Skip to main content

The Fixed-Mobile Convergence Hype Factor

The fixed-mobile convergence (FMC) outlook is now suspect, as most telecom operators have failed to deliver the mass of subscribers they promised. Despite this fact, Informa Telecoms and Media forecasts that over 190 million subscribers could be FMC users by 2013.

The propensity to hype new FMC services is an unfortunate characteristic of the mobile phone service industry, which leads to the services themselves being downplayed when they do not live up to expectations.

FMC subscribers are expected to increase by 2013 -- but these subscribers are only forecast to equate to around 5 percent of the global market, states Paul Merry author of Informa Telecoms and Media's report.

More seriously, mobile operators have failed to monetize FMC, continues Merry, "Within such an environment the justification for starting along the path to FMC becomes a real issue."

Of the subscribers forecast the majority will be device-based users, FMC subscribers who use a dual-mode capable device to access services, although femtocell subscribers will quickly grow to deliver 46 percent of the total FMC subscribers forecast by 2013.

Approximately 30 percent of device-based FMC subscribers will use data services in conjunction with voice in 2009 rising to 42 percent by 2013.

In order to identify the true value proposition of FMC one must look deeper at the changes FMC brings to the telecommunication service provisioning process. By looking at these changes one can identify the true value of convergence -- to a telco's internal business processes.

For example, FMC creates a number of efficiencies in the provisioning, management and quality of telecoms services offered delivering cost savings and providing tools to reduce churn and improve customer satisfaction.

The key to these improvements comes in the offload of data traffic from expensive cellular network platforms to fixed network infrastructure. The level of cost savings can be substantial with savings forecast to amount to approximately $5.3 billion by 2013 if operators deploy femtocell solutions in a wholesale manner.

The second major opportunity that FMC provides is as an anti-churn device with bundled service offerings acting as powerful incentives to lock-in customers. Bundled service offerings also allow operators to effectively compete through discounting with losses recouped by the increased use in other services.

Popular posts from this blog

Digital Solutions for Industrial & Manufacturing Firms

Executive leaders of fast-moving consumer goods (FMCG) are seeking guidance on how to apply new business technology in their manufacturing operations. CIOs and CTOs are tasked with gaining insight into the best solutions for digital transformation. ABI Research evaluated the impact politics, regulation, the economy, supply chain, ESG, and technology are having on FMCG, pharma, producers of steel, chemicals, pulp and paper -- as well as the mining and oil & gas sectors. Digital Transformation Market Development "Our assessment found that the FMCG sector is under pressure from all sides," says Michael Larner, industrial & manufacturing research director at ABI Research . Securing raw materials is challenging considering lockdowns in China and limited grain supplies from Ukraine. Supply shocks are raising input costs, and operating costs are rising with higher energy costs coupled with the pressure to pay higher wages and work sustainably. "We all hoped that with th

5G Fixed Wireless Access Revenue to Reach $24B

Available Internet access at an affordable cost is essential for everyone to participate in the Global Networked Economy. The deployment of fifth-generation (5G) wireless communications infrastructure is enabling the introduction of lower-cost broadband services in some markets. Fixed Wireless Access (FWA) allows mobile network operators (MNO) to deliver high-speed Internet connections in areas that have either insufficient or no prior wireline broadband access services. It's also used in urban, suburban, and rural areas where fiber optic communication is considered too expensive to install and maintain. With this new technology, MNOs have the potential to provide broadband capability at similar levels to fiber optic networks. Fixed Wireless Access Market Development Therefore, FWA can be used to supplement existing wired broadband Internet service offerings, provide additional broadband capacity, or act as a backup service for home or business applications. Although FWA is well es

Why the C-Suite Craves Digital App Acceleration

Business model evolution and growth are still top priorities for forward-thinking leadership. In fact, 70 percent of surveyed boards of directors will accelerate digital business initiatives, steering the organization to digitally-enabled growth. Chief Financial Officers (CFOs) also plan to protect their digital transformation investments as they cut costs elsewhere in their operations, according to the latest market study by Gartner. Among technology priorities, CFOs have particularly prioritized back-office business automation technology as a key to driving down costs in the face of ongoing inflation and supply chain challenges. Digital Applications Market Development A survey of CFOs found that digital business app acceleration was the top spending priority over the next 12 months, with 98 percent of respondents saying they will protect digital investments. Meanwhile, 66 percent of surveyed CFOs said they plan to increase their digital app investments. A separate survey of CEOs high