Anonymous

Brussels

Senior partner

Is triple/quadruple-play driving Internet system provider out of business?
The ISP business model was based on two main revenue streams: interconnect fees and web site hosting services. But with the pressure from regulators to cut interconnect charges and their rivals aggressively reduce web site hosting tariffs. As a consequence ISP’s are finding their margins squeezed. What’s more: network operators are now focussed on deploying triple/quadruple play services and their also buying ISP’s, in order to acquire new subscribers and utilize the brand name.

Furthermore ISP’s chances of survival have also being dealt yet another blow, as Internet users demand access to prime content. But as they don’t have the buying power, so they can’t therefore compete with the likes of Virgin or Vodafone ‘Live’

As more ISP’s are squeezed out of business by telecom conglomerates aggressively buying ISP’s or consolidating by acquiring their competitors; it will only be a matter of time before the industry will be dominated by a few players providing Fixed-Mobile Convergence services.

The EU liberations directive of the 90’s seem to be under threat as consolidation reduces the number of major players, and thereby creating monopolies that will control the whole industry.
I was under the impression that the idea behind liberating the telecom sector was to give subscribers more freedom of chose… More…

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