Competition in Telecommunications and Internet Services: A Dynamic Perspective

Convergence of the telecommunications, media and information technology sectors has been increasing in recent years with the emergence of the Internet and with the increasing capability of existing networks to carry both telecommunications and broadcasting services. Developments in digital technologies and software are creating large innovative technological potential for the production, distribution and consumption of information services. Convergence, characterized as the ability of different network platforms to carry essentially similar kinds of services, may have different faces: telecommunications operators may offer audiovisual programming over their network; broadcasters may provide data services over their networks, cable operators may provide a range of telecommunication services (cf. EUROPEAN COMMISSION, 1997, p. 1). Up to the present time the most relevant evolution and adaptation of such platform independence is that of the transmission control protocol / Internet protocol (TCP / IP). TCP / IP allows information packets to be transported across different networks despite differences in bandwidth, delay, and error properties associated with different transport media (e.g. fiber, radio, satellite) (cf. FRISHMANN, 2001, p. 4).