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Telecom: Fast & Furious ICT SectorSubmitted by Boko on 16 June, 2006 - 20:23.
Wireless Telecom UnlimitedA lot of explanations can be made for telecom leading the digital incursion into SSA; besides a fairly short ROI cycle, entry barriers are relatively low as far as widely-deployed public utility set up costs go. It is relatively inexpensive to piggyback extensions on pre-existing infrastructure or install wireless connectivity hardware from scratch, rather than installing in-ground wire/fiber cables, hence the characteristic dearth of ‘wire’ connectivity in SSA. Voice vs. Data Traffic in Telecom NetworksThere’s always the alarmists to contend with; this article seems to suggest the SSA telecom market is nearing maturity -- weighing in from the network voice traffic versus data traffic comparison. My days at Nortel coincided with the emergence of the ‘succession’ initiative. Succession, in a nutshell, was a fallout from industry study reports that showed data traffic volumes were overtaking voice traffic on the legacy telecom network. Hence, the industry needed to rework entire network configurations to make them more data-friendly; switches, routers, bridges, protocols, etc., all had to become packet-data compatible (IP and ATM protocols initially but ATM didn’t quite take off). A lot of industry-defining changes have occurred following this 'packetized' (read: Internet Protocol - IP) network revolution, giving rise to a pervasive slew of Voice over Internet Protocol (VoIP) applications at greatly reduced costs – evident in recent telephone and broadband internet access cost reductions (No impacts on cable TV 'yet'). EASSy problems are Telecom problemsTypically, telecom companies operate and grow, just like any other industry, via conventional business strategies; enhancing quality of service (making best use of whatever tools available, wireless or not), manpower quality, skills and organization, marketing strategies, product structuring, advertising, Mergers and acquisitions, forging synergies within and across industry platforms, Innovation, etc. But they remain most vulnerable to the break-neck speed of technology transformations -– giving rise to a whole range of industry inebriating paradigm shifts. This unique techno-slippery trait of the telecom terrain would appear to feed the anti-open standards sentiment among SSA telecom providers as seen in the on-going EASSy squabble. Playing devil’s advocate for a second, here's a teaser to bring the anti-open standards argument into sharper focus on the EASSy problem; how would a telecom company recoup sunk costs invested in laying fiber and copper cables, installing copper/fiber-centric switching and routing equipment, if ISDN transmission over power line (IOPL) protocol suddenly gains traction on a commercial scale, and wipes out existing copper and fiber competitive advantages?
...Part II coming |