The new Communications Age

The increasingly critical role that information plays in our daily business and personal lives has led many to believe that the true Information Age has arrived. But in reality, we're on the verge of entering a new age-the Communications Age.

Improvements and integration in daily lives provide the foundation for the creation of the world's ages.

Many years ago, life was simple. Sustaining life through farming natural resources provided the basis for the Agricultural Age. Later, tools and machinery improved the agricultural process. While manufacturing initially was a small part of the Agricultural Age, it became an age itself as manufacturing became more integral and necessary. A similar evolution occurred with the Information Age, born from the Manufacturing Age.

The primary directives of the Information Age were information gathering and problem solving. In the Information Age, we developed software applications and learned to use mainframes, computers, hand-held electronic devices and other intelligent hardware.

The Communications Age will center around sharing information effectively. In its most basic form, it represents the breakdown of geographic barriers in information sharing.

In business, employees no longer have to be collocated in the same office. Through advances in telecommunications technologies and the introduction of remote access, Internet, virtual private data networks and packet-based broadband services, a company's employees can operate from almost anywhere in the world. This environment offers benefits by increasing a company's geographic presence and by improving sales, customer support relationships and employee satisfaction.

The "networked economy" represents the cornerstone of the Communications Age.

The networked economy offers no clear definition between the network, the business, the household or the individual. In a networked economy, communications systems are integrated into all facets of life. As the networked economy evolves, "third-stage" technology integration occurs, meaning the network and its underlying technology are invisible to users.

Glimpses of a networked economy are evident in some of the government's initiatives and plans, as well as in applications being developed in the private sector. Additionally, the Internet's ever-increasing rate of adoption by the mass market will turn the vision for a networked economy into a reality more quickly.

The Communications Age will force a change in telecommunications carriers' strategies. Carriers will need to make strategic decisions whether they want a direct interface with the end user of the networked economy or whether they want another company that serves the private or public sectors to manage such applications. Carriers of the first type are generally referred to as "service providers," while carriers of the second type are "supercarriers."

Supercarriers will provide infrastructure-based services but will be virtually invisible to end users. Supercarriers leverage one service to address many markets and reuse resources to lower unit costs. This requires an extensive and highly efficient distribution channel to reach market segments.

On the other hand, service providers offer integrated vertical solutions and niche market services. Service providers need extensive knowledge of niche and vertical markets, as well as the vertical integration of transport, hardware, software, applications, content and customer support.

The long-term success of a supercarrier strategy in the Communication Age appears questionable because service providers will be able to more easily replace supercarriers. We've seen a few carriers develop strategic plans to make the shift to a service provider model. Have you seriously considered how you can ensure long-term survivability in the Communications Age?