Telcos need to switch focus

By Warwick Ashford, ITWeb London correspondent

Johannesburg, 18 May 2006

World Telecommunications Day, celebrated around the world on 17 May each year, is not only about the telecommunications industry, but should focus on what telecommunications can do for people in terms of development, says Autopage Cellular MD Stephen Blewett.

Similarly, Blewett believes telcos should not only focus on technology, but also on what the technology can deliver in terms of connectivity and value.

Blewett says this shift in focus is necessary to meet market demands for a single, cohesive communication service with a single billing system that bundles various channels to lower cost. This he foresees as a major trend in future telecommunications.

"Business and consumers are not only interested in the service that technology delivers, they also look for the best connectivity at the best price," he says.

Although the much anticipated triple-play bundling of voice, data and video services is not yet commercially available, Blewett says the market is moving rapidly in that direction through technological convergence.

Blewett envisages a future in which communication service providers have greater flexibility to structure packages that include the most appropriate and cost-effective fixed and mobile data and voice solutions according to customers` needs.

"Competition in telecoms will be all about offering the best choices within the various elements making up a communication package or being able to best meet customer needs within a fixed budget," he says.

According to Blewett, lower cost and improved quality of service are the biggest benefits of bundling communications services.

"Cost reductions are achieved through cross-subsidisation through larger volumes and improved quality of service and is a natural consequence of independent service providers being able to source the best services available to meet customer requirements," he explains.

Communication as a service also has the added benefit of freeing business and consumers from having to invest in any one technology, enabling them to benefit instead from a basket of technology on offer from service providers, he concludes.