Thursday, March 8, 2007

How to make money in an IP-based World?

The vertically integrated telco business model is under attack. How should they make money in the converged world?

The Telco 2.0 Manifesto by STL provides a great overview of this trend:

"Our belief is that there is a single dominant source of structural change in the communications industry. This trend is the separation of network connectivity from user-facing application services and content. The phenomenon is both technical (“everything over IP”) as well as financial (separate purchase of access and service).

The trend is clear and obvious. Changes to mass user behaviour are already seen (eg. VOIP, P2P music/video downloads, Social Media). Yet few (if any) operators have strategies that can be explicitly traced back to this underlying force."

Check out the Telco 2.0 Blog for the most interesting Telco 2.0 "Business Model Map".

"We think the biggest opportunity [to make money] lies ... where the apps are less tied into the network — but the billing and value-based pricing remain in place."

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