Network Convergence: A Double-Edged
Sword for China's Telecom Operators
June 24, 2008
The "Three Networks
Convergence" of wireless, wired and broadband poses both great opportunities
and challenges for China's telecom operators. CCID Consulting considers
networks convergence as China's new and inevitable information technology
revolution, enabling unprecedented distribution and sharing of information
The convergence vision will
drive telecom operators to provide high-speed mobility, broadband,
multi-media benefits to its users, and will be a powerful platform for
operators' business development. However, traditional telecom operators will
have put in significant effort in building the mindset, infrastructure, and
offerings to fulfill that vision.
There are three factors to
A new operational model.
China's telecom operators will have to adopt a new operational model as its
core strategy, in order to support convergence. New services will be
realized, like P2P, video phone, and other multimedia offerings. New
competitive patterns will emerge, with new user communities. Telecom
operators will have to deal with all these factors to stay competitive.
Learn from China's
Internet operators. Telecom operators will need to learn the lessons of
Internet operators, as the Internet will have a big, explosive component in
convergence. Telecom operators will need to understand the value chain that
is unique and developing for Internet operators, and understand the roles
and position of each player on the value chain.
with TV and Radio broadcasting. IPTV market development will be a strong
first step for China's telecom operators. Strong relationships and
partnerships with China's TV and Radio broadcasters will be keys to meeting
the new opportunities and challenges head on.
CCID Consulting believes
that China's telecom operators should realize the urgency of the changes
that are to come from convergence, the benefits that convergence offers, and
the impact and change on existing operations, business development and
For more information
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Unless otherwise specified,
all information provided is sourced from CCID Consulting.