Telco’s Load Up for VoIP Battle Ahead

According to Deloitte, recent debate in regards to telecommunication operators charging internet companies to distribute their content over the Internet should not come as a surprise.

Jolyon Barker, head of technology, media and telecommunications at Deloitte comments: “Convergence across the technology, media and telecoms sectors brings with it the threat that operators, particularly fixed operators, will struggle to get their full share of convergence revenues. Connectivity, particularly broadband, is forming the basis for a growing number of converged services. Emerging applications, such as VoIP and video security systems, as well as maturing applications such as e-commerce and online music, are likely to continue to rely on broadband connectivity.

“Yet unlike other companies, at the moment broadband providers do not accrue additional revenues as these services are used. Record companies are paid for every legal song download; e-commerce companies generate revenues from every transaction; security companies charge a service fee for broadband-based video monitoring systems; media companies generate fees with every web search.

“Unless operators establish a means of generating greater revenues from the broadband services they provide, it is possible that telecommunications companies will be convergence losers: playing a fundamental role in the delivery of convergent services, and investing tens of billions of dollars implementing next generation networks that will be the bedrock for additional convergent services; yet arguably not extracting their due toll. News that they’re considering charging fees on internet companies shows that operators are seeking out new ways to generate value from their investment in next generation networks.”