What's in a network? Everything!
Contributed
by Richard Mishra, Telecom Strategy and Standards, Amdocs OSS.
There is a
place where the road network is built by a private business, who charge a fixed
monthly fee for anyone to use the roads, as well as operating a hire car
service on a pay for-as-you-go basis. It is a reliable system and was
originally designed so that people could visit each other. However, the company
noticed that people were more and more going to large shopping malls and
spending a lot more money there than they did with themselves. Even worse, the
mall operators started providing a courtesy bus service, so the shoppers didn’t
even have to pay the car hire charge. Everyone was still paying the road usage
fees, but that was relatively small money. They came to the conclusion that
they would get out of the road business and instead build shopping malls with
media complexes.
This story
may not be true, but it's no fantasy either. This is what people in our
industry mean when they talk about getting into the content and media business
and offloading their networks. Is this Telco2.0? Here is an observation as
obvious as it is ignored. Nothing works without a network. Nothing works well
without a good network. Google does not get customers unless the operators
deliver them, even if it means turning into an operator itself. The one given
in our industry is the networked IT resource. If the traditional Service Providers can't
operate it, then someone else will have to; and whoever does will need to do it
profitably, or as a nationally owned utility. But everything else is up for
grabs.
This is the
real Telco2.0 challenge. Service Providers who now have tens of millions of
customers, may choose to have only a few thousand, who are themselves Service Providers. The
basic service will not go away, but it will
be overtaken by communication services that need only low quality data networks.
Broadcast entertainment and particularly video services will require high
quality, well managed network resources. And every adult consumer needs privacy
and security. There is differentiation in the network; there will be the need
to pay for quality. Most consumers will be dependent on a network of Service
Providers to deliver their communications
and content to wherever they are, on whatever device they have and at a
justifiable price. This will include resellers, mobile and fixed operators,
internet and content providers and device manufacturers. This is the new
business model and every aspect of management in this model, from resource to
Customer Experience, becomes even more sophisticated and demanding than it ever
has been. In short, the term 'best efforts' will be a deliberate and targeted
service quality option, not a way to run the business.