The Hindu Business Line : To serve better

Convergence is about services and new ways of doing business and interacting with the society. As technologies and services converge, versatile products are being developed by companies. — K.K. Mustafah

CONVERGENCE has not been defined accurately although many of the trends in telecommunications today could be described as convergence depending on the context of discussion. Broadly, `to converge' is to come together from different directions so as to eventually meet.

There is widespread agreement that convergence is occurring at the technological level with digital technology enabling both traditional and new communication services — voice, data, sound, picture — to be provided over many different networks. The cable TV network is the carrier for Internet and voice services in addition to video signal distribution. The traditional telephone network has been engineered to distribute video signals to the customer premises along with voice and Internet services leading to `triple play' which is becoming a popular business model.

The techno-economic factors of the fibre optics technology and the new copper-based technologies such as xDSL made the business models viable commensurate with quality distribution of multi service signals to the customer premises.

The simple mobile telephone itself is a product of convergence of three technologies — telephone, computer and television. Today, the mobile phone has become an indispensable gadget with keypad-operated personal digital assistant (PDA), sensitive camera for capturing images and high-resolution screen for viewing images. These are increasingly being used for surfing the Net, accessing corporate networks for transferring files and e-mails. It is evident that convergence is not just about technology. It is about services and about new ways of doing business and interacting with society. The business support systems and customer relationship management architecture are in the threshold of major changes necessitated by service bundling due to vertical integration of network carriers and the consequent need for convergent platforms. Carriers and operators in the wire line and wireless sectors are converging their offerings to retain and build up their greatest asset, the customer base. The `convergent customer' today is demanding a single point contact for his communication needs where all information pertaining to the services could be obtained instantly.

As technologies and services converge, versatile products are being developed by consumer durable companies. These products can offer benefits other than their core functions, can be networked and offer the possibility of remote access. However, the low penetration of PCs in India may force TV to be the centre of converging services for the present, with the set-top box as the essential interface at the customer premises.

These developments are potentially far reaching. The emergence of new services and the growth of existing services are expected to expand the overall information market leading to new opportunities for economic growth and employment. The stakeholders of the various sectors are looking at the business opportunities provided by the convergence of services to enhance their traditional services and to branch out into new activities. In order to foster equitable development of new markets such as e-commerce, interactive entertainment and e-governance, there is a need for convergence in the regulatory approaches, which would facilitate smooth convergence in the role of the content provider, infrastructure provider and the service provider. The `unified licence' concept is a step in the direction to remove multiplicity of licensing requirements and merge regulations governing various services.

While there is little doubt that convergence will open up a lot of business opportunities, in reality, the implications are of a much wider magnitude impacting lifestyles, conduct of business, revenue models and regulatory frameworks around the world.

(The author is former CGM, MTNL Mumbai Circle.)

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