The convergence of data, voice and mobile networks is shaping the future of the telecommunication industry. Cable & Wireless invested GBP 950 mn in creating a global IP network capable of handling combined services.

Shiladitya 'Sunny' Ghosh*, Consultant, NetGalactic Europe

sunny@netgalactic.com

The looming reality of such convergence has seen a spate of mergers and acquisitions ensue as the major players position themselves in this new economy. France Telecom and NTL bought Orange to give themselves a mobile phone wing; Hong Kong Telecom was acquired last year by Pacific Century Cyber works; MCI WorldCom has purchased sprint and Vodaphone took over the German giant, Mannesman.
The intention is to drive the multi-service telecommunication technology and services. One major knock has been on how they will generate the money out of all this. The I-Mode in Japan is quite a clear answer and has created an entire industry around providing information and services to the end user.

The future certainly lies in providing enhanced services to generate and increase revenue. One of the most immediately obvious of such services is unified messaging; whereby a single telephone number and account is capable of gathering email, voice mail and faxes in one location.

Industry-specific applications and specialised information delivery services are also likely to be in the limelight. The market for converged telecommunication solutions is huge. According to the research firm, Federal Sources Inc., spending on such services by the US government alone will grow from $29 mn to $1.6 bn by 2009.

The wire-free phone networks can become financial institutions, dealing as much with the transactions themselves as the telephony behind. Ask yourself one question 'What is a telecom company?' "AT&T is a bank now and Virgin, a mobile services reseller." says Gary Gibbs, Alliance partner manager at Intec systems, world's largest provider of inter-carrier billing solutions. The takeovers and mergers show the subtle redefinition of the telecommunication industry.

Framework & Payments

One of the factors driving m-commerce is the payment option and the flexibility that is provided to a customer. This is one of the most attractive propositions because it gives people control of their money while on the move. For the better part of the last decade, some banks have allowed their customer to move their money between accounts by using press button sequences on phones including mobiles.

Companies selling products will have to allow electronic payments directly from the phone. Already, people are getting familiar with the concept of digital wallet, which can be topped up by using a credit card and then utilised while doing a transaction. This will certainly bring simplicity in transaction, verifying identify of the user over a online password or over the phone.

To further ease the usage of such services, some companies are billing the total cost of such purchases with the telephone bill itself. This form of payment is likely to prove highly attractive to the phone network operators, who will see potential for new revenue streams such as transaction commission. Virgin, the retail giant, with its own mobile phone subsidiary has already tested this form of m-commerce in its mega stores, to purchase cans of virgin coke from the machines. All the factors above are helping companies to test and drive impulse buying.

The sales of mobile phones, palms, PDAs, etc. might be dropping everyday but the power it is developing everyday is far outstanding in today's economy. Every newsstand in London is scared with the advent of the electronic newsstand.

The capabilities of an electronic newspaper agent like palm, range today from syncing up-to-date information, to pushing information from a company intranet for sales people in the field.

"'M-Commerce to be used for payments that don't require research,' will be an appropriate definition for such a standard to gain popularity among the user groups." says Conrad Buck, head of mobile data consulting agency, Red Hot Chilli. But above all, there stands a subtle roadmap, a new shaping structure for the global m-commerce industry.