"Is Google Going to Capture Telephony?"

[Clifford Holliday]

March 27, 2009



IGI Consulting Announces New Report - "Is Google Going to Capture Telephony?"


"Telecom Business Transformation" is a big topic worldwide in these turbulent economic times. Many carriers and manufacturers are in the process of transformation projects. One of the outcomes of such projects must be a vision or plan for that company’s next-generation network. Information Gatekeepers Inc. (IGI) is starting a series of reports on Telecom Business Transformation that will consider many aspects of the transformation process, including the planning environment, goals setting, the next-gene! ration network, the next-generation network technologies, and next-generation vendors. One of the first things necessary in any such effort is an understating of the market facing the telecom company. Therefore, IGI is proud to announce the first report of this series; “Is Google Going to Capture Telephony?” This report will review the many aspects of the current telecom market in the USA, including the recent announcement of Google Voice.

Although this report will consider several important market impacts, the most current is the announcement by Google of Google Voice. For some years, IGI, as well as others, has been watching Google for an entry into telecommunications. Most of their business is telecommunications based, so it is a natural fit. An earlier IGI market report predicted the rise of a class of “super competitors” to the RBOCs, led by Google. That still is a good forecast, and it is beginning to happen with Google.”

This series of reports is being prepared by Clifford Holliday, a writer and analyst for IGI. His many previous projects have included the massive Lightwave Series of Reports, the recent ROADM Series of Reports, and the AAA Series of Reports. Mr. Holliday spent many years as the VP in charge of technology planning in the Business Development department of GTE. He was involved in or led at least seven different major "transformation" projects (including “PIP” — Performance Improvement Projects — Winning Connection I and II, WINS, and Technology Reorganization).

Mr. Holliday explained, “In 2007, Google purchased a small startup called Grand Central. Grand Central provided a service that allowed calls to follow a user to different phones, and visual voicemail. In early March 2009, Google announced that it had now rebranded the service to Google Voice and added a number of new features. Early reporting on the features included free calling within the United States, extremely cheap international calling, and many advanced call- and phone-management capabilities. Although not yet available to the general public (it is said that it will be in a few weeks), the threat is clear. Google is indicating that it will give away the entire voice business (at least within the United States) just to get an added advertising platform. How big a market can we expect for Google Voice? Is this a threat to mainstream telephony? What are than main issues impacting the telecom market today?”

This report will attempt to answer these questions, in the broader context of the overall competitive environment of U.S. telephony today. In addition to the “super competitors,” IGI feels that the following are the major issues in today’s competitive structure in telecommunications:

Telcos become wireless, rather than wireline companies;

The Advanced Access Architecture deployments being undertaken by the major RBOCs and many smaller telcos;

Overbuilding by major telcos;

The emergence of the “super competitors.”
This report will address each of these areas and provide forecasts as to IGI's expectations for each. Because of the overriding importance of the state of the U.S. (and world) economy, the report will begin with a review of IGI's forecasts for the nation’s economy as well as its impact on telephony.

Mr. Holliday concluded, “We look forward to serving a telecom market in 2009 during these difficult times, and in the years to come, no matter the structure. We hope that all of our readers participate in the economic recovery!”

The chart above shows a view of the emerging competition. Don't miss this opportunity to see what the telecommunications industry will look like in the near future.

For more information on this report, please visit igigroup.com or contact:

Dr. Hui Pan
Information Gatekeepers Inc.
320 Washington Street, Suite 302
Boston, MA 02135
617-782-5033, Fax [phone]
[e-mail]








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