Convergence – More Business than Technical Challenge for Smaller Operators

The challenges that small telcos face regarding the convergence of services onto a single platform was the subject of a panel featuring industry experts at the 2008 TelcoTV Conference. The overarching theme of the panel was the challenges surrounding convergence deal more with the business issues, as opposed to questions of technology.

Steve Pastorkovich of OPASTCO suggested that in order for independent telcos to have a powerful three-screen strategy, they need better and more affordable access to video content.

Warren Lee of NeoNova said, “Convergence should be the single greatest focus driving all of your businesses planning and decisions.” He went on to say that it is important for a telco to know what they are; are they a pipe provider or a full-service provider or some sort of hybrid between the two. He talked about the importance of telcos being able to easily add and generate revenue from multiple broadband services, such as Rhapsody, home security services, etc.

Lee stressed the importance of Business Management software to track things such as service profitability, customer support and return on investment. He recommended that telcos need new revenue modeling tools. He pointed out that planning has to transcend functions within a telco, so that there is cross-pollination between budgets.

Yue Chen, Director of Systems Engineering for Juniper Networks, echoed Lee by suggesting that it is important for telcos to align their network with their business.

Donovan Prostrollo of Calix said that it is necessary for telcos to think like the consumer in order to adapt to the changes in consumer behavior, competition, technology and regulatory. Prostrollo suggested that convergence is about a connected life.

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