N-GEN Communications Web-based Seminars ©NGCS

Seminar - An Overview of Communications Technologies

Module 1 - An Overview of the Communications Industry                                                                Slide 7 of 26   _________________                                                                                  __________

                                              Communications Strategies

                                        Multiple Platforms (Old)

                                        Convergence

                                        Content Provider

                                        Moving from Commodity Provider to Value-added

_________________                                                                                  __________

The established telephone companies are carrying Public Switching Telephone Network (PSTN) baggage. The PSTN was designed for voice communications in an analogue form. In the 1970s, 80s and 90s many overlay networks evolved from the PSTN facilities to accommodate data communications needs. As whole information (including voice and video) became digital new converging technologies evolved with new IP-based networks. The communications industry adopted media-convergence strategy and telephone companies became content and value-add service providers.

In the old strategy carriers had different networks for voice, data and video. These networks are too costly to operate, manage and expand. The carriers are moving towards a single network to provide services. The credit goes to efficient digitization of the information. The single integrated network will enable carriers to reduce their network operating costs.

One of the new strategies of the Canadian carriers is to be a content provider. Bell Canada owns a newspaper - The Globe and Mail and a TV channel - CTV. Bell Canada is converging media information with their core business - communications networks. The other example for both Bell Canada and Telus is to be a Web services (Sympatico and My BC) provider.

All carriers are adopting a strategy of providing a customer communications solution rather than just giving them a communications pipe.