Convergence Momentum is Building
Bernie Arnason, Pivot Media LLC
The issue of convergence has been talked about for many years now. Conceptually, it
makes great sense. Combining the utility and convenience of wireless, wireline, and web into a common
communications experience holds tremendous promise. Wireless carriers look to convergence to build additional
value and incremental revenue opportunities. Wireline carriers hope for those opportunities as well, but
also see convergence as a tool to help maintain relevancy for traditional wireline communications. Immense
development resources have been devoted to convergence, accompanied by the hype that comes with such
attention. Many may argue that the rate of actual convergence deployments have lagged the hype. But that
may be beginning to change.
There have been several recent carrier announcements that highlight actual convergence
deployments. Here are just a few:
- Embarq has made several convergence announcements this year. One of which allows wireless originated
text messages to be received on wireline phones. They also introduced their Together Plan Plus service
earlier this year, which offers a series of convergence applications, including Find Me Follow Me services
and "live" seamless transfers between mobile and wireline phones.
- XO recently launched their Unwired Office product in conjunction with Sotto Wireless. Unwired Office
brings convergence applications including hosted PBX with wireless options and unified messaging for the
SMB market.
- T-Mobile launched their Hotspot@Home product last June which routes cellular calls over Wi-Fi networks,
both at home and at T-Mobile branded Hotspots.
- Cincinnati Bell launched their Internet Call Manager product this year, which provides a caller ID
screen pop on the PC, giving customers several real time options to manage incoming calls.
These product launch examples are but a few of many convergence focused launches
occurring across the telecom landscape. The short to mid term future will see many additional convergence
trials and we will soon be able to measure convergence's true impact on the telecom landscape.
As service providers actively investigate convergence and its promise, they also need
to focus their attention on identifying market demands for convergence and build products to meet those
demands. When bringing convergence products to market, service providers should not make the mistake of
selling technology. Rather, they should approach marketing convergence as a platform to address specific
needs for customers. For example, unified messaging is increasingly being seen as a productivity booster
for small and medium business. For consumers, seamless transfers between mobile and landline phones offers
a unique convenience factor that many customers may find appealing. Using convergence to enable customers
to be more productive or less hassled should be the aim. Convergence isn't simply a way to sell more
features - it's a tool to expand customer relationships, by increasing their perception of the value
created by their telecom service provider. If leveraged correctly, convergence can go a long way in
enhancing customer relationships, while hopefully building incremental revenue opportunities.
Like most major evolutions in telecom, convergence increases the "homework"
for service providers. The technology, quite frankly, is the easy part. More than capable hardware and
software suppliers are bringing fully functional convergence platforms to market. It may have been slow
going for the past few previous years but convergence is here now, and in the short, mid, and long term
future, reliable and effective convergence solutions will be available. The tasks that require additional
attention include product development and marketing. Service providers must spend some time studying and
understanding their market to ensure they are developing and pricing the proper convergence product bundle.
Convergence products also require more marketing attention. Products must be well defined, communicated,
and packaged. Despite their more sophisticated nature, convergence products still need to be presented to
the marketplace in a simple way. Well coordinated marketing campaigns need to be developed and executed.
We are well beyond a marketing strategy of bill stuffers with convergence.
In fact, convergence and other evolutionary telecom concepts like the triple play
present a real positioning opportunity for telecom carriers. No longer just a phone company, telecom
service providers are now capable of enabling impactful experiences for their customers. Experiences that
increase productivity, convenience, and entertainment value are now achievable. Telecom carriers have a
real opportunity to build upon their respected telephone company legacy and position themselves as trusted
technology partners with their customers, providing a range of experiences that will engender long term
satisfaction and loyalty.
Bernie Arnason is managing partner with Pivot Media LLC. He may be reached at
Back to the January 2008 newsletter
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