Convergence & Network Ownership

Merging wireline and wireless networks, and collapsing various wireline assets, to whatever extent possible while allowing the same services to be delivered over multiple networks/endpoints when desired is one key tenet of this ATIS convergence effort. However, to what extent can convergence happen in cases in which the service provider doesn’t own all the network assets?

This question would apply to all four of the telcos central to this ATIS convergence work. All three of the former RBOCs resell DIRECTV. And, for wireless, BT relies on Vodafone, Qwest resells Sprint (for the moment) and Verizon shares Verizon Wireless with Vodafone. But while these companies are trying to whittle down the multiple overlay networks they do have in place, they emphasize that convergence is about more than just the physical networks.

“Convergence is not about the deployment of technologies in isolation, but involves integrating communication services with existing applications — that is why we are a Wi-Fi leader, through initiatives like Wireless Cities and BTfon, and have an MVNO agreement with Vodafone,” said BT CTO Matt Bross.

“BT’s agreement with Vodafone was designed with convergence in mind and has all the flexibility required to innovate and benefit from new technologies going forward. BT does not need a mobile network given these arrangements. Our relationship with Vodafone UK goes way beyond the normal service provision/reseller deals, and we are uniquely placed to offer our customers real converged solutions by linking the Vodafone capability with our own in BT. We showed this with the world’s first, fully converged fixed-mobile service, BT Fusion. We are currently trialing the next generation of Fusion-style devices. Wireless broadband is at the heart of BT’s convergence strategy.”

Pieter Poll, vice president and CTO at Qwest Communications International Inc., responded that one of his company’s strategic pillars is partnerships. “So we have a fundamental belief that Qwest as a company doesn’t need to go out and build the seventh or eighth wireless network in this country in order to play in the wireless industry,” he said.

Mark Wegleitner, senior vice president of technology at Verizon Communications, meanwhile, told xchange the fact that Verizon is not the sole owner of Verizon Wireless does not impede its move toward convergence. “The processes to do it are somewhat different because there’s another key stakeholder that needs to be considered in making those decisions, but I don’t think it will have a technological effect.

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