The Convergence of Wireless, Cable, Telephone and Satellite Technologies

Abstract

            Convergence of technologies is very evident nowadays. With the introduction of the Internet, it is now possible to watch a television program or listen to a radio program from a computer. Mobile phone users can even send pictures or images to another person’s mobile phone.

            This paper will discuss the various technologies that have made communication and information processing hassle-free.

An Overview of Information Technology      

            The dawning of the Internet has revolutionized the way man delivers communication to another individual. In the past, friends and loved ones used to send letters via postal service in order to have a line of communication. The process normally took a week or two in order for the response to be received by the intended recipient. Nowadays, one would just have to send an e-mail to another person and the response would be instant or much shorter than postal mail.

            Likewise, it is now possible to watch a live event such as a championship game of a sports event or a concert of a world-renowned musical artist even though the viewer is based from a location very far from the venue of the event. This is made possible through the technology of cable television.

            These are just some of the innovations that have made communications easier using the technology of the Internet. By using the power of wireless, telephone, cable, and satellite technologies, information can be processed and conveyed to the target at a much shorter time. This is what we call technological convergence.

The Meaning and History of Convergence

            History will tell use that the power of telecommunications and broadcasting used to operate on separate connections, on independent technologies, and for a different function.

            For example, telecommunication firms made use of connected fixed wires which enabled a customer to talk to another person on the other end of the line. This technology of connection was likewise used for technologies that utilized the Internet. Wireless technology such as the one used in mobile communications came into being in the 1980s which was followed by the Internet and then data communication (Zhang & Johnson, 2004).

            Broadcasting, on the other hand, provided one-way traffic of communication and there were only a handful of providers similarly delivering programs on television sets of subscribed consumers for a certain period of time (Duysters & Hagedoorn, 1997).

            With the boom of the Internet and mobile technology during the 1980s, it was now likely for a consumer to enjoy both broadcasting and telecommunication services using different avenues. At present, people with their own computer set can get to enjoy their favorite television programs in their consoles. Pictures can now be embedded in e-mail messages or digital technology. In fact, convergence has made it possible for news agencies such as BBC and CNN to operate their own websites (Duysters & Hagedoorn, 1997).

            Conveyance of information is no longer confined to encyclopedias or informative magazines. Thanks to sites like Microsoft Encarta and Britannica Online, consumers can find information on any topic that they desire (Duysters & Hagedoorn, 1997)

            Convergence has made life easier for consumers. Long ago, telecommunications was dominated by the likes of AT & T, Cingular, and other firms. With the dawning of convergence, it now became possible for minor players to have their share of the market (Duysters & Hagedoorn, 1997).

First Signs of Convergence

            Although convergence was imminent during the latter part of the 1950s, it did not show its first signs until the first part of the 1970s. During this stage, powerful digital components were entering the market at reduced costs. Major innovations in these components hastened the need for their integration into all varieties of electronic gadgets. Presently, electronic equipments are now powered by a common digital technology (Duysters & Hagedoorn, 1997)

The Second Signs of Convergence

The transformation of analog telephone systems into fully digital networks ushered in the second convergence during the middle of the 1980s. The greater demand for a switch to digital technology of telecommunication networks prompted several of these firms to become skilled in software and micro-electronics and increase the desire of computer manufacturers in the telecommunications sector. During this time, industry experts predicted that the various information technology sectors would merge into one giant industry and that they would respond by tapping into each other’s market (Duysters & Hagedoorn, 1997).

Not Yet Ripe For Convergence

While envisioning the possibility of convergence, these industry experts acknowledge the fact that there is still not sufficient skill present in the current sector to make it embrace the adjacent sector. However, they have the option to accumulate the required knowledge needed to merge with the other technology. These firms can either train in-house or acquire technologically advanced firms. Whichever option the firm may choose, they can cooperate with a partner firm and conduct research and development (Duysters & Hagedoorn, 1997).

This was the case of AT & T and IBM. In 1984, after the company was dissolved, AT & T bought MOS Technology and NCR. It entered the computer market by acquiring Olivetti. In the case of IBM, it fueled its presence in the telecommunications sector with its acquisition of Rolm Corporation and SBS Satellite (Duysters & Hagedoorn, 1997).

