Saturday, June 11, 2011

Deutsche Telecom Also Cooperating with Google - Is it the QoS Era Already?

After France Telecom CEO clearly sates he is willing to share revenues with Google (here), Reuters reports that Deutsche Telecom is also heading towards an agreement with Google and YouTube.

Jonathan Browning and Matthew Campbell report that spokesman Philipp Blank [picture] said "Deutsche Telekom plans to introduce various levels of connection quality to manage the surge in data traffic and enable high-bandwidth services such as video conferences and tele-medicine.. The Bonn- based company is also tripling the capacity of ports that connect its network with that of Google over the coming weeks to eliminate a bottleneck that slows down service".

A year ago, René Obermann, Deutsche Telecom's CEO said that "OTT providers should pay for High Quality" (here). It maybe still the case, although we saw that FT is willing to do just the opposite.

So the European Telecom giants seem to be pretty sure they can up sell for QoS! Good news for the DPI/PCRF industry!

This also fits the "bottom line" recommendation of Tole Hart (picture), senior analyst, Yankee Group: "OTT providers are taking away TV subscription and voice revenue from service providers. Service providers can use service and applications to improve the customer experience, remain competitive and gain additional revenue .. carriers must rethink how they offer services and applications so they can once again be a key element in the user experience" - see "Creating Customer Value in the Anywhere World" - here.
Back to the Reuters story, YouTube in Network Deal Talks With Operators, Manufacturers (here), "Google's YouTube division said it is in talks with all major mobile operators on an agreement to pool efforts to reduce the impact of video content on telecommunications networks" and mentions in addition to the German and French incumbents Telefonica and Vodafone - however without a specific reference of Google cooperation.

Richard Feasey, Vodafone public policy director, explains the network-content provider eco-system (or win-win chance): “You hear the content industry say they struggle to make money with piracy and so on, while we have challenges with the investment requirements versus the revenues Everybody faces a challenge in the long run .. One could imagine services that would allow people not only to get their content closer to the customer but also then to have it delivered faster or with higher quality to the actual device

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