Telecommunications companies may have to start investing in content as convergence erodes their traditional business models, says communications minister Siphiwe Nyanda.
Speaking at the 2009 Southern Africa Telecommunication Networks and Applications Conference (Satnac), in Swaziland, this week, Nyanda said network operators needed to assess and redesign their services.
“Convergence is the most powerful driving force today. It is changing the way business is done. Traditional operators' ways of providing services are being challenged. The boundaries are becoming increasingly blurred and irrelevant,” he noted.
Nyanda said mobile and fixed operators could no longer afford to provide different, but isolated, solutions. Consumer demands and the need for accelerated development mean content services must grow, and operators can no longer afford to only run networks and ignore content demands, he stated.
“Globally, the quest for triple-play services has increased. The phenomenon of demand for voice, video, data and mobility continues to grow, and today there is a need for everything over IP. There are evidential benefits of convergence and it clear that it [convergence] is here to stay.”
He added that the demands of local consumers would also put increased pressure on both network operators and service providers. New business models, based on content services, should be created, Nyanda said.
Real convergence
Nyanda called for increased development and innovation by operators, saying it could lead to the rapid growth and adoption of converged solutions. Restrictions caused by the lack of telecoms infrastructure could also be addressed as IP networks become key, he said.
The minister acknowledged that changes need to be made by government and business to keep up with the demands of consumers and new technologies. While the changes which converged solutions introduced are welcome, there are also challenges which government and business are required to address, he added.
“The rise of VOIP has only given us a sneak preview of real convergence. The impact and reach of convergence can be widespread. But all these advances have brought new challenges. There needs to be standardisation across industries and technologies, and cyber security has also become a big concern.”
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