More companies seen to converge telecom, IT services

More and more companies will be converging as the boundaries that used to separate telecommunications, information technology, and cable television start to disappear.

With Internet technology, services that used to be the domain of telecommunications are fast becoming that of IT. Voice services can now be transmitted through the data network, which allows companies to avail of both services at a lower cost using a single network.

For instance, the Lopez Group has functionally merged the operations of its telecommunications company Bayan Telecommunications Inc. (BayanTel) and its cable television company SkyCable to create its Integrated Broadband Services Group or IBS.

According to Benpres Holdings Corp. chairman and president Oscar M. Lopez, they will use IBS to make content provided by ABS-CBN and its other new media companies available to corporate and consumer or retail clients.

Lopez said many companies in the US and Europe offering cable television, Internet access, and telephony as different industries have started to merge, with cable companies merging with traditional phone companies and with broadcast companies joining forces with cable companies.

"The permutations and combinations are many," said Lopez, whose Benpres Holdings owns ABS-CBN, SkyVision (SkyCable, SunCable, SkyInternet, and ZPDee Cable Internet), and Bayantel among others.

All of a sudden, traditional telephone companies have found themselves divested of traditional profit centers, he said, emphasizing that in order not to be declared economic and technological dinosaurs, they should adopt new technologies in order to offer new services.

Right now, one can use the e-mail to communicate abroad at practically no cost. Also, by using the voice over internet protocol, one can actually make overseas long distance calls, often for nothing in some web sites.

Just last week, the group launched the fusion of its four communications services – BayanTel, SkyCable, SkyInternet. And ZPDee. With this, a single wire into the consumer’s home or office will now be able to provide not just entertainment on traditional cable television, but also broadband access to the Internet and in some areas, including telephony.

Lopez said a single subscription and a single bill also spells savings and convenience for the consumer.

Fusion, as the converged service is called, is the first step into a world where concepts such as intelligent homes and offices where appliances are able to communicate with each other and can be programmed to anticipate the customers needs exist.

Carlos Tria, IBS managing director, said the move is in line with the group’s vision to set the standard for converged services in the industry. "We are actually offering this at the same time or even ahead of other technologically advanced countries in the world," he said.