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One of the great challenges has been to conceive a business model for next generation telephone companies. This is constrained by their limited core competences which do not match well with many of the opportunities that lie in entertainment and complex/customised bundles for consumers.

Frost & Sullivan, a leading firm of industry analysts, notes the enthusiasm of service providers to offer connectivity, entertainment and information services, within a digitally connected world. It identifies Orange (a.k.a. France Telecom) as a "good example" of the benefits of alliances, which has "deepened" consumption of television and media. Orange has a multiplatform strategy, with plans to increase interactivity. Ultimate, Frost believes Orange is well placed to generate third party revenue streams. However, successful transformation requires collaboration to offer services which consumers need and for which they are willing to pay.

Frost & Sullican noted the "desperate need" of service providers to secure a sustainable revenue source from their existing consumers. Beyond quadruple play, service providers will require significantly more alliances and a richer eco-system for connected homes. For the present, all that has been seen are the first steps in this direction.

See the press release: Opportunities Beyond Quad Play Depend on Successful Cross Industry Alliances, Says Frost & Sullivan

By Ewan Sutherland, Telecommunications Policy Analyst. Visit the blog maintained by Ewan Sutherland here.

Related topics: Access Providers, Broadband, IPTV, Mobile, Net Neutrality, Policy & Regulation, Telecom