![]() Financial Daily from THE HINDU group of publications Monday, Feb 07, 2005 |
|
|
|
|
|
Info-Tech
-
Convergence Plethora of business opportunities Our Bureau
Convergence can become a major leveler if e-governance and social upliftment initiatives, using convergence infrastructure, take off in the country. Shaju John
One of the criticisms against the Indian Communications Convergence Bill, 2001, is that the word convergence has not been accurately defined. In the international context too, research firm Gartner has often observed that the international technological community too is vague about the word and perhaps conveniently so, as an approximate way to summarise a whole lot of trends that are happening. From the Indian telecom operators' point of view, convergence currently means supply of voice, data and video facilities through a single offering to their customers. Creditably for the Indian industry, all the large operators already have some kind of convergence offering or the other, with the largest of them getting their infrastructure network in place for comprehensive convergence play. What kinds of business models are going to emerge from this convergence? Analysts wonder whether information technology companies, media companies, telecom companies would all be smoothly working together, or whether they would end up stepping on each other's toes to provide convergent services. Analysts' predictions describe various scenarios. In one, everyone ties up with everyone, much like interconnection in today's telecom scenario. All appliance manufacturers join hands with all mobile service providers; all content and entertainment providers forge ties with all broadband providers, etc. There is a harmonious give and take atmosphere and everyone profits. In the other, the component industries in convergence think it is the hub of convergent services and tries to come up with its own bouquet of offerings. Telecom offers IT services, cable companies offer voice services, and so on. Here there could be a clash. In this case, there could be a lot of bloodshed, and it would be only after the `casualties' have been disposed of that one would know which business model actually works. One mind-boggling aspect of convergence is the number of tie-ups that would have to happen among the various industries involved. There would be common technological standards to think of, so that the various technological components can `talk' to each other. There would be thousands of spider-webs of contracts to be monitored, ranging from technological to revenue-sharing. Then, lies the question of who would undertake the responsibility for security. The monitoring of digital rights, especially, is a complicated issue. Many countries are putting together their legal framework for the `convergent' economy that they envisage, but some wonder whether this is like putting the cart before the horse. Some legal experts have warned that the Indian Communications Convergence Bill, 2001, should not be passed in a hurry before actual convergence has taken place and is in full swing. Some others have described it as `futuristic' but an indication of preparedness and foresight on the part of government. The convergence law's objective would be to facilitate carriage and content of communications of all kinds. It also provides for an autonomous commission to be called the Communications Commission of India to regulate all these activities, keeping in mind that the competitive, level-playing field environment with smooth interconnection must be provided for industry while also ensuring that the offerings are in the consumer interest and that their rights are protected. This law will replace other existing legislations in the country Indian Telegraph Act, 1885; Indian Wireless Telegraph Act, 1931; Telegraph Wires (Unlawful Possession) Act, 1950; Telecom Regulatory Authority of India Act, 1987; and Cable Television Networks (Regulation) Act, 1995. Several senior advocates in the country, notably cyber law expert Mr Pavan Duggal, have criticised the Indian convergence law, as it seems to be taking shape, as giving too much power to the Government. However, that remains to be seen. If that comes into place, for instance, unbundled access to the local loop would be a major issue in the country. The public sector telecom companies have so far refused to allow this; the local loop is their golden goose, and they have great convergence plans on the anvil. There would be a shift in basic concepts of business and business operations on account of convergence. One of the biggest benefactors will be the ordinary citizen. If all interactions with the government and its agencies are easily accessible to the public, and all information is accessible (the right to which the law is expected to implement) this would be the single most significant impact of convergence. The geographical development of the country itself could take a new turn. The concept of offices and commercial hubs may change. With respect to the corporate sector, would convergence lead to larger entities or would entities get dismembered according to activity and eventual de-institutionalisation so that the tendency would be towards each individual becoming an entrepreneur whose services are available to anyone for the bidding? Will all these individuals be monitored by the convergent law alone? Convergence laws cannot be watertight and confined to individual countries. Convergence would lead to disintegration of boundaries, in a sense. Countries, even those with divergent political structures, would have to consult each other with respect to this. Issues such as who takes the responsibility in case of violation of the law would be the complicated ones coming up in the days ahead. There would also be the enormous task of making almost everyone in the industry and Government technology-aware. The recent arrest of the CEO of Baazee.com, through which pornographic material was advertised for sale (but which was not actually sold through Baazee), was a case in point that led to much debate. Does clicking on the `I agree' icon (a very common requirement in many Net-based activities) make for a legal contract or not? Whatever the complications, everyone agrees that convergence presents huge business opportunities. Convergence can also become a major leveller, especially in India, if e-governance and social upliftment initiatives, using convergence infrastructure, take off in the country. At present, e-governance projects live only for as long as the proactive initiator of the project, usually in the shape of a pro-active administrative services officer, is in charge. The challenge would be to provide sustainable e-governance projects so that the benefits of convergence can percolate to every individual in the country.
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2005, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|