Energy/Telecommunications Convergence: The Formation and Integration of a New Value Chain (J. C. Whorton & R. E. Fessler)

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This paper focuses on the convergence of the energy and telecommunications markets and the creation of a new value chain that is both integrated an... (More) This paper focuses on the convergence of the energy and telecommunications markets and the creation of a new value chain that is both integrated and interdependent. The general consensus for the energy/telecommunications convergence centers on two issues. First, there is the competition for the “last mile” or local customers. Most energy utilities and telecom companies have overlapping customer bases or service territories where they have existing rights-of-way, established brands, and service centers. Second, deregulation and the commoditization of bandwidth capacity have forced telecom companies to revisit traditional strategies for leveraging network capacity, managing declining margins, and maintaining market share in a commoditized market environment – just as energy companies have experienced most recently. (This paper by J. C. Whorton and Richard E. Fessler, “Energy/Telecommunication s Convergence: The Formation and Integration of a New Value Chain,” was published as Occasional Paper 33. Boulder, Colorado: The International Research Center for Energy and Economic Development, 2001. ISBN 0-918714-59-1). (Less)