beyond pt 0 23/1

One of the few examples of the decrease in value to telcos from e-commerce is
the commoditisation of bandwidth, although the networks are always evolving
and being written off. However, the discontinuity seems to be greater in the
current move to digital and data modes.
Interview: Tony Richardson, Telstra,
IRG member, 9 July 1999
However, there is some disagreement on this, as for other
telecommunications companies, no such elimination has been identified.
No examples of the elimination of value occur in the industry—it is not affected
this way. However, companies are using technology more wisely, for example in
the supply chain for savings and improved productivity.
Interview: Alan Rousselot, Ericsson,
IRG member, 5 August 1999
Communications sector firms are themselves major purchasers of
communications services. Re-sale and interconnect arrangements
represent an increasingly sophisticated form of e-commerce among
industry firms, particularly as it affects billing.
Postal and courier services
The postal and courier services risk their value being eroded as more
information is shifted electronically rather than in paper form. Courier
services have already perceived a reduction in their business document
transfer business. Postal services are still rising, due to organisations
billing more frequently, but may start to reduce or even out as electronic
payment services such as Bpay reduce the return postal task.
One way for the postal and courier services to balance the erosion in their
document transfer business, is to get involved in the delivery of products
ordered over the Internet. Some of the products would previously have
been ‘delivered’ by the consumer themselves, for example in taking home
records and books from shopping centres. This can be taken further by
the creation of the services themselves.
By providing delivery services to shopping websites, Australia Post has the
opportunity to leverage their brand name.
The Internet Fulfilment Service Australia Post is developing will also be targeted
to its parcel customers, providing a total fulfilment solution.
Interview: David Hart, Australia Post,
IRG member, 12 July 1999
4.6 External dimensions
As yet, the communications sector has not seen a noticeable transfer of
value overseas. This may change in the future.
Value transfer to or from overseas can occur due to the global and distance
independent nature of the Internet. Any component can be anywhere in the
world. The logistics are determined by the size of the market and the delivery
mechanism/s. Another example is gaming [betting] sites locating to avoid
regulation. If retail sites are located overseas to avoid tax, then local retailers
and the government lose out.
The current practice seems to be that Australian owned sites are still located
here, often as they are plugging into a local network and applications, although
there are instances of sites located overseas. This may change in future,
particularly if the overseas operation becomes much cheaper than locally.
Interview: Tony Richardson, Telstra,
IRG member, 9 July 1999
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