Hi Frank -
Perhaps I could have used a different phrase, like "traditional incumbent revenue generation models".
In general, I'm referring to incumbent aversion to becoming a "bit-pipe", and longstanding efforts to stop incursion of IP into their revenues. Lately, I've been researching efforts on their part (such as syndication) where they've been attempting to ensure they get a healthy cut from traffic on their networks, especially mobile.
The effect of all-IP on incumbent revenues has been discussed on this thread for years, and has been discovered again by 3's Skype commentators.
"I have had long discussions with Professor Ed Candy, Technology Director of 3 on these three laws. I admire Ed’s views and in my view, Ed is one of the few people in the Telco space who has the vision to understand the true impact and revenue potential of the Internet.
A discussion of the three laws and their impact on the Telco space is a topic for another blog.
However, what we have to remember is: fixed rate pricing is only the beginning and not the end! In that sense, other operators can copy the fixed rate pricing model and be mistaken that they are being radical when they do so .. but many will cringe when they realise that fixed rate pricing was just the beginning. There is much more change to come."
opengardensblog.futuretext.com
"By far the smartest way would be to partner with existing phone companies to provide the last mile of connectivity to make an integrated Google play a reality. But why should the phone companies want to give away revenue to help Google? Maybe that explains the rumor mill in seeking to scare the telecom companies into a "if you can't beat 'em, join 'em" strategy. In the U.K., the fifth-largest mobile player, a company named 3, has teamed with Skype to do just this, accepting that a monthly flat fee and limited call revenue is the best way to go."
forbes.com
The bolded statement can also be applied to Sprint. Long before others (IMO) Sprint correctly read the writing on the wall. Theirs was the first US departure from traditional exclusionary tactics by incumbents.
Not to say there won't be revenues, but obviously, they'll be reduced, and as advocated by all on this thread, all-IP will make its first significant gains in a market where incumbents have long frustrated progress.
Apologies if my meaning wasn't clear. Have I answered your question?
Jim |
