Abstract: Modern telecommunications companies currently undergo remarkable structural changes to be successful in the Next-Generation markets for communications and content products. The implementation of capable IT structures will be a key success factor to be profitable. This paper describes the market challenges of telecommunications companies and illustrates a comparison of different governance methods. It also introduces a new governance method and finally outlines which structures are appropriate to meet the shifted market requirements. 1 Challenges for Modern Telecommunications Companies Currently, modern telecommunications companies (TelCos) undergo enormous structural changes towards IP-based telecommunications companies (IPTs). The product portfolio of IPTs contains bundles of products e.g. IP-based broadband Internet access (www), IP telephony (Voice over IP VoIP), IP television (IPTV) and premium content (e.g. movies, games, music). Many TelCos aim at scenarios, where it is...