Telcos and their infrastructure suppliers need to invest outside of the box(es) in advertising if they are to stand a chance of weathering a fragile-as-black-ice economy that’s been hammered more than all of Rocky’s ringmates combined.

Why advertising? And why now? Because telcos typically cut capex in tough economic times – traditional network infrastructure spending, specifically. By introducing the advertising revenue river to telco and web TV providers, you end up with a return-on-advertising (ROA) that’s quicker and more impactful than switches and routers’ ROI.

TV providers, especially telcos, have been largely passing along ads that come with the content they aggregate, rather than getting money from selling spots themselves. That leaves them to rely on TV pack subscriptions, pay VOD and device rentals for their revenue.

That ain’t gonna be enough to weather much of any menacing economic storm.

But don’t take it from me, consider the facts. In the last few weeks alone, Cisco Systems Inc. (CSCO), Comcast Corp. (CMCSA) and Intel Corp.'s (INTC) capital unit, three huge players in their respective fields, have invested in BlackArrow Inc., Zvents and thePlatform, all of which are squarely in the ad business.

And in the last six months, Microsoft Corp.’s TV unit and Alcatel-Lucent have detailed plans for ad systems designed to let operators sell their own ads and manage their own inventories of national, regional and/or local ads.

The ROA on ads is huge. Just ask any of the large cablecos how many hundreds of millions they already make on selling ads per year. Then remember that they’re teaming up in the Project Canoe venture to sell ads across their collective regions.

And please don’t forget the Web and wireless. Online portals are finally getting the tools they need to switch revenue models from content syndication to actual ad sales. Wireless operators are staring to see multiplatform ad systems that enable mobile ads.

Network foundation technology is always a big need. But in the toughest economic times, look to investments that bring in Benjamins, such as advertising, over ones that bring in bulk bandwidth.

Stay tuned.

At present, the key to both Web behavioral ads and those you could receive on your TV is whether you decide to let operators use your personal usage data from their Internet or IPTV services.

AT&T Inc. (T) and Verizon Communications Inc. (VZ) last week said they would give customers a chance to opt in or opt out of any possible behavioral advertising efforts that would be fueled by their Web usage information. Alcatel-Lucent (ALU) Monday announced a planned advertising system for IPTV providers that lets subscribers opt in or opt out of personalized ad efforts using their data.

So with the opt-in option critical to the success of these efforts, I’m waiting to hear what, if anything, ISPs and IPTV providers plan to offer me for use of my usage data or other specific information that’s already being collected.

I’m not sure where to start the bidding!

And I seriously doubt my information is either private or anonymous. Perhaps about as secret as the answers I’d give in a survey that contains my residence, age group, gender and ethnic group.

In fact, I remember a fellow co-worker being told a company survey was anonymous. Corporate headquarters sent it back to him after he failed to answer one of the questions.

The question, though, is really, “What will you give me for it?”

Nothing is free and the value of the data operators seek is pretty high.

And what if a high volume of people opted out? I can imagine some knock off of the famous Do Not Call list (that pretty much shut down the telemarketing industry) needing to be formed for those not interested in having their personal data used.

Who would keep and maintain that infrastructure project?

It seems to be something of a Catch-22 with people hating most ads because they’re not personally relevant. But to make them relevant, operators need personal information/usage data that consumers may not want used in these efforts.

In closing, we need information on at least two fronts before opting in. What do I get for your use of my info? And where do all the other operators and Internet companies beyond AT&T and Verizon stand on this hugely important issue?

Stay tuned!

Once upon a time, a company called Northern Telecom Inc. was a thriving telecom infrastructure provider of gear for enterprises and service providers and a general major force to be reckoned with. No, this isn’t fiction.

Now, many years later, I reckon, it’s really hard to tell what and who’s left at the long since-renamed Nortel Networks Corp. (NT). Last week they decided to sell their metro Ethernet unit and assets  this after other dizzying decisions  including high-level personnel changes, in 2008 and before.

Some company execs tried to convince me last summer (2007) that Nortel was a major player in IP video services delivery, but I don’t remember receiving any proof. And given the clear-as-day video assets of multiple rivals, the situation just got more muddied.

So what’s the future now? Broadband wireless? Who isn’t planning on some piece of that business? Talk is cheap.

Nortel is still kicking butt in the enterprise telecom products front ... but beyond that longtime bastion...

It used to be second nature to equate Northern Telecom with a series of popular, globally used, telecom product lines on the enterprise side and on the carrier side.

Reasons and excuses aside on the business and marketing front, why did such stunning clarity turn into such stunning confusion (and uncertainty)?

All we can do, apparently, is stay tuned.

Industry watchers are unclear on the latest Nortel business decision. I’m just hoping the company decides to return to real relevance and to being a feared danger to rivals instead of just itself.