Convergence is a powerful force that will forever change the face of telecommunications - and with the Convergence Bill set to become the Electronic Communications Act (ECA), South African businesses and consumers can expect accelerated introduction of the benefits associated with the convergence concept.
Andy Brauer, chief technology officer at Business Connexion, notes that while the country now has the parliamentary vote on the ICASA Amendment Bill (which was accepted in parliament with the exception of three sections) and an actual date for the of promulgation of the Electronic Communications Act is now awaited, the wide-ranging effects of convergence are already reaching the market.
He explains that convergence is not a new subject. "The essential concept of convergence was to combine voice and data technologies by using Internet Protocol [IP] as the common standard. That gives organisations the ability to combine previously separate network infrastructure."
While the concept is simple, the implications are enormously far-reaching. Practically overnight, voice revenues - the staple income for telecommunications giants around the world - came under serious threat.
Brauer comments: "Telecommunications operators all over the world were painfully aware that convergence spelled impending doom for their businesses unless they were able to change their business models."
Willem van Rensburg, Business Connexion`s group executive: strategic solutions, explains that as a result of the implications of the simple concept of converging networks, telecommunications companies have undergone something of a forced evolution - without the luxury of time generally associated with the process.
"Around the world, the leading providers of telephone services have changed rapidly from their positions as voice communications companies, adopting instead a `total services provider` model. Examples can be found in British Telecom, France Telecom, Deutsche Telecom and AT&T, among others," he says.
But as convergence gains momentum, further profound effects are impacting the market. Notable, says Brauer, will be the imminent introduction of high definition TV and Internet TV - which he says can be expected in South Africa soon.
"These developments around television are affecting the global broadcast market and causing a fundamental blurring of the lines which previously demarcated the providers of certain services. Essentially, as convergence takes hold, the traditional business models of mobile telephone operators, Internet service providers and broadcasters are coming under threat," he explains.
Brauer also draws attention to the term `fixed mobile convergence`, which is breaking down the barriers between mobile phone operators and providers of `traditional` fixed-line network services. "This current now threatens to erode the `last mile` [connectivity to the home or business from an exchange] from the traditional telecommunications provider, putting such operators under even more pressure," he says.
Simultaneously, convergence is also impacting technology companies, continues Van Rensburg. "Threats are presented with the introduction of new licence models [for the provision of network services], declining margins and global competition from traditional and new companies [like search engine Google]. However, IT companies that offer a deep understanding of IP and aggregated service models [ie, the provision of many services over one network] are positioned to effectively and rapidly enter the new converged communications space. Voice over IP (VOIP) can easily be offered by traditional IT players, especially under the new Electronic Communication Act. If exploited by traditional IT players, this poses another threat to the traditional telecommunications company," he says.
As a result of these powerful forces - enabled by technology and now permitted by law - Brauer and Van Rensburg say IT companies, Internet service providers and telecommunications operators (and a combination of these) are under pressure to offer fully converged electronic bundled services to the end-user to ensure their ability to operate profitably.
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