Confusion, denial and anger: The response of the telecommunications industry to the challenge of the Internet

Richard Feasey

Telecommunications Policy, 2015, vol. 39, issue 6, 444-449

Abstract: The author discusses the impact of the Internet on the telecommunications industry drawing upon own professional experience of the past 20 years. Applies the Kubler-Ross model of grieving to argue that telecoms operators have moved from denying the disruptive power of the Internet, to anger and then to adaptation of their own business models and acceptance of the Internet. Highlights fundamental differences in approach to competition, interoperability and innovation. Discusses failure of ‘walled gardens’, attempts to block VOIP and proposals for ‘data termination rates’. Argues that telecommunications operators must consider Internet services as complements not substitutes and adapt business models accordingly. Concludes that European telecommunications operators have been slower to understand this than those in the United States.

Date: 2015
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Citations: View citations in EconPapers (6)

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DOI: 10.1016/j.telpol.2014.08.007

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