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The Internet, IP, and New Market Opportunities: A Strategic Analysis
IEC Publications, Pages: 218
The phenomenal growth and commercialization of the Internet since the mid-1990s have sparked debate, ignited imagination, and fueled speculation about the technology's potential effect on social and business environments. The Internet, IP, and New Market Opportunities examines the co-evolution and integration of the Internet and the public switched telephone network (Pstn) to establish how technology, business, and social factors interact and how such interaction will determine the wide-scale deployment of Internet protocol (IP) networks. The strategic analysis focuses on how the Internet and IP technology are reshaping the workplace and their potential for generating business efficiencies and redefining the business model. It also examines the residential uses of the Internet to assess consumer benefits and identify market opportunities for new services. The Internet, IP, and New Market Opportunities generates several key insights into the myths and realities of IP as well as the market opportunities that the technology presents. Key questions that are addressed in the strategic analysis include the following: - How can IP-based applications reduce costs for customer support and operations support systems (OSS)? - What will be the growth of Internet-based sales in the residential market? - How will the demographics of Internet users impact the growth of e-commerce? - How will incumbent telecommunications service providers affect the adoption of IP-based applications? - How can security be ensured in an IP network? - How can IP networks be used to offer merged voice and data value-added services? Key IP Trends and Response Strategies In the new telecommunications and IP environment, competition will shift from price differentiation of similar products and services to the provisioning of value-added services and the ability of telecommunications service providers to bundle these services. In addition, the growth of Internet-based sales will be relatively slow for the residential market, in general, as habits evolve to match the new technological environment. This strategic analysis is designed to help communications companies identify key trends such as these and plan their future operations accordingly. The existence of business efficiencies, particularly in an era of heightened competition and globalization, will be a powerful and irresistible driver for the adoption of IP-based applications. Many new service providers in this evolving IP environment will continue to expand, acquire, and deploy their own networks, although many of these will still be small in relation to the incumbents. In many organizations, the use of IP in core business processes has generated significant economic efficiencies and productivity. However, in many cases where IP has clearly generated cost and productivity benefits for companies, substantial organizational restructuring preceded the effective deployment of IP-based applications. The Internet, IP, and New Market Opportunities uses corporate case studies of successful companies to demonstrate the connection between IP and business efficiencies. The studies in this report demonstrate the ability of IP-based applications to lower costs. This report's survey of some 70 firms, across different industrial sectors, is meant to gauge the extent of penetration of some of these applications. WHO Should Read This Report Regional Bell operating companies (Rboc) that must deal with the costs and inefficiency inherent in the operation of parallel circuit-switched voice networks and packet networks Application service providers (ASP) whose products and services must be closely tuned to the IP network of tomorrow Competitive local-exchange carriers (Clec) that must compete with incumbent operators by migrating the majority of their customers and traffic to a packet-based network Interexchange carriers (IXC) that seek to compete with ISPs and multinational companies by providing end-to-end, integrated communications solutions to key customers Hardware and software vendors whose solutions and products must address the current and future IP needs of their major clients Internet service providers (ISP) for which services such as IP VPNs are vital for continued growth and market-share Enterprise network operators that will likely coordinate the convergence of all networks with IP as the common means of internetworking University professors whose research and courses must reflect the most recent developments for IP as a dominant delivery mechanism Features The Internet, IP, and New Market Opportunities takes an in-depth look at the rapid growth of the Internet and its user demographics and profiles next-generation providers. This detailed resource explores the growth potential of IP-based networks and illustrates an array of benefits across a range of industries and users, as it does the following: Analyzes the technical advantages and limitations of the Internet Describes the business environment supporting IP-network growth Forecasts the future of packet-switched voice Offers an overview of distance learning Describes the principal applications currently supported by IP-based networks Provides detailed residential and corporate case studies Principal Investigators Elizabeth Fife, Ph.D., Research Associate, Center for Telecommunications Management, University of Southern California Michel John Mehler, Ph.D., Head of Mobility and Network Services, BT Labs Francis Pereira, Ph.D., Research Associate, Center for Telecommunications Management, University of Southern California Richard Worthington, Ph.D., Research Director, Center for Telecommunications Management, University of Southern California Professor of Politics and Public Policy, Pomona College About CTM Center for Telecommunications Management (CTM) provides telecommunications professionals with the essential tools for staying on the cutting edge of the fast-growing telecommunications and information-services industries. Founded in 1985, CTM is part of the Marshall School of Business at the University of Southern California and is dedicated to the understanding of emerging strategic and policy issues facing the industry. CTM offers management education, industry research, and publications that present new strategies for a global, market-driven environment. CTM brings together many business disciplines to educate professionals on vital telecommunications issues.
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