The steadfast rise of convergence has revolutionised the creative industry and has posed many significant issues, trends and developments directly affecting the sector. It has shaped the way the industries operate; allowing them a more concentrated access point to the consumer, and with this intimate contact, convergence has posed many ethical and moral issues. Rifkin (2000:172) coincides with this view when he says, “the users culture and society is being pre-packaged into splintered commercial experiences�.
The mobile telecommunications market has undergone a stream of rapid changes in recent years, including the progressive deregulation of the industry, the challenges of the digital revolution, the increases in new technologies and communications channels, and the race to rollout third generation (3G) technology (Mobile Phones Market Report, 2003).
New technologies are constantly causing an effect in the creative industries but none more apparent than mobile phone convergence. This is for the reason that like Hutchinson Whampoa, many believe that this new technology “will be as significant as the birth of television after a generation of radio� (Hutchinson Whampoa Limited, 2003). This revelation is fitting to today’s situation as companies have been rapidly revamped, merged, acquired and have been forced to make real competitive decisions to capitalise on and stay afloat of the new technology.
In the past it was difficult to justify the vast new investments in 3G, as most service ideas were only theories and no evidence existed to validate the concepts (Ahonen, 2003). Today companies, for their own survival, have been impelled to get behind the technology with big budgets for research and development, advertising and sharing of tangible and intangible assets. Rifkin (2000: 19) agrees with this when he says that the industries of telecommunications, media and information technology once divided by their differences have come together forming a single integrated communications grid as a kind of global nervous system enveloping the world today. According to the Wikipedia (2004) the industry is realising its new role as "more than just network providers- but service and content providers as well". The redefining of roles as a result of this form of convergence has brought enterprises together in deep webs of mutually interdependent relationships, where they share activities and pursuits. Businesses are connecting with suppliers and customers to share intangible resources in the form of information and expertise, as well as physical resources, with the conviction that by pooling their strengths, each firm can better optimise its own objectives (Rifkin, 2000: 19).
Ahonen (2003) imparts that mobile phone convergence has "affected companies far removed from the digital content industries, such as vending machines, rock concert ticketing, gaming and public transportation". These industries are adapting mobile phone based solutions to save money, improve customer service and profit from this convergent technology.
The effects on the creative industries from this network approach have invaded every type of business and will be a key to success and profits. It is necessary then for the industry to become aware of the opportunities and threats generated by the convergence of mobile phones, to be able to prepare to survive and win in the emerging new environment.
Back to Mobile Phone Convergence
Donna Locke 23:41, 28 Oct 2004 (EST)
