An authoritative new global study has pinpointed broadband as the
key to in the e-economy in years to come.
Hassan MahamdallieThe study entitled, "Business Redefined: Connecting Content,
Applications, and Customers" by management and IT consultants Cap
Gemini Ernst & Young, is based on 128 in-depth interviews with
chief executive officers (CEOs) and executives in the
communications, entertainment and enabling technology
industries.
When asked, "How will customers experience
entertainment/communications differently in the near future?" some
64% of the executives interviewed cited broadband as significant.
Wireless Web was highlighted by 23%.
One executive said, "Broadband will be everywhere, and it will
be reliable, available, and low cost."
The report also pinpointed three hurdles to a mass expansion of
broadband: Internet penetration, problems of roll out and a
recruiting a skilled workforce.
The study says, "Metered access tends to inhibit Internet
adoption, whereas unmetred local telephone access tends to
accelerate it. Nearly everyone has universal unmetered Internet
access in the US, which is the main reason why that country's
broadband adoption rate accelerates first."
Many of the CEOs interviewed were frustrated that roll out of
local broadband is being held back by the inability to "get our
back office to keep up". In Britain many potential providers have
pulled out of broadband roll out blaming BT's lack of enthusiasm in
opening up local exchanges to its rivals.
As ever, skill shortages loomed large on the executives'
consciousness. The report highlighted an "intensifying battle for
talent" with one CEO commenting, "The only sustainable competitive
advantage is the team you build."
The study shows that many executives of big communications and
entertainment companies are worried about the threat of start-up
competition. Last year there were nearly 1,500 new competitors in
the US, nearly 500 in Germany and 200 in Britain.
One CEO remarked that, "slow incumbents with a huge customer
base find that base is being eaten by nimble, flexible players."
This is leading to loss of market share. In Hong Kong, for example,
the biggest incumbent provider went from 100% market share in 1995
to 61% in 2000.
The study highlights the development of content packagers. These
companies consolidate and organise "the overabundance of available
information and entertainment choices" and filter it through a
productive user interface. Cap Gemini Ernst & Young predict
that, "Positioning yourself effectively in this arena could become
the key driver of future success."
- The report interviewed 128 CEOs and executives from around the
world, including Howard Stringer CEO of Sony Corporation of
America; Ken Cooper of Warner; Harris Jones of One 2 One; Paul
Smits of KPN, Royal Dutch Telecoms; Jens Alder of Swisscom and
David Elstein of Channel 5 TV.
- Business Redefined: Connecting Content, Applications and
Customers, Cap Gemini and Ernst & Young.