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

How Online Video Exceeded Pay-TV Revenue

The global streaming industry has spent the better part of a decade chasing subscriber counts as the primary metric of success. That era is now formally over. New market data from Omdia confirms that the industry has crossed a decisive threshold; one that shifts the competitive playing field from growth-at-all-costs to monetization discipline. For senior executives navigating media, advertising, and technology strategy, the implications extend well beyond entertainment. A Historic Revenue Crossover Online video revenue increased 13.5 percent to $176 billion in 2025, while pay-TV revenue declined 4 percent to $170 billion; marking the first time in the industry's history that streaming has surpassed legacy pay-TV in revenue terms. This is not a rounding error or a statistical artifact; it represents the culmination of more than a decade of structural disruption to the traditional broadcast and cable TV model. Global subscriptions to online video services reached 2.24 billion by the ...