Source in the News
A Look Back over 35 Years
By David Potter, founder, president and chief executive officer, SOURCE Inc.
As seen in the April/May 2006 issue of Telecom Reseller
The communications industry continually evolves through phases of deregulation, new technology and economic impact. Over the past 35 years, the landscape of the industry has changed so drastically that companies must adapt and change to simply survive.
Although the names, CEOs and technologies of many leading companies have changed, the mindset of indulgence without consequences hasn't. Guaranteed rate of return is no longer applicable, especially in the IP world, where many years ago there was only one way to 'reach out and touch someone.'
The introduction of the Carter Phone was the 'beginning of the end' for the Bell Companies and the precursor to divestiture. However, the recent mergers and acquisitions of the industry make us wonder if the executives have learned anything from the past. Guaranteed rates of return for the Bell companies ensured a solid bottom line and an ROI on infrastructure investment. Following divestiture, the resellers of the 1970s and 1980s simply sold for less and dissolved the financial foundation of the Bell dynasty.
Now, at&t and BellSouth have announced their agreement to merge the two companies. The result will be a large company with an antiquated management strategy based on reduction of headcount. It appears they haven't even recognized that they have assets with a value that is far less than stated, due to obsolescence and new communication technologies such as VoIP. Perhaps even more alarming is the failure of one of the nation's largest companies to recognize the demise of wire-based networks being replaced by emerging IP Telephony applications.
Those that will survive the next 35 years must utilize technology to meet customer demands. Technology will drive operational efficiencies by providing best-in-class customer service, asset/equipment tracking and centralized operations, thus powering a company's ability to react quickly to customers.
The future is filled with incredible technological advancements for connectivity. IP Telephony provides limitless applications never before possible with a switched network architecture. However, CEOs and innovators (a few from the past 35 years) are the catalyst to success. Be a first adopter, be open-minded, and be agile.
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