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Trends in Communications & Computing Convergence. Joseph J. Bonocore President & CEO Bonocore Technology Partners, LLC. Introduction Common Speaking Topics. Presentation Overview. Introduction Changing Concepts Definition of the Industry Communications Services Value Chain
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Trends in Communications & Computing Convergence Joseph J. Bonocore President & CEO Bonocore Technology Partners, LLC Stanford University: Progress in Worldwide Telecommunications
IntroductionCommon Speaking Topics Stanford University: Progress in Worldwide Telecommunications
Presentation Overview • Introduction • Changing Concepts • Definition of the Industry • Communications Services Value Chain • Definition of Customer Managed • Selected Trends in the Industry • Communications Industry Phases of Evolution • Thoughts on the Future Stanford University: Progress in Worldwide Telecommunications
ConceptsThe New Definition of the Industry Stanford University: Progress in Worldwide Telecommunications
ConceptsIndustry “Services Value Chain” Stanford University: Progress in Worldwide Telecommunications
ConceptsCustomer Managed Stanford University: Progress in Worldwide Telecommunications
Trends • Technology • Nationalization/Globalization Carriers • Industry Restructuring • Regulation/de-Regulation • Customer needs • Competition Stanford University: Progress in Worldwide Telecommunications
Technology Revolution Stanford University: Progress in Worldwide Telecommunications
TechnologyMultiple Delivery Platforms • SBC and Verizon in offering TV services. • Comcast & other cable providers offering telephone service • Wireless companies offering data services. Stanford University: Progress in Worldwide Telecommunications
Nationalization/Globalization • Mergers/Acquisitions • SBC/AT&T • national/international network • IP platform • presence in the enterprise marketplace. • Verizon/MCI • National/international network • IP products and services • Presence in the enterprise marketplace Stanford University: Progress in Worldwide Telecommunications
Nationalization/Globalization • Sprint/Nextel • Survival • Gives them bulk for a Cable market strategy • MVNO strategy • Power to roll out Wi-Max (competitor to DSL and Cable Broadband) by 2007? Stanford University: Progress in Worldwide Telecommunications
Regulation/De-Regulation • Contradictions between local, state, and federal regulations. • Contradictions between types of distributions channels (TV, internet, cable) • Privacy • Universal access. Stanford University: Progress in Worldwide Telecommunications
Customer Needs Stanford University: Progress in Worldwide Telecommunications
ConceptsIndustry “Services Value Chain” Stanford University: Progress in Worldwide Telecommunications
Customer Needs Stanford University: Progress in Worldwide Telecommunications
Industry Restructuring Issues • VoIP/broadband/satellite/wireless replacing wireline service. • Transport services must be replaced with value added services to improve profitability. • Pricing: minutes to bundled pricing. • Voice revenue will go away or be significantly diminished and must be replaced. Stanford University: Progress in Worldwide Telecommunications
Competitors Actions • VoIP Introduction into Telco Marketplace (pricing & timing of introduction) • Service bundling concepts • Cable companies with make vs. buy on MVNO. • SBC vs. Verizon on approach to offering broadband services in their markets Stanford University: Progress in Worldwide Telecommunications
Communications Industry Phases of Evolution Stanford University: Progress in Worldwide Telecommunications
Communications Industry Phases of Evolution Pred: Industry segment will disappear. Winners will emerge as broadband players Pred: may be better positioned in the consumer market then the telcos. look for technology to cause integration to happen more alliances and closer relationships to come as the technology grows. Services will expand and grow as the technology matures. Stanford University: Progress in Worldwide Telecommunications
Thoughts on The Future • Continued Consolidation in most sectors on the industry: • Survivors will be the ones who pick: • Right technologies • Right business models/sales approach/customer managed • Right customer segments/services/applications • Market Segmented Carriers???? Stanford University: Progress in Worldwide Telecommunications