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Telephony is Dying, are Telco's?

Colin Pons, Senior Architect, KPN

Date: Friday, October 30

Time: 4:35 - 4:50 PM

Location: Transformatorhuis

Telco's are experiencing decreasing revenues and margins for Telephony as a result from competition from VoIP Telephony (what's in the name), Triple Play/Multi Play propositions, PSTN retention offers and increasing SAC and the decline in subscriber numbers.

For Telco's with strong cable competition this trend is compounded by the introduction of Docsis 3.0 by cableco's allowing them to far surpass bandwidth speeds of xDSL. This is a driver for Telco's to speed up fiber roll-out.

But given the situation in the financial markets and the uncertainties w.r.t economic value creation this is easier said than done. The alternative of focusing on services rather than on BB competition wars is not enough.

Competing services come from Cableco's, online application and content providers and embedded apps. In other words are Telco's relegated to bitpipe provider and halt investments in networks? Is there a case for "smart pipe"? What about customer services?

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