TelstraClear head Allan Freeth says telcos must move toward providing tailored services – a consumer dream – as the data explosion gains momentum.
With the continued growth of mobile devices, he says data communication will eventually replace video calling. And that means telecommunication companies, including TelstraClear, will have to start billing consumers based on their data usage rather then how many minutes they've used.
“The telco market must move from operating as a technology-based commodity to a tailored service offering.
“Both parties need to agree, and prove, that telecommunications is a solution and not the problem.”
Freeth says consumer demand for data is increasing faster than the cost of the technology to run internet providers is decreasing and ISPs will need to become more innovative with the technology they do have.
“Add increasing demand for higher data caps and lower monthly access charges and telcos are trapped in what WWII generals would
recognise as the classic pincer movement.”
While speed is important, content is paramount, according to Freeth.
"As New Zealand rolls out the government’s ultra-fast broadband, the question about what it will carry will finally become paramount," he says.
“Content innovation and the freedom and ability to access it will start to matter greatly. To quote Bill Gates: The most important speed issue is often not technical but cultural. It¹s convincing everyone that the company's survival depends on everyone moving as fast as possible.”