VoIP (or Internet voice) is making the triple play essential for incumbent telcos

摘要

The emergence of SIP phones and widespread broadband penetration in many marketsrnmean that Internet voice will soon become a real alternative to circuit-switched accessrnfor many customers.rnIf incumbents do nothing, customers who have broadband will stop buying exchangernlines and local calls because competing VoIP offers will be much cheaper and will offerrnmore features. Incumbents’ local revenues are under serious threats.rnTo maintain local revenues in the face of this disruption, PA believes that incumbentrntelcos need to migrate to triple play – a new business model in which local broadbandrnaccess is the basic service and voice, Internet access and TV are value-addedrnapplications.rnSpecifically, the migration should be done in the following ways:rn? Increase the price of broadband Internet and offer big discounts to customersrnwho buy both voice and Internetrn? Don’t write off your circuit switches. Use VoIP to provide a premium voice servicernto customers who want the extra features they providern? Get into TV distribution and make sure that consumers don’t need to have arnsecond broadband network in their homesrn? Address a series of internal and external factors related to executionrnThe rest of this paper describes our thoughts in more detail.