TORONTO – Evolving technology combined with wire-line network infrastructure will transform Canadian telcos and cable companies into interchangeable broadband services providers, predicts a new report from Moody’s.
The report ‘Canadian Telecommunications and Cable Markets’ says that depending on the rate of technological progress and the geographic concentration of capital spending, this convergence will occur within five years.
"Service providers will become more homogenous as their capabilities converge”, said Bill Wolfe, Moody’s VP-senior credit officer, in a press release promoting the report. “To combat the resulting commoditization of their products, they will look to new means of competitive differentiation. In turn, this will influence strategy, tactics and investment decisions."
The technological convergence will continue to transform what were once distinct products, like voice, data (Internet), and video, into a bundle of telecommunications services that can be marketed and consumed as an integrated unit, the report continues, one that may also spill-over into the wireless services market.
