June 14, 2012
Our new chapter on the redefinition of technology business models is available online at Nova Science Publishers.
Notre nouveau chapitre sur les modèles d’affaires en technologie est maintenant disponible en ligne.
Rethinking North American Telephony Business Models in the Age of Turbulence
By : Louis Rhéaume, TELUQ and Infocom Intelligence; Dr. Yves Rabeau, UQÀM
Date, June 2012
Since the mid-90’s the telecom industry went into a period of sustained disruptive innovations which combined with deregulation led to a lot of turbulence and a sometimes difficult redefinition of business models. A true Schumpeterian wave of innovation enhanced by competition leads to creation of wealth as an unprecedented investment boom occurred in telecommunications sustained by overly optimistic and sometimes fraudulent forecasts of Internet traffic. But it also led to wealth destruction when the financial bubble ended in a stock markets crash in 2000, whereas several telecom companies went bust weakened by debts, substantial overcapacity and a loss of market power. It then became clear that traffic growth did not translate necessarily into revenue growth. As overcapacity eased in the 2000’s and telecom companies painfully restructured, the wave of innovation went on. Particularly, VoIP definitely made long-distance wireline service and dial-up ISP commodities. The telephony industry is moving from a transport sector toward a service sector as information technologies are at the heart of all business models in the world economy.