The Incumbent Challenge
The Flat World forces have caused huge entry, sustenance and growth barriers in this industry to drop, leading to a plethora of competitive elements and consumer alternatives for "staying connected".
Internet Protocol (IP) technologies are flattening the core of the industry’s model. The new technology platforms are really leveling the playing field for deploying cheaper innovation faster, and by smaller players.
At the same time, consumer awareness is flattening the consumption edges of the industry. For instance, haven't you, the consumer, become more aware of what's behind the firewalls? More demanding of the converged services you desire? Don't you crave a service provider that can change as fast as you?
I think these trends have fueled the accelerated deployment of new innovation and the convergence of hitherto distinct businesses - communications, broadband, broadcast, entertainment and technology.
And all of this did not happen overnight! Rather, over the last decade or so, they have happened in iterations as the industry went through a roller coaster. Just when the telcos replaced dial-up with faster ADSL, cable companies entered the voice and internet access markets. Even as telcos close nationwide content deals for their new video services, the nature of broadcast television is shifting to more personal and community content on TiVos and youTube. The turns are getting faster, steeper and closer to each other, causing even more disruption to known orders.
It's forcing the incumbents to behave like challengers.
