Posts Tagged ‘business model’
Australia: AIIA has welcomed the Govt. road map for the development of its digital economy
“The Australian Information Industry Association applauds the focus and intentions of the paper, which is very timely,” said AIIA CEO Ian Birks. “This paper, which has been developed in close consultation with the ICT industry, shows that we are headed in the right direction. It has outlined the foundations that are being laid for the success of Australia’s digital future.”
Some of the key attributes in the paper that the AIIA supports are:
The acknowledgement that the National Broadband Network will support and drive the development of vital elements of a future digital economy. This includes value added services and a content-rich environment that drives new consumer behaviours, enhanced community connections, competitive business models and open, consultative government.
Identifying the government, community and industry as primary stakeholders who will need to work closely together to create a successful digital economy. The AIIA believes the ICT industry itself needs to be engaged as a critical stakeholder to drive a deeper understanding of the possibilities offered by the digital economy within government, industry and the wider community.
Developing a common understanding of what success will look like as Australia plans for the development of a digital economy.
Birks added, “The digital economy has the potential to transform Australia’s economy. The ICT sector is ready and willing to work with the Government in whatever ways it can to deliver this transformation by creating the awareness, understanding and ultimately, the adoption of the right technologies and processes.”
“For the next steps, the AIIA will work closely with the government to develop related policy measures, clear goals and metrics that are attached to the outcomes in the Future Directions paper.”
The Australian Information Industry Association responds to Australia’s Digital Economy: Future Directions
see also Australia’s Digital Economy: Future Directions
Broadband in the Andes: Community initiatives as alternatives to business models
APC presents five reports that examine the issues surrounding broadband and telecommunications reform in the Andean region from different angles, as an introduction that offers elements of context and analysis from a more general perspective.
Researcher Orlando Arratia points out that in Bolivia, 4% of the population has access to the internet. Even if the new constitution introduces the principle of the universalising the basic services including telecommunications, it is still not clear how these proposals and advances will be materialised in a continually changing environment that faces serious political, technical and economic challenges.
In Colombia, the policy of opening public ICT access centres presents an opportunity to expand access to broadband infrastructure, as observed by researchers Olga Paz, Mauricio Escobar and Paula Ospina. The researchers stress that there are serious gaps in the integration of rural and marginal urban areas in telecommunications networks as a tool for economic and social development. They conclude that public policies should address aspects such as promoting broadband service in low-income areas, reducing the costs of infrastructure investment and operation, taking advantage of technological convergence to reach isolated sectors, and increasing demand through training in the use of ICTs for development objectives.
Ecuador is one of the countries with the lowest broadband internet penetration rates in the region, a mere 2.7%, notes researcher María Eugenia Hidalgo. This, she says, is the legacy of a failed privatisation process in the telecommunications sector and the subsequent adoption of legal reforms that handed the most profitable segment of the market (mobile telephony) to the transnational private sector. Hidalgo points out that the emergence of wireless technologies, especially Wi-Fi, offers an alternative for internet access in areas that are unprofitable by market standards and lack infrastructure. She stresses that strong state involvement in the provision of services and infrastructure should create a favourable environment for implementing the concept of universal access.
In Peru the issue of broadband is approached from a net neutrality perspective. Currently there are two opposing viewpoints: those who want the internet to remain open and unfiltered and those who propose the use of network management systems in the name of making more efficient use of the network. Researcher Jorge Bossio concludes by emphasising the need for a wide-reaching debate in order to prevent, on the one hand, de facto practices that violate consumers’ rights, and on the other, vertical and hastily adopted legislation that could result in disincentives to investment, higher prices for services and deterioration in the quality of service. At the heart of this conflict are two opposing models of development, one based on the market and the other on the administration of public goods.
In Venezuela both the quality and cost of communications services, especially broadband, are affected by the fact that most internet traffic must travel outside the region before returning back to the region, observes researcher Ysabel Briseño. She analyses why Venezuela still has not succeeded in implementing plans for the creation of a Network Access Point (NAP) to address this problem. Briceño concludes by asking whether rapid changes in technology are generating other solutions for the problems that the creation of a NAP was initially meant to remedy. Finally, she highlights the potential influence of the nature of interrelations and negotiations between the State and society in Venezuela on the decisions that are ultimately adopted.
