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Technology Stocks : Vodafone Airtouch PLC
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To: MrGreenJeans who wrote (3)6/24/1999 7:56:00 AM
From: MrGreenJeans   of 5
 
Financial Times, June 24th

TELECOMS: Internet could benefit big groups
By Alan Cane

Traditional large telecommunications groups and mobile operators such as Deutsche Telekom, France Telecom and Vodafone/AirTouch are set to benefit from the growth of internet telephony, a new report says.

This runs counter to conventional wisdom which holds that the introduction of low-cost voice calls over the internet will cost traditional operators large sums in lost revenues and open the way for smaller groups to take control of the communications industry.

The report, a joint study by the London-based consultancy Schema and its US counterpart Technical Marketing of Largo, Florida, says that internet technology has improved to the point where voice and data can both be transported across a single network.

It says the convergence of intelligent networks, in which conventional operators are expert, mobile telecoms and internet telephony will lead to a new industry model - unified telecoms services - which will create business opportunities for service providers worth more than $10bn in Europe alone by 2005.

This is a small amount by the standards of the global telecoms industry but indicates the potential of the new services.

The report also says the changes will take place comparatively slowly: "It will take a considerable time to penetrate all networks due to user resistance and the need for major market players to follow a route that leverages their cur-rent network investment."

Schema said: "Originally seen as a threat to traditional operators, internet protocol telephony now represent a primary route for such operators to take advantage of these new opportunities."

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