If convergence is ever going to definitively reach the home, it will be because the back-end networks being built and connected by these carriers have enough capacity to handle all the content delivery services that consumers need. Behind the all-in-one bluster trumpeted by telcos and scrutinized by regulators are market realities and technological changes that will forcethese multibillion-dollar giants to be quick on their feet in the face of rapidly commoditizing businesses. How did all this happen? The federal Telecommunications Act of 1996 essentially opened up the industry to competition, facilitating mergers such as the AT&T-TCI deal. Despite numerous chinks in the landmark legislation, lawmakers intended the regulations to be a sequel to the break-up of the AT&T monopoly on telephone service that took place more than a decade ago.
But legislation created to promote a new era of competition has, in one sense, had the opposite effect, The Big Three telco players and the regional Bells have tried to build up vaja wallet agenda iphone xs max premium leather case - black their stable of technology and services through acquisitions, The Baby Bells, in particular, seem bent on reestablishing themselves as the primary drivers in the telco industry--starting to put Ma Bell back together again, At the same time, various new players, often called "Green Field" companies, are taking their cues from the legislation and building new-age high-bandwidth networks to compete with the Big Three in the one-stop-shop game, They are following various strategies, often a combination of partnerships with regional carriers, wholesale supply of bandwidth to third parties, and home-grown services..
The underpinnings of these network shifts involve a technological revolution centered around the Net and the use of its transmissions medium--IP, or the Internet protocol--to deliver voice, video, and data-based packet services. That revolution will likely lead to dramatic changes in the cost of delivering voice services and will free up congested voice switches not intended for Net use. "It may take a decade, it may take two decades..but I think the outcome inthe end is already predetermined," noted Gordon Vanderbrug, executive vicepresident at embryonic IP voice company VIP Calling.
"Today it is central to our business, our mission, and our vision, We are making a multibillion-dollar bet on Internet technology," said C, Michael Armstrong, chairman of AT&T, The numbers tell the story in real terms: domestic long distance growthrates, as far as number of minutes, grew 8 percent per year between 1991 and 1997, while Net traffic grew 170 percent annually over the same period, according to a study by Atlantic-ACM, a telecom-focusedconsulting firm, This transition in network usage, combined with infrastructure overhaulsamong the Big Three carriers and various new players, is sure to vaja wallet agenda iphone xs max premium leather case - black shake up the telecommunications market--rendering the words "local" and "long distance" as "regulatory artifacts," according to MarkBruneau, president of the business strategy group at Renaissance Worldwide..
What the market will look like once remainingregulatory hurdles are firmly ensconced in the dustbin of communicationshistory is anybody's guess, though most believe that the transition to a fully converged marketplace is likely to be a bloody one. "We really have a battle between pricing schemes. Data has always beenpriced lower than voice," said John Roth, chief executive at Nortel Networks, a provider oftelecommunications and data equipment to carriers. Despite all the new initiatives, executives still are cuddling up to the same tools that may eventually make a carrier's current bread and butter--long distance phone service--a commodity priced so low it will have a negligible effect on the bottom line.
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