Broadband in the Andes: Alternatives to the free-market model
see also introductory report and
Bolivia,
Colombia,
Ecuador,
Peru and
Venezuela
Mobile: Google Voice is to be available on mobile phones with Android or Blackberry handsets
The mobile version is currently only available for Android OS phones or Blackberrys, and you need to already have be one of its invitation-only beta users. That’s expected to change shortly when the service, built around its acquisition of a company called GrandCentral, opens to all.
When that comes, one would also expect an app for Windows Mobile phones and the iPhone. Google Voice comes with a panoply of features that no wireless carrier comes close to matching. Think of being able to program your phone to automatically shunt calls from your landlord to voice mail, but send calls from your spouse immediately to ring to all of your phones.
But really the mobile app is about two things: extending Google’s reach so that more of its users’ lives runs through Google’s all-seeing code where they can be served ads. And secondly, it’s a jab at the wireless carriers, which have long acted as if their subscribers belonged to them, charging entrance fees for outsiders to offer services to them.
Now Google has made a better phone service than any offering you can get from a traditional telecom. That’s an attempt to turn wireless carriers into dumb data pipes, since all a user now needs to get control over their voicemail, messages and phone number is install an application.
Telecoms will hate this product. It will cost them millions to duplicate its basic features, which they will have to do to compete.
Of course, if the phone companies had sat down five years ago and thought about what they could do to make phone service better, rather than more profitable, then companies like Google and Apple wouldn’t be so successful at demolishing their business models.
France: Competition Authority warns France Telecom on limits of exclusivitiy deals on content may are limited by competition law
Orange has invested heavily in premium television series, films and League 1 soccer matches but the regulator recommended that it gave access to its content to a wider pool of customers than just its own existing broadband subscribers.
The watchdog said the telecoms operator, part of France Telecom (FTE.PA), should distribute its TV content to users of other platforms after an initial period of one to two years, threatening its closed-circuit business model.
In May, Orange won a court appeal that gave it the right to sell subscriptions to its Orange Sport channel only to its triple play subscribers – getting television, high-speed Internet and telephony services.
Pay-TV group Canal Plus and telecoms group SFR, part of Vivendi (VIV.PA), have attacked the exclusive nature of Orange’s television broadband offers.
Telco 2.0: Looking beyond quadplay to enable daily social and business activities
This development has two main trends. According to Yiru Zhong, Frost & Sullivan Industry Analyst: “Service providers are keen to be relevant to their target customers by offering connectivity, entertainment and information services. The second main force is the shift toward a digitalised society in which end users increasingly conduct their lives in a digitally connected world.”
Those twin factors set the scene for growth momentum in current economic conditions. Business models must adapt to remain relevant to end users in a convergent industry where success is largely measured by the scale of customers and/or networks. In an increasingly digitalised society, ubiquitous connectivity for daily social and business activities is both expected and demanded.
According to Frost & Sullivan’s 2008 study, the revenues accruing to telecoms and pay TV service providers will reach around euro 208 billion at the end of 2008. By 2013, the revenue will reach euro 225 billion, driven by higher penetration of broadband connectivity and additional services such as TV/digital media and potentially connected home services.
Convergent industries rely on beneficial partnerships with key players in adjacent industries to ensure sustainable growth. Variants of such alliances can be observed as service providers address their distribution channels, content acquisition and cross-platform sales opportunities.
Orange is a good example of the benefits stemming from alliances. Through Orange TV, France Telecom has deepened end users’ TV and media consumption habits. The company has also maximized various end user touch points through Orange TV’s multiplatform strategy and with plans to inject greater end user interactivity through this Orange TV platform. By securing customer loyalty and enabling customers to interact freely with company content and within provided social groupings, France Telecom has strategically placed itself to monetize the relationship necessary to generate a third party revenue stream.
Successful transformation relies on tools that enable collaboration to effectively offer services that end users need and are willing to purchase. According to Frost & Sullivan, approximately euro 13.5 billion is being allocated toward investments in networks, platforms, systems and development in Europe.
The gradual but accelerating adoption of open standards, coupled with the desperate need of service providers to secure a sustainable revenue source from the existing end user market, means that life beyond Quad Play will require significantly more alliances to optimise resources and to start shaping the way the eco-system should collaborate in a connected home environment.
“We have only just witnessed one of the first few concrete steps toward pushing for a connected home reality – the leadership from telecoms from the point of view of network investments and service broadening is an important catalyst to kickstart the journey beyond Quad Play scenarios,” adds Yiru Zhong.
Opportunities Beyond Quad Play Depend on Successful Cross Industry Alliances, Says Frost & Sullivan

