February 12, 2007 01:00 ET

IBM Predicts Content Distribution for Telecom Growth

Report and Demos Showcase Potential for New Revenues

BARCELONA, SPAIN -- (MARKET WIRE) -- February 12, 2007 -- IBM (NYSE: IBM) today unveiled a new report, "A Future in Content(ion)," that addresses the debate on how telecommunications companies can tap into the US $463 billion market for digital content.

The report, from IBM's Institute for Business Value, says that for operators to protect their broadband revenues they will have to move up the content distribution value chain and bundle their traditional offerings with advanced digital content. The report also calls for telecom service providers to make a "substantial organizational, cultural, technological, and business model transformation" as they make the transition from providing network connectivity to enabling the consumer experience.

"Operators have the transport, as well as excellent customer-facing relationships," said Lawrence Kenny, General Manager in IBM's telecommunications consulting group. "IBM's research shows that operators can partner with content providers and bundle their traditional offerings with advanced content services, such as location, presence and interactive services."

Under the umbrella, "enabling tomorrow's services today," IBM demonstrated such advanced content here at 3GSM:


IBM and TELUS demonstrated a remote healthcare patient monitoring system. This demonstration highlights the power that comes from combining TELUS' next generation IP network with IBM technology. The remote healthcare patient monitoring system demonstrates one of the vertical markets addressed by this framework and is set to prove how healthcare authorities can save money while improving patient care.

Virtual Worlds

At 3GSM and in the virtual world of Second Life, IBM demonstrated a new technology platform that enables instant messaging to flow between avatars -- 3-D representations of people in online virtual worlds -- and mobile phones and also enables users to create voice conference calls while in Second Life meetings. New virtual worlds create significant revenue opportunities for service providers to link their networks to these social network environments.


IBM Research demonstrated a new technology that makes it possible to locate and identify a computing device wherever it might be, as soon as the user connects to the network. It is particularly suited for large enterprises, such as telecoms, financial institutions, hospitals, and fleet management companies, who need to efficiently manage a large mobile workforce.

"While IBM is developing new services our clients can deliver, we also understand the heavy lifting in billing, OSS integration and -- most important -- security technology our clients need to provide the foundation to deliver new content," Kenny said. "The fundamental transformation expertise and ability to launch services quickly are where service providers can count on IBM for greatest benefit. IBM is all about delivering tomorrow's services today," Kenny said. "This is a time of great promise for our telecommunications clients."

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