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September 14, 2004
Convergence Isn't Pretty
Posted by John Yunker
The convergence of communications technologies is often portrayed as a wonderful thing for consumers. In many respects it is; the bundling of services often results in cheaper individual services and fewer bills in the mail. For example, I now pay for cable TV, voice and Internet access with one bill. But from the service provider's point of view, convergence can be downright messy; we now have cable companies selling voice services, phone companies selling media content, and wireless carriers headed into the fixed wireless (DSL substitution) market.
This recent article in The Wall Street Journal hits on the many of the major issues. Here's an article excerpt:
Over the past four years, the nation's largest phone companies have lost local phone lines by the millions as consumers fled to cellphones and e-mail. Many customers are giving up their second, and even their primary, phone lines. The intrusion by cable companies only made things worse, forcing the Bells to expand into other areas that promise more growth, such as wireless, high-speed Internet and television.
Covergence may not be pretty, but it sure does make the telecommunications industry exciting once again. These carriers have no choice but be creative and aggressive or they will be left behind; this will result in better prices for consumers and more creative services. Convergence isn't always pretty because creativity isn't always pretty.
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| Category: Big Picture | Cellular | VoIP | Wi-Fi | WiMAX & Fixed Wireless
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