Dusseldorp was in the Capital recently as a guest speaker at the India Internet World. In an interview with The Financial Express, Dusseldorp gave an insight on how convergence is going to hit the media business and change the rules of the game. Excerpts:

What does convergence of technologies mean for the media business?

Convergence is a term that can mean many things all resulting from the digitisation of information, its delivery channels and reception devices. Three things are going to drive convergence in the 21st century -- broadband access, interactiveTV services and developments in wireless internet access.

Around the world, large conglomerates are aiming to provide faster internet access to companies and consumers through use of broadband technology. Internet and digital television has opened the way for interactive Television. In the field of wireless services, the adoption of GSM standard throughout Europe has lead to introduction of a host of services.

For instance, in Italy cellular phones will automatically be connected to Telecom Italia's server allowing visual display on the telephone screen. In Germany, the largest mobile phone operator has signed up with the main television networks to deliver news, sports and weather over wireless network. Ericsson has already partnered with several application providers to bring a range of new services to its mobile internet portal.

What impact will it have on the business model of media companies?

Convergence will fundamentally change the way media companies are earning their revenue. Mediacompanies worldwide have been extremely slow in moving towards convergence. In Europe, for instance, broadcasters are more concerned about going digital. What broadcasters have to realise that from now on television and internet have to go hand-in-hand.

One must concede that the internet is still a very immature market with new business models and strategies developed day by day. Existing media companies, however, are used to mature markets and stable business models.

The core business model of media companies is selling information. But most of them may soon find that their content is being given away free. In such a scenario, newspapers have to look beyond subscription and advertising revenues. The media companies may be forced to licence or syndicate their content.

What will be the impact on broadcasters?

With the advent of broadband, there will be more broadcasting online. Broadcasters are going the face the challenge when advertisers find the Net more mass-market friendly. The way to gofor them is to leverage their marketing skills and tie up with online companies. Future of broadcasting is closely linked to Net broadcasting.