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The Changing Face Of Communications
1. IBM Global Business Services
IBM Institute for Business Value
Telecommunications
The changing face of communication
Social networking’s growing influence on telecom providers
People are communicating more things to more people than ever before, Gated Communities – Companies using
this model focus on many-to-many
and not just by phone anymore. Internet-enabled communication models communications, rather than point-to-point,
are gaining audience, attention and market share at the expense of tradi- within telecom-controlled environments.
They are a “walled-garden” for operator-
tional telecommunication providers (Telcos). Can Telcos fight back and led collaboration services and are likely
find new growth opportunities in this rapidly changing ecosystem? The to appeal to users and enterprises that
desire secure and reliable communication
challenge is not just in understanding the technology, but also the un- environments.
folding fundamental shifts in human communication behavior.
Shared Social Spaces – This rapidly
growing model facilitates collaboration
The face of communication has The widespread social networking
on the open Internet. Key players include
changed dramatically over the past few phenomenon reflects shifts in two long-
social networking sites such as MySpace
years. Traditional Telcos, which have term communication trends. First, there is
and Facebook. These providers have
historically dominated the arena of two- a shift in communication patterns – from
the potential to become integrated
way interpersonal conversations, are point-to-point, two-way conversations,
communication platforms. Besides gaining
increasingly being challenged by new to many-to-many, collaborative
audience share, these services pose an
market entrants that use open platforms communications. Secondly, control of the
operational challenge to Telcos as they
to meet diverse and rapidly changing user communication environment is transitioning
“piggyback” on existing communications
wants and needs. from Telcos to open Internet platform
infrastructure, imposing capacity and cost
providers, enabled by better, cheaper
Social networking Web sites and services, issues for network providers.
technology, open standards, greater
such as Facebook, MySpace and Cyworld, penetration of broadband services and In the short-term, as the industry
have become primary communication wireless communication networks. transitions to more open and collaborative
media for a new generation of digitally
communication models, the traditional
aware consumers. Driven by high The combined effect of these trends
model will likely remain dominant. Over
broadband penetration, maturing “social is altering the competitive landscape
the long term, however, the industry can
software” and affordable, mobile Internet- in communications and giving rise to
expect a shift toward models that facilitate
enabled multimedia devices, these sites emerging business models that include:
collaboration and sharing, with Shared
and services are making inroads with
Open and Free – This model features Social Spaces attracting a more significant
enthusiastic users and garnering the
companies that offer one-to-one and impactful share of communication
attention of advertisers, consumer product
communication services, but through an time.
companies and enterprises that are using
social media to reach their customers, open Internet platform and at no – or very
Over the short to medium term, Telcos
build brand loyalty and communicate with little – cost. These services potentially
should focus on laying the foundation for a
geographically dispersed employees, threaten traditional services such as long
more open and collaborative future to:
customers, suppliers and partners. distance calling and mobile roaming.
