Telcos alerted to business benefits of IP

Telecommunications providers need to embrace the business benefits associated with establishing Internet Protocol (IP) networks rather than just focus on the technology issues, industry sources told Computerworld.

According to Ernst & Young partner John Edwards and Cisco marketing development manager Alain Mignot, the move by telecommunications providers to build IP networks is more than just a technology shift.

"[It's] not just a change in transmission technology, but it actually brings a fundamentally different way of doing business," Edwards said.

IP technology, according to Edwards, will enable carriers to provide a new range of self-activated and real-time services to customers.

However, carriers face the danger of failing to address the business processing issues brought about through IP, Edwards said.

According to Mignot, many carriers are now upgrading their networks to IP, but "very few have yet to embrace the implications in terms of business processing".

Telcos talk in terms of IP as a technology, Mignot said. "They haven't seen IP as a business interface."

Edwards also warned that if telcos fail to address the issue, competitors and other industries would.

"IP enables other industries to provide the services traditionally supplied by telcos," he said. "A whole new raft of service providers could emerge."

Edwards and Mignot will be presenting a seminar on IP and customer relationship management at Now 99, the Australian Telecommunications User Group (Atug) annual conference to be held in Sydney May 17 to May 20.

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