IBM Finds Telco Changing with SoComm

Peter : On Rad's Radar?
| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

IBM Finds Telco Changing with SoComm


Image via Wikipedia

has a study out about how Social networking has co-opted many minutes of traditional talking.


People are communicating more things to more people than ever before, and not just by phone anymore. Internet-enabled communication models are gaining audience, attention and market share at the expense of traditional telecommunication providers (Telcos). Can Telcos fight back and find new growth opportunities in this rapidly changing ecosystem? The challenge is not just in understanding the technology, but also the unfolding fundamental shifts in human communication behavior.

Facebook, SMS, twitter, LinkedIn, Ning, YouTube, Ustream, and all the rest of the social media strata are where people are communicating. IM/chat like Skype, Google Talk, Yahoo, and MSN also have taken some minutes out of the system.

If you look at usage of cell phone minutes on the youth, you will see very little talking but lots of texting and web access. (Maybe charging per minute caused that). The primary communication method is social networks not telephony.

Telcos are losing landlines, mainly to cellular replacement. Certainly, cableco bundles have taken some landlines, but studies show that in this economic mess folks choose the mobile phone over a static line. Add in the fact that the next generation doesn't eat up minutes means that long distance revenue will be dipping as well as landline counts.

This presents a problem for telcos because the content folks don't want to share the revenue, which in many cases they don't have. Twitter, Facebook and Hulu are all having a challenging time monetizing a rapidly growing platform.

People are communicating in new ways -- and none of these innovations came to you from Ma or Pa Bell. Surprised? I'm not.

Related Articles to 'IBM Finds Telco Changing with SoComm'
Featured Events