Network infrastructure suppliers must start looking at how they can add value to their customers if they don't want to descend into supplying best-effort access based on price alone – a business model that may not prove profitable.
This is the word from Paul gainham, service provider marketing director at Juniper Networks EMEA, who says that the debate over whether content or connecitivity is "king" are outdated and suppliers of the two need to work together to service users and both remain profitable.
As long as network infrastructure providers attempt to differentiate themselves on speed and price, he says, they must expect customers to coninually demand additional speed at a decreasing price. And that's a business model that won't work in the long term.
"This is a challenge for service providers," he says, "If they are unable to show users real value, they will become utlities.
"If, however, they step up and add value in the eyes of both consumers and content providers, the value of their network could go very high."
He recommends that service providers seek partnerships with content providers that allow all players in the supply chain to share revenue opportunities.