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U.S. Leading Fixed-Mobile Convergence

According to the latest Strategy Analytics report, "Cellular Beats Convergence in In-Building Voice Battleground," the U.S. market will lead adoption of fixed mobile convergence (FMC), as the rest of the world sees FMC play second fiddle to cellular-only substitution. Seven percent of voice telephony users will use a FMC product in the U.S. by 2010, compared with only two percent outside the U.S. "North America will buck the global trend, where cellular based solutions rather than converged fixed-mobile voice services will dominate. Advanced penetration of WiFi networks, a robust cellphone replacement market, spotty in-building cellular coverage and a dynamic broadband and cable industry will combine to keep cellular-only users at bay in the U.S.," comments David Kerr, Vice President, Strategy Analytics' Global Wireless Practice. "Players like Time Warner, Comcast and Cox have most to gain in terms of revenue opportunities, with early FMC moves by BellSouth a clear indication that they need to protect their entrenched positions in the fixed and mobile voice markets."

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