Telecommunications operators and the transition to convergence and broadband
- Author: United Nations
- Main Title: Foreign Direct Investment in Latin America and the Caribbean 2010 , pp 131-168
- Publication Date: December 2011
- DOI: https://doi.org/10.18356/67a4cd49-en
- Language: English
The telecommunications industry stands now at a particularly complex juncture brought about by the extensive penetration of communications services, rapid pace of technological development, collapse of traditional barriers between communications services (fixed and mobile telephony, broadband access, Internet, pay television and broadcasting) and evolving consumer habits. As a result, current regulatory frameworks are becoming obsolete and the major operators must urgently adjust their business models and corporate strategies accordingly. And with traditional sources of revenue based on voice traffic dwindling, sector companies are under pressure to enter new business segments for handling data traffic. At the same time, old networks are increasingly overloaded by new applications that require greater bandwidth (especially video), making bandwidth saturation a genuine concern. Operators are responding by migrating to next generation networks based entirely on the Internet Protocol (IP). This presents the industry with a dual challenge: making the necessary investments in infrastructure to meet the new services’ technical requirements, while consolidating and boosting the demand for those new services in order to reverse the downtrend in revenues and ensure the sustainability of the new business models adopted.
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