Even though the Internet has turned into something that virtually no one today would want to miss, infrastructure operators are uneasy about it. Revenues do not come from the Internet access business, but from the declining phone business. Mobile revenues are subject to the change, as voice communication services turn into just one variant of traffic the IP protocol is capable of carrying. Although Telcos understand these developments and prepare to migrate their networks to IP, there are further challenges to their business. Growth takes place on top of the networks but doesn’t yield a share to the bit-pipe operator automatically, asking operators to look for alternative revenue sources. The ‘two-sided business model’ or ‘Telco 2.0’ concept seems to be a good choice for Telcos to not only participate in – but rather contribute to – the development of the Web, and thus might be more than appropriate to make good for the doomed telephony business.