While some firms may not be willing to give up their routine tasks in favor of an automated one, there are some viable alternatives open to companies on how they can take advantage of convergence. The first one is by developing in-house products and the other method is by acquiring technologically advanced companies. The two firms can cooperate with each other in terms of conducting research and development or utilizing other methods of cooperation(Duysters & Hagedoorn, 1997).

Cooperation can be cost effective since it will not require too much investment and it is ideal for monitoring technological innovations(Duysters & Hagedoorn, 1997).

The convergence of the 1980s was highlighted by the competition that existed between AT & T and IBM(Duysters & Hagedoorn, 1997).

While mergers are viable alternatives for convergence, its main setback is that one of the companies involved in the acquisition may not have the technical expertise in a certain field. If the technology of the company being acquired is not yet suited for the new technology, then it would be extremely difficult for the acquiring company to share its technology(Duysters & Hagedoorn, 1997).

The 1996 US Telecommunications Act of 1996

The path towards convergence was initiated by the signing of the US Telecommunications Act in February 1996 by then President Bill Clinton. Under this legislation, all Americans will have access to the Internet. It provided for an open competition among all telecommunication firms and cable companies. The job of setting up the regulations for the implementation of the new Act was given to the Federal Communications Commission (FCC) (NTIA, 1999)

In addition, each telecommunication firm is required to link up with other telephone companies. Excluded from this policy are firms which have less than 2% of the country’s subscriber lines. Aside from that, any negotiations for interconnection must have the approval of a State and must be accomplished within the deadline set forth by the Act (NTIA, 1999).

The 1996 US Telecom Competition and Deregulation Act supersedes previous legislations including FCC regulations, consent decrees of 1984, and state laws (Zhang & Johnson, 2004).

Patterns of Convergence

            Patterns of convergence take place in various levels namely product-market, technology, and firm levels. Product-market variety represents the convergence taking place between computers and telecommunications. The technology level represents a shift from analog devices to fully digital gadgets since all sectors of the industry are influenced by micro-electronics and software(Duysters & Hagedoorn, 1997).

            In the case of firm level, convergence may have varying effects depending on the capacity of the company to embrace new technology. In this level, the influence of convergence has moved quite rapidly during the early part of the 1980s (Duysters & Hagedoorn, 1997).

            The reaction of various firms to convergence will be determined by the inertial forces affecting the company. For example, firms with a successful track record in the industry may be the first ones to resist the change from routinary to automatic tasks(Duysters & Hagedoorn, 1997).

            In general, convergence technologies have three patterns:

1. Special purpose computers will take the place of traditional devices. This is now largely possible with a matured digital technology and cheap computer hardware parts (Zhang & Johnson, 2004).
2. Networks such as Ethernet and LAN are now ready for business applications. Introduced in the 1970s, packet-switching technology has enabled text and numerical data transmission (Zhang & Johnson, 2004).
3. Technologies which are not meant for transmitting data are now accessible for data capabilities. For example, mobile service providers now have the capability for Internet access (Zhang & Johnson, 2004).

            This pattern of convergence is very much seen on the current models of personal digital assistants which now have additional features that provide access to wireless networks such as Bluetooth and telephony technology for making a voice call.

Dimensions of Convergence

            According to the Organization for Economic Cooperation and Development (OCED), convergence has three dimensions.

1. Convergence will simultaneously utilize one mode of transmission in sending various kinds of information. Different kinds of messages have been transformed into structures of on/off electric impulses (OCED, n.d).
2. Convergence is headed provides hybrid technology that integrates data, voice, text, and/or graphics. It is closely related to the technical dimension but it focuses on products and services (OCED, n.d).
3. Convergence will involve merging, acquiring, amalgamating, and diversifying of firms in order to be attuned to the changing times. Time Warner, for example, has expanded its operations into recording, film making, book publishing, and cable TV (OCED, n.d).

Divergence of Industries

For a period of sixty years, telegraph service providers were the only news agencies. Then, other modes of communications emerged(OCED, n.d).

            Prior to becoming separate entities, sectors like telecommunications, broadcasting, and publishing were integrated. At first, broadcasting and telephone service providers were merged. Before World War I, radio was perceived as a major component of telephony. Telephone service providers beamed entertainment, election returns, and other news to their subscribers(OCED, n.d).

