Competition drives the growth of convergence

IT directors are being confronted by an increasingly bewildering range of communications technologies from mobile operators, wireless network companies, and traditional fixed-line telecoms providers.

But growing competition is driving the networking industry towards providing converged services, combining the different methods in a single offering.

Convergence covers a range of possibilities: mobile and IP telephony, mobile with fixed-line, and mobile operators combining with media providers to offer distinctive content.

Experts at last month's 3GSM World Congress expect competition in this area to lead the industry towards radical change, as rival suppliers fight to meet users' needs for a combined offering.

'Mobile technology is evolving at a rate that is faster than we can deploy it,' says Joe Ziskin, IBM vice president of global telecoms. 'We must wait and understand each technology as it evolves.'

Ziskin says that many elements of network infrastructure are becoming standalone and capable of working with components from other operators.

'The isolation of technology layers in the legacy network will be the engine for growth in the industry,' he says. 'We are looking at how to break the application layer from the data.'

By separating elements such as billing, network control and transport, Ziskin says the industry can integrate new technologies faster and drive growth.

And network operators are trying to increase the speeds at which voice, data and multimedia content can be transmitted wirelessly, to offer extra services around basic mobile telephony.

Andrew Steven, Microsoft's European communications sales director, says the company has been focusing on solving this problem because 'convergence is going to happen'.

He says any platform that gives telecoms providers, mobile operators and network service providers independence from each other's infrastructure will help converged strategies to evolve.

'With 10 versions of transmitting voice and data, the chances are that convergence is going to be driven by software,' he says.

Microsoft used the 3GSM show to launch its Communication Services Framework (CSF).

CSF acts as a middleware layer, separating existing infrastructure from new services built for users, which will allow existing providers to capitalise on emerging mobile technologies.

The involvement of major vendors such as Microsoft and IBM at the infrastructure level will help operators move beyond traditional products and services, facilitating the convergence of fixed or mobile offerings through access to legacy IT systems.

BT is one of Microsoft's first CSF customers. The development of middleware components is helping the company become a mobile virtual network operator, with CSF helping existing systems to support GSM communications by adding new service-enabling software, says Steven.

Vodafone is providing BT's mobile users with airtime on its network, but BT will be responsible for branding, handsets, billing and customer service.

The growth of mobile communications has put considerable pressure on fixed-line operators such as BT.

According to telecoms regulator Ofcom, UK consumer spending on mobile voice and text services was £1.8bn in the fourth quarter of 2003, outstripping spending on fixed-line rental and calls (£1.7bn) for the first time.

Research from analyst Informa Telecoms & Media suggests this is forcing fixed-line operators to seek alternative revenue sources from mobile communications.

'This trend has forced fixed carriers to raise their game, with the result that a growing number are now developing mobile strategies,' says Informa contributor Shani Raja.

Fixed operators tend to own the supporting infrastructure for IP-based wireless communication technologies such as voice-over IP, while mobile operators own the GSM infrastructure.

The ability of 3G to support mobile or portable voice, images, data and video communications at up to 2Mbits/s (with local area access) or 384Kbits/s (with wide area access) enables operators to collaborate with network carriers and content providers to offer services such as streaming video and music.

And most of the new services such as video calling, video on demand and mobile electronic payment are based on 3G networks and compatible handsets.

But companies such as BT are also investing in infrastructure that they hope will enable them to capitalise on the growth of new higher-value services, beyond the investments of mobile operators.

BT last month completed the latest phase of its plan to launch what it claims will be the 'world's first fully-converged fixed-mobile service', by linking its virtual mobile network service to its broadband infrastructure.

The company's Project Bluephone aims to deliver a mobile handset that connects via Bluetooth to a broadband access point, but switches seamlessly to a GSM network during a call once the phone moves out of range.

'BT's vision for the future is one where you will be able to access all your applications on your choice of device, utilising the best network available,' says Steve Andrews, BT Group chief of mobility and convergence.

And analysts predict BT will not be the only telecoms supplier to make such a move. Analyst Gartner says: 'More providers will launch converged services in 2005.'