d content services are vertically integrated. Each service depends on a dedicated network and corresponding terminals. Examples of such vertical services are fixed telephone services, traditional data services, mobile services and TV broadcasting services. Internet changes the vertical structure to a horizontal one, as described in Figure 1 in chapter "Analyzing the Current Phase of the OSS/BSS Software Market". All terminals and services will be Internet com- patible. Instead of vertical service "pipes" there will be a horizontal structure of services, network and access (Fig. 1). The horizontal structure will change the terminals, the services and the way the services are managed. In vertical networks the terminals are dedicated to the corresponding services. In the horizontal structure there is a freedom to combine different service functionalities in the terminal equipment. The horizontal services can be grouped to the following basic classes: Original Internet Services operated by Internet Service Providers (ISP), Application Services operated by Application O. Martikainen Department of Information Processing Science, University of Oulu, P.O. Box 3000, 90014, Oulu, Finland e-mail: olli.martikainen@etla.fi The Research Institute of the Finnish Economy (ETLA), Lönnrotinkatu 4 B, 00120, Helsinki, Finland P. Tyrväinen and O. Mazhelis (eds.), Vertical Software Industry Evolution, Contributions to Management Science, DOI 10.1007/978-3-7908-2352-3_13 C Springer-Verlag Berlin Heidelberg 2009 O. Martikainen Telephone ACCESS TECHNOLOGIES HORIZONTAL ACCESS NETWORK TECHNOLOGIES TCP/IP BASED NETWORK NETWORK BASED SERVICES HORIZONTAL SERVICES Fig. 1 Vertical services "pipes" compared to horizontal service structure IP Applications Narrowband fixed Mobile Business Data Broadband fixed Broadband wireless Fig. 2 European telecom investments Service Providers (ASP), e.g., in banking and commerce, Communication Services such as Unified Messaging or VoIP by Communication Providers and Media Services by Content Providers. In Fig