The Emergence of Convergence

            Cable television is one of the earliest instances of the technical dimension of convergence. Cable TV providers have regulated their rates in order to make it accessible to homeowners. Telephone companies have provided ducts, poles, and right-of-way so that cable television providers can set-up their coaxial networks(OCED, n.d).

            Satellite communication is another application of convergence. With this technology, the boundaries between broadcasting and communication have been breached so that news materials can be beamed directly to homes(OCED, n.d).

The Effects of Convergence

            Convergence has led to the utilization and emergence of new technologies. This new shift has resulted to the following:

1. The market is no longer dominated by one or two companies but has enabled other firms to have a share of the consumers in the market (Babe, n.d).
2. The competition among market forces have reached greater heights(Babe, n.d)
3. The need for traditional companies to venture into other fields by working hand in hand with firms in their chosen sector (Babe, n.d).

            Convergence has likewise enabled firms to have access to bundled features. This means that a customer would no longer have to make separate payment in order to avail of a certain service. The cost for a bundled service may be lower than the price that they will pay if they subscribe to a certain feature individually.

A Look at Next Generation Networks

            Next generation networks refer to the process of transition to a faster connection speed using broadband and an IP network. This technology essentially provides integrated services in one connection. There are innovations that may not have the capacity to be competitive with NGNs as well as the various services which the technology provides. However, these networks may still be suitable to users who have no access to high speed Internet(Bond, 1997).

            Before discussing these technologies, it is likewise worth mentioning the innovations that have led to their development.

            Due to the reduction in communication expenses over the last two decades, new technologies have emerged namely fiber optics, smart wireless, and cheap electronics(Bond, 1997).

            Fiber Optics

            Since its first commercial production in 1970, fiber optic cable has emerged as the leading means of transmitting signals in telephony. It has replaced copper cables, satellite, and microwave transmission. The main advantage of a fiber optic cable is that it has a high bandwidth due to the light it transmits. It will result to greater information density compared to the traditional cable (Bond, 1997).

            Affordable Electronics

            Prior to convergence, the structure of telephone systems consisted of electromechanical switches. The arrival of cheap and powerful microprocessors eliminated the need for switching mechanisms. This is more affordable and reliable than conventional cables. Another benefit of this technology is that it provides additional services for the user (Bond, 1997).

            Smart Wireless

            The power of wireless technology is headed towards higher density information using compression algorithms to fit multiple conversations into a certain frequency. The introduction of wireless technology has provided users an alternative to traditional technology when accessing basic services. It has eliminated sensitive issues that is usually comes along with wired line installation (Bond, 1997).

Miniature Integrated Circuits and Microchips

            In 1958, Texas Instruments introduced integrated circuits. This device is a collection of transistors inserted into a miniature semi-conductor. The microchip, on the other hand, was invented by Intel in 1971 (Bond, 1997).

            Improved Transistor Capacity

            The capacity of transistors has increased dramatically over the years. This is governed by Moore’s Law. According to this principle, the amount of transistors found on a microchip increases by twice its amount every one or a couple of years. Moore’s law states that the amount of growth of transistors is close to every 18 months (Bond, 1997).

The Emergence of Networks

            Nowadays, most offices are usually linked to one another through a local area network (LAN), which is likewise connected to the Internet. Originally, the primary purpose of computers is for documentation, but now, it is designed for handling and processing information (OECD, n.d).

            The New Phase of Networking

            Aside from the technologies mentioned above, there are new networking alternatives available to customers. These options are provided by both minor and major industry player s(OECD, n.d).

Cable Television

            Cable TV companies have already made their move to switch their technology into the hybrid fiber wires providing two-way traffic of communication in order to enhance the capacity of their network. Because of this, cable television providers now have access to voice and data services and can now compete against telecommunication firms. Voice and Internet accessibility are things that help distinguish the products of  cable TV firms from satellite companies(OECD, n.d),

            With cable television, end-users can have access to 160 Mbits/downstream and 120 Mbits/upstream (OECD, n.d).

Broadband Wireless Access

            The purpose of this technology is to provide fast paced wireless access over a wide area. Fixed-wireless innovations, such as the Local Multipoint Distribution Service (LMDS), as well as the Multichannel Multipoint Distribution Service (MMDS), were not adopted by the market. However, alternative technologies such as the WiMAX and the WiFi have more or less compensated for the failure of the LMDS and MMDS (OECD, n.d).

