Telecoms companies have both great opportunities and major threats from the development of the Broadband Internet.
The major threats differ between fixed and mobile operators, and between local loop and long distance carriers.
The major threat to the local loop carrier is posed by VoIP services and the added value services that can be added for consumers (directories, social nets, converged media).
Fixed Line Telcos have made major plays with Internet TV (IPTV) but the economics are still unproven, and it is also in danger of being overtaken by directly streamed IP (see our MyPCTV notes)
For the mobile company, there are two major threats - firstly, as it moves to being a utility, the traditional customer acquisition culture brings crippling costs compared to a customer retention culture. Secondly, current mobile bandwidth and device capability is insufficient for many of the really advanced services, so use of interactive 3G becomes critical. Thirdly, and most critically, the IP business model is very different from the mobile model but they are increasingly competing for the same services. The endgame will be integrated services, but this will force major changes on the current industry structure
