Convergence In California’s Communications Marketplace

The “Big Bang,” long anticipated in the communications market, has happened. Convergence has arrived in California’s communications market place—evidenced by today’s broad range of new communications choices available to the average California consumer. Broadcasters and telecom, cable, satellite, Voice Over Internet Protocol (VoIP) and wireless companies are all courting the same consumer, in a race to offer voice, TV and radio-type programming, wireless, Internet and Internet Protocol (IP) services. Competition in this converged world is already proving to be a boon for California’s economy, resulting in an increase in jobs and investment, as well as a shot in the arm to new, technologically-savvy providers. This “Big Bang” is producing multiple, fiercely competitive providers of bundled and innovative services that include voice, audio, video, data and VoIP, as well as HDTV, Digital Video Recorders (DVRs), Video On Demand (VOD), Interactive TV (iTV), text messaging, chat, file sharing, camera phones and PDAs, to name but a few. The Carmel Group conducted a study in late May 2005, to investigate the impact of converging technologies in the communications sector. It involved hundreds of contacts and interviews with venture capital firms, investment banks, and communications companies. It looked at the effect this new sector has on California’s economy, especially in terms of jobs and investment.

3 EXECUTIVE SUMMARY
5 METHODOLOGY
7 KEY STUDY FINDINGS
8 California Investment and Jobs
12 Well-Positioned Companies
15 LIST OF RESPONDENTS AND COMPANY REFERRALS
15 Investment Bankers
15 Venture Capital Firms
17 Companies
17 Part A: Interviewed
20 Part B: Companies Referred To, But Not Interviewed

Convergence In California’s Communications Marketplace

Its Impact on CA Jobs, Investment and the Economy

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