Term Paper on "Alternative Technologies Influencing the Telecommunication Market"

Term Paper 4 pages (1716 words) Sources: 1+

[EXCERPT] . . . .

Alternative Technologies Influencing the Telecommunication Market

Several facets of public access to broadband networks are evident presently those are prone to continuing policy interactions. The question hovers around pricing, the terms of interconnection, vertical integration and infrastructure sharing in the interest of pubic. Presently it is evident that local telephone companies resort to the method of compensation to each other for the completion of the call that originates on the network of another carrier. Such system acknowledges the complex interconnected nature of the telephone network. The local carriers of the varied magnitudes spread over the varied regions. The local calls are defended by such inter-carrier payments irrespective of the fact that the caller customer is billed by the originating carrier. With the passage of time the variation in network tariff has been evident. This is the consequence of variations in the technology such as direct dialing, fax machines and internet as well as standard decline and restructuring of the telephone tariffs. (Internet Access: Economics & Policy) the META Group reveals that the withdrawal of inter-exchange carriers from the residential markets will entail considerable scope for enhancement of the short-term market share to the U.S. -based Incumbent Local Exchange Carriers - ILECs like Verizon, SBC, Bell south and Qwest. (ILECs Headed for Extinction, According to META Group)

Discussion:

The META Group reveals the trends of infrastructure strategies during 2005-06 are found to be quite radical. In the sphere of planning and architecture, it reveals that the Internet is predicted to become a larger part of the enterprise network influencing the remote accessibility and small offices, branch offices and data centers/disaster recovery. Within the coming two to three years the investments on new infrastructure have considerable returns supplementing the soft advantages enhancing the productivity and efficiency. The organizations will concentrate on centralization of network planning and architecture along with the vendor management. The concepts of security, convergence, and mobility are concentrated whereas the application awareness and optimization particularly XML/SOAP is anticipated to be the prime forces during 2007-09. The Service Providers Markets of United States have also indicates the positive trend. It is expected that the incumbent telecom operators will enhance the market share during 2005. However, the competition is expected to counterbalance such gains by 2007/08. (META Group Research - Trend)

The U.S. based cable service providers are expected to visualize considerable market enhancement by 2007-08, while the telecommunication is expected to strive for existence in the sphere of building entertaining avenues. The alternative voice over IP providers such as Vonage, at & T. are expected to enhance the market share during the period. The WiMax service providers are expected to come out as a broadband-access substitute to the cable and DSL technologies available to the private consumers or small businesses and also as a substitute to T1, T3 and microwave available to the enterprises and anticipated to cover about 20%+ of the market by 2010. The wireless technology is expected to be assimilated into the campus networks in a secure way. The concentration will be drifted to maintaining enhanced dependability and performance of both wired and wireless networks involving an integrated management strategy. This will entail investment in network-based performance management systems in the year 2006-07. During the year 2005 preference will be accorded to GigE to the desktop with 10 GB trunks in respect of the architecture for new wired installations along with the competitive lower pricing. In respect of the remote access it is predicted that the enterprises are expected to enhance their intention of remote access to all forms of access moving across the dial up into any available wireless and wire line broadband.

The demand for wireless connectivity by the direct consumers will also increase having wide choices to choose from like 3G, Wi-Fi, WiMAX. The SSLs and VPNs will dominate in the field of single-user remote access while the IPSec based installations will be resorted to in respect of the network-to-network use. The mobile devices are anticipated to incorporate the cross-network roaming efficacy such as 3G, Wi-Fi, and Bluetooth with WiMAX incorporation by 2009. In the field of remote access and home offices it is anticipated to propagate employee-driven, varied models. The DSL is considered to be a major element in the sphere of business access for small and midsize offices and in the retail vertical. The business broadband services are expected to be proliferated in Europe, while the broadband over power line will be a lower cost/lower reliability substitute in the United States. The U.S. carriers will increasingly resort to fiber for its application in the sphere of residential lines increasingly concentrating on the entertainment and gaming along with the household wireless. There will be rapid decline in respect of the satellite broadband services. The WiMAX-based services are expected to influence the overall market. (META Group Research - Trend)

The companies and U.S. cities are concentrating on the growing technology known as WiMAX as a mode of entailing high-speed wireless internet services. WiMAX revolutionizing the concept of internet connection through cable modems and traditional methods has been devised to beam out Internet access over wide areas with the use of radio networks with much wider ranges than Wi-Fi. Even some broadband operator finds it feasible to expand their networks with the help of WiMAX. The market for services like cable modem and digital subscriber line - DSL access over the traditional phone lines could have successfully been grinded down by such WiMAX technology. However, the dearth of appropriate airwaves and wide accessibility of DSL and cable are expected to inhibit WiMAX growth in the United States in the coming few years. Charels Golvin the analyst of Forrester opined that the WiMAX market however in other parts will be reduced comparative to North America. (WiMax May Pose Fresh Challenge to Broadband)

WiMAX is believed to be more appropriate in respect of some parts of Europe and developing countries where broadband is not very usual. The WiMAX service providers therefore are to consider carefully about its operation while choosing of its supplementation in a crowded market. The profit margin are predicted to be reduced at both the WiMAX operator and incumbent broadband service providers. As the in-Stat analyst Keith Nissen points out the enhanced broadband competition, price compression and high subscriber acquisition costs struggle to reduce the profit margins to the lower levels. The regional operators are visualizing the WiMAX as a strategy to expand their networks so as to surpass the high costs of involving new wires in the ground. The local phone provider Bell South Corp experimenting with an initial WiMAX system opines to have nine operating states. The Qwest Communications International that entails local services in 14 states has also applied the WiMAX technology successfully. (WiMax May Pose Fresh Challenge to Broadband)

David Willis, the vice-president of the Infrastructure Strategies advisory service of the META Group compared the Incumbent Local Exchange Carriers to the dinosaurs opining that they exist only when the surroundings eliminate the other competitors from the marketplace. The monopoly of ILEC in respect of residential and enterprise markets has successfully marginalized competitors. However the ILEC are predicted to confront the near-time extinction with change of surroundings. The META Group visualizes that the telecom market is expected to detach access from the services and the telecom market soon will initiate to resemble the software space. The conventional network access will soon be commoditized and the competition will be severe in respect of the provision of applications and services. The emerging progress on the software marketplace with an effect on worldwide competition and regulation are expected to entail many benefits for both the residential and enterprise consumers. The increasingly admission of new competitors will encourage enhanced industry innovation, pertaining to myriad new market entrants that will induce new product offerings. This will have profound influence on the pricing to the users. (ILECs Headed for Extinction, According to META Group)

The DSL, Cable and DBS as its first service entail fast internet connections. The large telephone companies have successfully kept DSL start ups from ensuring the service. With the advancement of technology services have also increasingly been provided those included High Definition TV service, Pay Per View Video Services, Music Services, Online Gaming, Personal Video Recorder functionality, Interactive TV, Phone Service and Email. (Home Entertainment Networks) the success of the WiMAX however, depends upon the right bands that safeguards its useful mobility, and the regulators that is necessary to accord operators enough liberty to deploy such mobile applications to fetch the full potential of 802.16. (WiMAX Ambitions Depend on Success in Newly Available Spectrum)

Conclusion:

To conclude, the META Group reveals the trends of infrastructure strategies during 2005-06 are found to be quite radical. Internet is predicted to become a larger part of the enterprise network influencing the remote accessibility and small offices, branch offices and data centers/disaster recovery. XML/SOAP is anticipated to be the prime forces during 2007-09 and the U.S. based cable service providers are expected to visualize considerable market enhancement… READ MORE

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