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Watch out for the bundlers
01 July 2004
Telecoms operators face a challenge from consumer companies with experience in bundling products and services, says Jean-Hervé Jenn, EMEA president at Convergys. As prices are reduced by new technology such as VoIP, they need to look for sources of growth
Jean-Hervé Jenn looks at the telecommunications industry with a banker's wary eye and spots trouble ahead. As the afternoon sun shines on him in his office a few miles outside Cambridge, England, he runs through some of the challenges that are facing the operators that are the clients of Convergys, which he joined in 2003.
The money set aside for third generation mobile doesn't take long to say: "There's $100 billion on infrastructure, and $110 billion on licences," says Jenn, shaking his head in disbelief. "What have they got to show for it?" he asks.
He turns to the fixed operators, cutting the cost of broadband, and seeing voice over IP competitors eating into their revenues. If they cap the monthly fee, "then they cap their growth", he says. "The population in Europe and the US isn't growing, so where will the growth come from?"
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