generally speaking, wireless computer connections are reliable. However, nothing is perfect, and sometimes you may lose your connection or experience a weak signal. There are many factors... Read More

Why You Should Switch To A Fast Internet Connection

With high-speed Internet access becoming available in more and more areas, perhaps it is now available in your neck of the woods. If it is, you might... Read More

Business Satellite Internet Products Compared - 2005

There are a number of options available for Business Class Satellite Internet connectivity in the U.S. today. New offerings seem to launch every week in 2005 and... Read More

Google Brings Millions of Hard-to-Find Library Books to Your Fingertips

Millions of hard-to-find books from five major libraries will soon be a lot easier to access: Google has made plans to scan and digitize them, making the... Read More

Wifi Hotspot Locations for Sale..is that a Good Thing?

Recent companies have been advertising wifi hotspot locations that are 'turnkey' (they can run themselves), and only cost between $13,000 and $20,000 to start. Is that good?First... Read More

Understanding Broadband - Are You Ready To Upgrade?

Are you ready to upgrade your residential service to DSL or business service to real broadband or T1? Well, the answer lies in what you need. Before... Read More

Long Arm of the Law Reaches New Internet (RIAA, Internet-2, i2hub Lawsuit)

Have you heard of the new Internet? It's called Internet 2 and this time they're not fooling around. The Abilene Network , begun in 1999 provides the... Read More

Wireless Technologies in Mass Transit for Convenience and Safety

Modern Mass Transit is making it easier for commuters, especially with the latest inter connecting wireless technologies. Many buses, commuter trains, shuttles and even trolley cars now... Read More

Dreams Come True With The Help Of Global Consciousness On The Internet

Dreams. There are two types of dreams: 1. When you are sleeping there are stories unfolding in your mind from a parallel dimension. 2. The aims one... Read More

Finger Protocol - TCP-IP Suite

The "finger" protocol is used to return information on users on a specific host. Information that can be gained by using the finger is to see if... Read More

Whois Protocol - TCP-IP Suite

The Whois protocol is an information service not unlike the finger service. The Whois protocol provides the client or user with information about the owner of a... Read More

ICMP Protocol - Internet Control Message Protocol

The Internet Control Message Protocol communicates errors messages between systems that require attention. This error is not usually at the user level, the error is handled by... Read More

Some DSL Broadband Definitions

Often too many people get confused with all the definitions, here we have explained in easy to understand terms.ADSL: Asymmetric Digital Subscriber Line - asymmetric meaning it's... Read More

Compare Cable vs. DSL

Okay, so you are finally tired of those slow dial-up internet connections, and you want to go broadband. Good deal. But first, you may be wondering which... Read More

Internet Service Providers

Internet Service Provider or ISP is a company that provides access to the Internet.Before choosing an ISP, it is important to assess your company's business and marketing... Read More