What Up? - Commentary - Editorial

Telecommunications Americas, June, 2003

I've been asked the question more than once over the past few months, by equipment vendors, service providers and consumer conversation makers of all types: What are you excited about in these trying telecom times? While I like to think Telecommunications(r) magazine's coverage accurately portrays what our editors think are the most intriguing industry issues, sometimes it's the case of so much going on and so little time.

So here are a few things that have raised our interest:

* Service providers are once again focusing on the enterprise. I am not a super early adopter, but never the last person on my block to have a new service. I have broadband, I have wireless. I could get mobile wireless data if I thought I needed it. I can get Wi-Fi if I ever have the urge to drink coffee (I do not) and surf. I have TiVo and call blocking. I don't have time for video on demand or music downloads. I'm all set--at least for now. Consumer services are comparatively low margin and I'm surprised, quite frankly, that service providers have dallied with us for as long as they have. With all of the exciting, new (not to mention higher-margin) opportunities in the enterprise sector- think hosted voice services and VPNs--I'm glad service providers are making that a high priority. Michael Kennedy of Network Strategy Partners has a slightly different view in his column "Consumers to the Rescue" on page 10.

* Technology development hasn't disappeared. Yes, the free-flowing capital markets are down to a trickle. Yes, providers are trying to enhance their existing networks at the cheapest cost possible (from both a capex and opex perspective). Yet innovation and building for the future hasn't disappeared, the focus has just been shifted. Check out our Hot Start-Ups on page 20 for further validation.

* Competition is alive. While the competitive market isn't as lush as some might like, some new providers have managed to find their niche and make a business model work rather well, thank you very much. RHK analyst Roz Roseboro showcases three of them in her article "Learning from the Little Guys" on page 37 and urges incumbents to take notice.

* Municipalities are taking matters into their own hands. Ignored by the big guys? What better way to show them than by giving them a run for their money? As Staff Editor Sean Buckley shows in "FTTH: Ready to Roll?" on page 15, municipalities such as Chelan County, Wash., and Kutztown Borough, Penn., are some of the more happening places in North America--at least when it comes to telecom.

Sue O'Keefe

Editor in Chief