Logica CMG's CTO, Paul Jesemann stresses than the definition of convergence is very important, mainly because perception is very strong. He defines it at the convergence of ways of communicating, be it WiFi, Instant messaging, and so on. This convergence has blurred the line between who's the user, the vendor, the competitor.

The convergence market is right now characterized by a lot of disruption. Networks for example are evolving into more IP-based platforms/services, while WiFi, mobile and broadband are also experiencing changes, creating some confusion in the market. Added to this, the market now has much more self-conscious users who Jesemann says know what they want, at the price they want. "Consumers are definitely more advanced than 10-15 years ago," he adds. Enter technologies like IP and IMS, which Jesemann describes as "technology-enablers that the industry needs in order to offer a range of more compelling services."

Back to perception. Despite the plethora of different services like 3G, which Jesemann says has still not picked up the way analysts predicted it would, maybe due to a lack of compelling services but also because of user perception, with many of them having valid questions like ‘Will the service be good?' or is ‘A new handset needed?'

Therefore, the onus is on the industry to create a range of services that entices the user. Just as importantly, the industry has to understand what it takes to create a value-chain. In addition, Jesemann points out the need for economic viability and adds that from a technology standpoint, many operators' payment systems have to change. "Payment systems should reflect the value of the services and content provided, and this right now, is a major obstacle," he says. One reason payment systems pose a challenge at the moment is because of the unaligned expectations between telcos and content providers. Another, says Jesemann, is the lack of understanding of what the user really wants. For example, users may want mobile TV, then again, they might not. Another example, he adds is the fact that the average user has a limited appetite for handset changes. The significance? "Measure with and against the development of services. Ask questions like – Is it impossible to use? Is it cumbersome?"

There is no doubt, says Jesemann that the mobile value chain and eco-system has to take-off, but at the same time, there is also no doubt that it is a hard job for those in the industry. Obstacles include:

• People who are active in the mobile industry but who still don't really understand the industry;
• Too much competition;
• The end devices – just how compelling and attractive are they?

Jesemann points out that the convergence of industries has led to the largest content provider being the user. It has also led to the entry of the new service provider – one who is consumer-centric and not subscriber-centric. These providers understand the value and importance of a unique experience with instant gratification and little infrastructure and services issues, and therefore work to understand their customers well. They also have to understand that costs are often the bottom line. User education and trials are of utmost importance. Ultimately, the losers are the guys who believe in the ‘one-model fits all' theory, and those who lack flexibility and ignore change.

The winners are those who define a set of services, understand what types of services are needed and then create new market propositions. "Technology is only the facilitator," cautions Jesemann.
"The worst thing for the consumer is if there is a war of different technologies. The best thing - a seamless user experience.

To succeed in the mobile value chain, the end-consumer also needs to be educated. "They need to know the relevance of the technologies and services and understand the benefits, and this cannot be done by saying – ‘we have the technology'." To achieve this, the whole industry must work together, be they operators, vendors, content providers and aggregators."

Jesemann also adds that we should not forget the so-called ‘old' services like voice and text messaging which are still in demand due to their convenience and ease of use. He predicts that texting will be around for many years to come, simply because the world is a global village. The only difference is that the more developed markets will have more advanced and complex texting features. "Text in some countries will always be big," says Jesemann. "The most important thing for the operator is to ensure  that the message always reaches its intended recipient.

When it comes to the value-chain, only the adoption of services and content by the end-user will actually reflect the extent of the industry's success and understanding of it. "Ultimately, it's all about understanding and accepting one's role, be they the vendor, operator, user, competitor, they all have to know where they fit in," says Jesemann.