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Communications & Networks

  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 resources.

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 consider:

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.

Strengthen cooperation 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 mindset.

For more information

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Unless otherwise specified, all information provided is sourced from CCID Consulting.


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