Skip to main content

Fixed-Mobile Convergence Subs Forecast

Fixed telecoms operators will be the driving force behind fixed mobile convergence (FMC) over the next five years, according to a report released by Informa Telecoms & Media. The study predicts 92 million subscribers by 2011 generating $28 billion in revenues and comprising 3 percent of overall subscriptions.

Fixed operators will aggressively roll out FMC services in order to target the ongoing threat of 'fixed mobile substitution' - where people are using mobiles rather than landlines. This is already presenting a significant challenge in certain territories and fixed operators are expected to respond by targeting FMC to gain share of mobile voice revenues through Mobile Virtual Network Operator (MVNO) agreements.

Mobile operators, on the other hand, will take a cautious approach to FMC deployment over this period, and are expected to offer services where competition is highest to combat fixed operator activity. In addition, they will continue to leverage the higher returns offered by fixed mobile substitution and are also likely to await the development of 3.5G and technologies to combat fixed line and DSL operators head on. This will be achieved with competitive pricing in order to reap the greatest returns out of the current fixed mobile substitution 'cash cow'.

A consequence of this activity is a predicted increase in sales of dual mode handsets to 5 percent of global handset sales: over 47 million units per year by 2011. The majority of these sales (85 percent) will be to consumers adopting FMC services such as BT Fusion for convenience and cost benefits, although a significant proportion of revenues will be from enterprises adopting FMC as part of a unified communications strategy for more effective business interactions.

Key adoption areas for FMC will be the Asia Pacific region, where other technologies may be leapfrogged, North America and Europe, where broadband penetration is high.

Popular posts from this blog

When AI Spending Reaches $3.6 Trillion

Enterprise AI budgets are flowing in two directions at once, and only one of them builds an asset the buyer actually controls. Gartner's latest forecast puts worldwide AI spending at $2.7 trillion in 2026, but the composition of that figure matters far more than the total. Executives who read only the headline will miss the tension between what they are buying and what they actually own. The Number Behind the Number Gartner projects 2026 AI spending is a 49.5 percent increase over 2025, with $3.6 trillion forecast for 2027. AI infrastructure accounts for $1.5 trillion of this year's total, more than half. Gartner's John-David Lovelock calls the data center buildout the largest infrastructure project humanity has undertaken, and describes demand as inelastic even as memory prices climb. Compute Concentration is a Sovereignty Issue Gartner expects hyperscalers and service providers buying AI-optimized servers to remain the largest single area of spending. For an enterprise, t...