            WiMax has the capacity to send high speed data at a frequency of 40 Mbits across distances of more than 3 to 10 kilometers in a line-of-sight permanent scenario. Of course, with more users connected to the net simultaneously, this capacity will be reduced considerably (OECD, n.d).

            Wireless fidelity or Wi-Fi is a wireless network that utilizes any of the several standards belonging to the 802.11 family. With WiFi, accessing a LAN is still possible even without installing cables. It is very popular among rural and urban clients because of its expandability, affordability, and flexibility. Although the range of WiFi technology is restricted to 45 meters inside and 90 meters outside, they can be configured in such a way that they can be accessible in several points thereby improving its capacity (OECD, n.d).

            Using broadband technology over a power line offers several benefits with the speed of connection not relying on the distance or the number of users accessing the network. With this technology, the user would only have to attach a modem in order to have high-speed Internet connection. Its only setback is that it does not have standard provisions yet and the bandwidth capacity is still in doubt (OECD, n.d).

            3G technology allows high speed data transmission up to 2 to 4 Mbits. Aside from that, users who have 3G capable handsets can connect to the Internet or access multimedia even if they are mobile. Likewise, 3G technology offers the convenience of mobile video or television programming on their cellular phones (OECD, n.d).

            Satellite technology is exclusively designed for mobile telephone, satellite radio, and television and video services of homeowners. Recent advances in technology such as data compression algorithms and spot beam technology have paved the way for a technically efficient satellite communication. The customer needs to set up equipments such as small antennas and indoor unit within the grounds of their residence (OECD, n.d).

            Satellite service providers have provided this technology to residential owners who have no access to broadband technology (OECD, n.d).

            Another convergence technology that is gaining popularity in the market is Voice over Internet Protocol (VoIP). Telecommunication firms, cable service providers, and search engines such as Google and Yahoo are fighting for a share of international market for VoIP(Herman, 2006).

In North America, 2009 projected growth is $23.4 billion which is $19.9 billion dollars more than its 2004 gross. The emergence of VoIP is not only evident in North America but also in other parts of the world as exports of voice modems across the globe increased by 100 percent from 1.1 million during the first three months of 2005 to 2.1 million during the next six months, based on a study conducted by Kinetic Strategies which publishes Cable Digital News(Herman, 2006).

            VoIP technology utilizes IP based networks. The  voice which is embedded in minute electronic packets travel across the Internet at the speed of light in a similar manner that electronic mails and information from web sites are conveyed(Herman, 2006).

Future Technologies

            As technology will continue to become more advanced, there are more innovations to look forward to in the future.

1.  Regardless of the technology, this trend will provide a uniform method of handling daily transactions. Companies such as Microsoft and America On Line (AOL) are working out plans on setting up their own method of authentication (NECCC, n.d).
2. Mobile payment technology will be implemented in Europe as well as in some countries in Asia. By dialing certain numbers, users can order a beverage from a vending machine, get in touch with financial institutions, or broker companies. The customer can use their mobile phones to access these numbers (NECCC, n.d).
3. Using Global Positioning System (GPS), governments can customize the availability of applications to certain locations only. Information concerning services and facilities can be accessible to users in the nearest area (NECCC, n.d).

Major Issues of Concern       

            There are some critical issues that should be addressed in order to put in place the technologies of convergence mentioned above.

1. Internet traffic is susceptible to interception by hackers. The e-mails and documents that travel on the highway are vulnerable to criminal elements. It is important that these concerns should be addressed and it can have an impact on the type of technology to be availed of (NECCC, n.d).
2. Information technology services should be made accessible to all citizens connecting to the Internet and other communication portals. Various governments should set up protocols that would ensure the availability of services to consumers (NECCC, n.d.).
3. The growing popularity of wireless technology has reduced the usability of public pay phones. Governments should ensure that the removal of these facilities must be in accordance with the law (NECCC, n.d).

Conclusion

            Technology has gone from the conventional to the highly-advanced. Gone are the days when an individual would wait several days in order to get a response for the letter they sent to a relative overseas. Innovations like the electronic mail or broadband has made availability of information almost instant.

            As society is moving towards convergence, every individual must be given an opportunity to have access to these technologies.

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