Cisco CEO John Chambers believes service providers need to dramatically reinvent their businesses if they are to succeed in the rapidly transforming the world telecoms landscape.
'Service providers have to continually re-invent themselves, moving from charging for calls to determining how to charge for the bandwidth and services on top,' Chambers told an audience of media and analysts at ITU Telecom World 2006.
The traditional role of delivering voice and data services is quickly disappearing, but service providers will define themselves 'not as a method of transport but through other capabilities,' Chambers added.
He said service providers are uniquely positioned to 'enable a whole new standard-of-living processes' thanks to the continued growth of next-generation networks that provide consumer, educational, entertainment, medical and other services. He noted many of Cisco's service-provider customers are growing their network loads by 200% annually because of the demand for new services, especially video.
'If there is a killer app for service providers and businesses as a whole, it is video,' Chambers said. 'That's where the future is going to go.'
Chambers said Cisco has invested in some 160 emerging countries around the world, often after determining if government officials 'starting at the top get it,' if regulators understand what is needed and if service providers exist 'who can deliver' the needed technology services.
Chambers also predicted that 3G services are going to expand and that corporate responsibility is becoming a more important aspect for large global corporations to consider.
'Corporate social responsibility and good business go hand-in-hand,' he said.