The New Economic Model for Telephony

As everyone seems to know these days, you no longer require a land-line telephone in your home to communicate.
Long gone are the days of $300 long-distance bills, but soon to disappear are those clunky things we call land-lines. Think of the impact this is having and will continue to have on the business model for traditional phone companies like Qwest or AT&T. The revenue stream for these businesses will no longer come from land-line subscriptions and long-distance charges. Instead these companies are branching out to meet the needs of a totally converged society.

Convergence refers to the idea of bundled communication services reaching your home. Ten years ago, my boss gave a speech to a local media group in Kansas City concerning convergence. His prediction was that someday very soon, all the communication--be it two-way with phones or one-way with television products, would all come to your home through one box.

Today that is true. In my home, I bundle my cable, internet and phone services with one company and it is delivered to my home through one box. His question to the media folks at the time was "what kind of impact will this have on your jobs in the next 5 years?" and "Do you think you will have a job in 5 years?"

There was a certain profundity in his predictions. Not just because they have come true but because the change that has enveloped society as a result.

The ability to have free phone conversations on your computer is another step in the evolution of telephony. Where once you were tied to your land-line, now with a headset and a laptop, you can communicate with anyone, anywhere. Now that is change!

Until next time.