Thursday, November 04, 2004

Convergence and fiber divergence

At a Gartner conference Deutsche Telekom presented its view of protecting fixed network revenues: simply get everybody to subscribe to DSL. BT Group on the other hand gambles on convergence: fixed/mobile, mobile/WiFi.
In a different way, IT-services also provide for growth opportunities. This is an area where DT and BT agree. T-Systems and BT Global must show the way.

Obviously, BT is motivated by their sale of the Celnet mobile business.

A comparible issue is the fiber disagreement. Verizon is rapidly building FTTP, whereas SBC goes no further than FTTN. Verizon is willing to spin-off up to 25% of access lines in order to be more efficient about the fiber investments. BellSouth is critical and Sprint questions those investments altogether. Now NTT is stepping into the game and supposedly is ready to commit EUR 40bn through 2010 to upgrade 30m homes and businesses.

Obviously, Verizon and NTT are motivated by the fiercest of competitors, Comcast and Softbank (Yahoo BB).

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