[1st-mile-nm] The death of Telco as we know it !

[peter baston]

This from one of the most conservative Telco CEOs in Europe

Or should it be called " why the Iphone - Pad and Android will rule the
world " Get out of telco stocks NOW unless they really get it !!

-----------------------------------------------------

http://www.forbes.com/2010/08/06/lombard-microsoft-apple-google-intelligent-investing-france-telecom.html?boxes=Homepagelight

*Alexandra Zendrian, Forbes: *How do you anticipate this year will go
for *France
Telecom*<http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=FTE>(
FTE<http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=FTE>-
news
<http://search.forbes.com/search/CompanyNewsSearch?ticker=FTE> - people
<http://people.forbes.com/search?ticker=FTE>)?

*Lombard:* 2010 is a major year for the telecom sector worldwide. People
have made a lot of moves with evolution of Internet and activity of
telecoms. What is happening right now is restructuring for the sector.
Usually the way it works is the customer selected the telco and he enjoys
having the Internet, phone, etc. The ecosystem is organized around the
telco, with additional services coming form a lot of players. Now the data
traffic in mobile is exploding, which means that all customers worldwide are
using the phone as portable PC--not just with the neighbors and friends but
also a tool to be fully integrated into the network.

The big revolution which is happening now is that in the future the customer
will choose first the services they want and the device in which they will
receive the services. The secondary requirement will be the network. We've
reversed the model. The customer is fully interested by service and device
and content and the network is an accessory. They think that they can find
the network anywhere. It's a drastic change in business model. There needs
to be an investment in these different parts to be sure that the model we
have can go on. We have to be sure that each part will get necessary
financing to invest at minimum level to ensure services.

The networks, where the initial telephone network was installed a long time
ago. No one had to pay for new networks for a while. And now fiber optics
came along, which cost billions. You have to be sure that someone will pay
for the investment. You have to be sure that content provider have to find
some part of the revenue. The new model that I described which starts from
service provider guarantees that the revenues will reach these areas.

The fiber is very expensive because the solution which is very efficient is
to use this. We will wire each individual home. This works in comparison to
what happened during the last century. We will do something like that in
five years. The work wasn't done by our predecessors in *80 years.* So
there's an acceleration of the investment period and a lot of additional
expense with new technologies. The characteristics of the new digital world
is that everything is under the control of powerful software.

----------------------------------------------------------------------------------


( : ( : pete
-- 
--------------------------------------
Peter Baston
IDEAS business technology integration
www.ideapete.com
Cell: 505-690-3627
Mailto:pete at ideapete.com
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://www2.dcn.org/pipermail/1st-mile-nm/attachments/20100807/57183864/attachment.html>