While this model is customer based, it more or less defines the positioning of the providers of products and services, in relation to the user, and in relation to each other. However, the scope of regulation is all pervasive and can be thought of as impacting all the players-including the user-in this model. Also, the regulatory issues are much more complex, as it involves an objective that has also to include social needs, in contrast to the providers of services and products, who are driven by only commercial needs. So challenges and models of regulation have been consciously kept out of this model and are discussed separately.

The Issues
While no one can deny that convergence is happening today, there is a wide gap between the perception and reality regarding the nature, extent, and pace of convergence at different levels such as infrastructure, consumer devices, markets, and regulation. For example, while more of the talks revolve around accessing Internet from cellphone or through television sets, they are not a large-scale commercial reality anywhere in the world. But a less glamorous convergence like Intelligent Networks at the carrier infrastructure level or Internet over cable (not through TV, but through cable modem and PC) are realities.

This has primarily three reasons. One, the network has to be ready for offering new services and capability before the end user can access it through fancy consumer devices with new capabilities. Two, the service providers have traditionally been in one business (telecom, broadcasting, etc.) and they want to expand the scope of that business by diversifying to other services or offering newer services. Hence, they are adopting newer technologies for the purpose. Last but not the least, selling to the service providers is more focused and the selling cycle time is lower. For consumers, it requires a lot of marketing effort.

But it has one fallout. Since, it is the operators who are the ones taking the lead in investing on converged new technologies; the technology development is taking an evolutionary, rather than a revolutionary path. This is because the investment that has been made earlier has to be protected.
Interestingly, while there has been a spate of mergers and acquisitions of late, many believe (like the majority of respondents to the European Commission''''''''s Green Paper on Convergence) that while convergence at the technology and network infrastructure is happening, it does not necessarily mean that convergence of markets would follow automatically. Nevertheless, convergence acts as a catalyst.

Page(s)   1  2  3  4