This from one of the most conservative Telco CEOs in Europe<br><br>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 !!<br><br>-----------------------------------------------------<br>
<br><a href="http://www.forbes.com/2010/08/06/lombard-microsoft-apple-google-intelligent-investing-france-telecom.html?boxes=Homepagelight">http://www.forbes.com/2010/08/06/lombard-microsoft-apple-google-intelligent-investing-france-telecom.html?boxes=Homepagelight</a><br>
<p><strong>Alexandra Zendrian, Forbes: </strong>How do you anticipate this year will go for <span class="tickerlinx"><a href="http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=FTE"><b>France Telecom</b></a></span>
(
<a href="http://finapps.forbes.com/finapps/jsp/finance/compinfo/CIAtAGlance.jsp?tkr=FTE">FTE</a> -
<a href="http://search.forbes.com/search/CompanyNewsSearch?ticker=FTE">
news
</a> -
<a href="http://people.forbes.com/search?ticker=FTE">
people
</a>)? </p><p>
<strong>Lombard:</strong> 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. <br></p><p><meta http-equiv="content-type" content="text/html; charset=utf-8">The big revolution which is happening now is that in the future the
customer will choose <font style="color: rgb(255, 0, 0);" size="4">first the services they want and the device</font> in
which they will receive the services. <font style="color: rgb(255, 0, 0);" size="4">The secondary requirement will be
the network</font>. We've reversed the model. The customer is fully interested
by service and device and content and the<font style="color: rgb(255, 0, 0);" size="4"> network is an accessory.</font> 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. </p><p><meta http-equiv="content-type" content="text/html; charset=utf-8"></p><p>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.</p><div id="listSpBox" class="makeTab"><div class="ui-tabs-panel" id="glanceTab"> </div> </div><div class="commStory" id="commBox">
</div><p>The fiber is very expensive because the solution which is very
efficient is to use this. <font size="4"><span style="color: rgb(255, 0, 0);">We will wire each individual home</span></font>. This works
in comparison to what happened during the last century. We will do
something like that in five years. <font size="4"><span style="color: rgb(255, 0, 0);">The work wasn't done by our
predecessors in <u><b>80 years.</b></u></span></font> 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. </p><p></p><p>----------------------------------------------------------------------------------<br></p><p><br></p>( : ( : pete<br>-- <br>--------------------------------------<br>Peter Baston<br>
IDEAS business technology integration<br><a href="http://www.ideapete.com">www.ideapete.com</a><br>Cell: 505-690-3627<br>Mailto:<a href="mailto:pete@ideapete.com">pete@ideapete.com</a><br>