The communication industry has returned to profits, but Internet technological breakthroughs are putting the role and business model of traditional telecommunication companies at stake, creating pressure for the development of new regulatory approaches. This is highlighted in the 2005 Communications Report, recently published by the Organization for Economic Cooperation and Development (OECD).
The OECD report considers the growing popularity of Voice over Internet Protocol (VoIP) as a threat to traditional local fixed telephone operators’ profits, namely on international calls, underlining that VoIP technology is also challenging mobile operators.
Considering future perspectives, OECD suggests that the new services of traditional companies, such as wireless Internet (Wi-Fi) connection spots in cities, will be an additional competition factor to mobile operators rolling-out 3rd generation connections.
The report also contains other predictions: the growth in the offer of packages integrating voice, data and video services into one single service; the re-evaluation of current regulatory frameworks, motivated by competition from new technological platforms, especially broadband Internet. Regarding the latter, it refers the possible revision of universal telecommunications service requirements, since there is a growing number of companies offering VoIP with no physical presence in the country where they offer it.
Further information:
- OCDE - Divulgação do relatório http://www.oecd.org/document/57/0,2340,en_2649_33703_33950905_1_1_1_1,00.html
Related information on ANACOM's website:
- OECD - 2004 Information Technology Outlook https://www.anacom.pt/render.jsp?contentId=248225
- General framework https://www.anacom.pt/render.jsp?contentId=106454
