Over the last decade, the Web has transitioned from a one-way information source to an interactive, collaborative communications medium. The new world of Web 2.0 is filled with an ever-expanding list of value-chain players that are developing and delivering innovative applications to today's end-user.

While this transformation into a highly personalized and interoperable Web is certainly seen as a step forward, it creates an interesting predicament for network service providers. For the majority of these companies, developing new streams of revenue from the thriving applications space is a rather difficult proposition. Network service providers that only generate revenue through user access fees for the delivery of third-party applications are bound to struggle in today's economy.

One way for these companies to see greater return in the world of Web 2.0 is enter the applications space themselves.

"Frankly, we are not going to realize the financial return that we are looking for unless we move into the application space or we attract others into that application space on our network," said an APAC teclo executive. "That’s really how we are going to realize value from our network, how it becomes relevant for our customers."

A recent Alcatel-Lucent (News - Alert) report has found that this practice is far too uncommon for network providers. In fact, nearly 72 percent of providers launch fewer than five applications each month, and those that do tap into the market often use a developer platform or a third-party hosted app store, according to the survey.

Furthermore, three out of every four application developers that were polled by Alcatel-Lucent said they would be willing to pay for subscriber preferences and location.

To help network service providers reap the benefits from the burgeoning applications space, Alcatel-Lucent has developed a number of innovative solutions and business models that can help these companies offer developers the capabilities that they are willing to pay for.

As TMC's (News - Alert) Erik Linask notes, the current applications environment is not a "one-size fits all" world. Network providers that are able to offer customers customization and personalization will find themselves one step ahead of the curve.

These new telco business models allow network providers to collaborate with value-chain players and be a major player in the applications space. For more information ALU's applications enablement strategies, click here.

Beecher Tuttle is a Web Editor for TMCnet. He has extensive experience writing and editing for print publications and online news websites. He has specialized in a variety of industries, including health care technology, politics and education. To read more of his articles, please visit his columnist page.

Edited by Erin Harrison