The Changing Telecommunications Network

Stuart Henshall

June 5, 2000

Key Factors

• Bandwidth: Availability and Cost

• Government: Intervention and Regulation

• Involvement: Applications and Usage

• Innovation: Offerings and Standardization

1910 Emergent Network

Bandwidth

Government

Involvement

Innovation

Hyper-competition, high cost of access, limited applications, intervention. and standardization

20’s-60’s Monopoly for Scale

Bandwidth

Government

Involvement

Innovation

Highly regulated, broad penetration bandwidth and involvement

70’s-80’s Scale with Choice

Bandwidth

Government

Involvement

Innovation

Reduced regulation; lower costs, increase in innovation and choice.

90’s - Value Added with Scale

Bandwidth

Government

Involvement

Innovation

Bandwidth exploding, costs down, regulation down, increasing complex product choices, new innovative standards

Key Questions

• Where is your focus?

• Where is the money? Today? Tomorrow?

• How would we map you today?

• What is the footprint for tomorrow’s market?

• What are there tipping points?

• How are our scenarios reflected?

05’s The Emergent Network?

Bandwidth

Government

Involvement

Innovation

Bandwidth no longer constrains, traditional regulation unimportant, network becomes invisible, innovation explodes.

What is the impact for

• Customers

• Channels

• Products

• Development

• Hyper-competition?

05’s The Emergent Network?

Bandwidth

Government

Involvement

Innovation

Bandwidth no longer constrains, government regulation unimportant, network becomes invisible, innovation explodes.

The Changing Network

Bandwidth

Government

Involvement

Innovation