ENTERTAIN US

With all the expected hype, the video iPod was officially launched earlier this month. Using a combination of Hollywood (or at least MTV) and techno-geek, Apple joined the growing ranks of consumer electronics manufacturers that are finding ways around the traditional distribution of media content to the consumer.

Instead of relying solely on big cable and satellite networks to reach into homes, many content owners increasingly are viewing products like the video iPod, Akimbo and Slingbox as a new means of getting from the studio to the living room. Telcos have a unique opportunity in this environment but have yet to establish themselves as players. If carriers expect to be taken seriously in their transformation from voice service providers to entertainment companies, that has to change.

There are encouraging signs that it's starting. BellSouth's decision, for example, to join SBC Communications and Verizon in offering Yahoo-branded Internet access service is the type of agreement that could launch thousands of entertainment possibilities. But it's just a start, as are the agreements by many carriers to link directly into Internet movie distributors such as CinemaNow and Movie Link.

Being recognized as a mover and shaker in the greater entertainment realm will require telcos to move beyond delivering movies to a desktop PC at very fast speeds. Yes, it is feasible to use a laptop as a storage device and show those movies on the living room TV, but the vast majority of consumers simply won't go through the hassle of buying the right cords and linking a computer into their entertainment system.

To take on the mantle of entertainment provider, carriers must, to use a completely overused cliché, truly think outside the box. As they sign agreements with cable networks for carriage on their IPTV systems, would it not make just as much sense to begin talking about alternative distribution methods? Instead of simply offering a company such as Turner another way to get into users' TVs, why not at least start talking about a richer set of viewing experiences such as those offered by portable devices?

To be fair, some carriers are beginning to think along those lines, but far too many are still stuck in the silo mentality where what happens on the other side of the business stays on the other side of the business. And one certainly couldn't blame telco executives with long memories for hesitating when it comes to getting in bed with entertainment companies (remember the grand plans of Americast and Tele-TV?)

However, if telcos are to move into the next decade as providers of the triple- or quadruple-play bundle, they must begin to forge those types of partnerships that are mutually beneficial to both carrier and content owner.