Skip to main content

Convergence is About Confusing Technology

International Herald Tribune reports that for European telecommunications companies, marketing used to be fairly simple. Back in the days of state-sponsored monopolies, they didn't really have to do it at all. Then, when telecommunications markets were liberalized, new brands sprang up, each selling a specific service to consumers: Orange or Vodafone became synonymous with mobile networks, Tiscali and Wanadoo with Internet access, for instance.

But now things are more complicated, as telecommunications providers aim to sell a new, less palpable idea called "convergence." This concept took a step forward in France and Britain when a diverse range of France Telecom units, including mobile, broadband Internet and business services, "converged" under the Orange brand name.

Of course, many other operators are piling in with converged offers of their own. From a marketing perspective, convergence might seem like a no-brainer. Instead of forcing consumers to deal with different providers for fixed and mobile calls, broadband access and pay television, it allows them to write one check and deal with one customer-service team for complaints. Yet the selling of convergence has not been as seamless as it might seem.

The biggest problem, analysts say, is that telecommunications executives are mostly programmed to think about technologies, rather than consumer benefits. So when technological options multiply, telecommunication companies see new opportunities, while consumers just see a proliferation of jargon.

"If you're in the industry, you love this kind of thing," said Mike Cansfield, head of telecommunications strategy at Ovum, a consultancy. "But telcos have to learn how to articulate what these things mean and what the benefit is for a consumer - be it at home or in business."

Popular posts from this blog

Product Design AI to Reach $4.3 Billion by 2035

Artificial intelligence tools for product design have largely been sold to engineering leaders as a productivity story: faster renders, quicker iterations, fewer manual CAD operations. According to the latest market study by ABI Research, the market for artificial intelligence in product design is set to grow from $628 million in 2025 to $4.3 billion by 2035; that's a 21.3 percent compound annual growth rate. The trajectory reflects a market moving past assistive tools and into a phase where AI becomes structurally embedded in how products get engineered, simulated, and validated. For executives overseeing engineering, product development, and R&D organizations, this is no longer a tooling decision. It is a competitive positioning decision, and the window to shape it is narrower than most roadmaps assume. The Ten-Year Growth Outlook Mechanical product design and simulation is the AI beachhead within manufacturing. A full 62 percent of manufacturers are already running AI projec...