FMC Will Become the Star of Fixed-line Communication Market

Analysys International has issued a report which concludes that FMC (Fixed- Mobile Convergence) will become the new star of the fixed-line communication industry, replacing Qbox. According to the research, FMC has obvious phase features. In the initial stage, FMC terminal products will help maintaining traffic for fixed-line communication operators, and the multi-service terminal products will be effective for user retaining.

Analysys International thinks that 3G-based FMC converged terminals will become a star in the future telecom market and attract attention from all aspects, contrasting to the current Qbox with limited developing potentials. In the medium developing phase, FMC will reduce the total costs of multiple service operations and the effectiveness for user retaining of multiple-service terminals will be more notable. In the final phase, FMC will reduce costs by converging fixed-line networks with mobile telecom networks and increase revenue by providing genuine total services.

Analysys International thinks that China's FMC market is still in the market initiation phase. As China's 3G landscape gradually becomes clear, 3G-based FMC terminals will gradually replace Qbox and become fixed operators' killer application.

''Currently, China's FMC terminal market size is relatively small and cannot generate considerable profits for service providers. It will take a relatively long time for this market to enlarge and mature,'' says Tian Xiaodong, an analyst from Analysys International, ''The FMC service convergence and network convergence market will become a hotspot for telecom equipment suppliers and system integrators in the future. And the market share will more concentrate on major core equipment vendors.''"

Article published on 11th January 2006