Dual Telephony: Another Step Towards Converged Services
Convergence has been a key term in the telecommunications and technology industries in the last few years. Traditionally the term relates to the use of a single network for the full range of services, but an extension of the idea is the use of a single device for multiple services.
Dual telephony is one of many convergent services the industry is able to offer today as a way to unify communications over IP and GSM networks in one service and a single handset.
According to Juan Gnius, analyst at telecoms consultancy Signals Telecoms Consulting, this type of hybrid wireless telephony is based on Unlicensed Mobile Access (UMA) technology. With this standard operators are able to provide access to GSM/GPRS mobile services over Wi-Fi or Bluetooth local networks that operate on free spectrum.
"By implementing UMA, operators are able to offer roaming and handover between mobile networks and public and private networks operating over this free spectrum, using dual mode devices," Gnius said.
THE CORPORATE SOLUTION
The Chilean unit of US networking solutions provider Cisco has implemented a demonstration room for clients to test a phone that combines GSM and IP communications over a Cisco IP network. The system was developed along with Finnish mobile equipment manufacturer Nokia.
Using this device, clients are able to use their mobile line in the usual way when they are out and about, but also to use the handset as their office extension line wherever they have internet access, routing communication over the corporate IP network.
"If you have wireless coverage and a Cisco IP telephony solution, the phone connects automatically to the network. So in one phone you can have access to your corporate extension, mobile phone and the directories of both. Convergence works transparently and you win mobility inside the company," Cisco Chile service provider channel manager Rafael Fuentes told BNamericas.
The device is also able to work with any mobile operator since it only needs the SIM card to start operating. Fuentes sees this solution penetrating strongly among the corporate segment and eventually expanding to SMEs.
For Nicolás Cuzmar, traffic business manager at mobile operator Movistar Chile, dual telephony satisfies the basic need of the corporate segment, which is for employees to have voice and data communication with the rest of the company at all times.
"Under this concept, dual telephony could satisfy this need as long as there are handsets with long running batteries and access to value added platforms the company has available," Cuzmar said.
CHALLENGES FOR A WIDESPREAD SOLUTION
Cuzmar and Fuentes agree that penetration of this type of solution beyond the corporate segment will eventually occur in Latin America, particularly because fixed line penetration in the region is declining.
"The market is betting on substituting fixed telephony with mobile hybrid phones and when operating inside the house [mobile operators] will compete with fixed telephony, with the advantage of having one number and one device," Cuzmar said.
The challenge for mobile operators is to be able to offer traffic at the same price as fixed line operators do today.
Gnius agrees that in Latin America there is increasing substitution of fixed telephony for mobile telephony and hybrid systems will undoubtedly increase this tendency.
However, the potential in Latin America is limited given the two largest mobile operators, Movistar and América Móvil, have fixed line sister operators in most markets, operated by Telefónica and Telmex, respectively.
"América Móvil is not likely to promote this technology in Mexico because it would go against Telmex's interests. But it might promote it in countries where Telmex does not have strong penetration. Nor do I see Movistar implementing UMA where Telefónica is incumbent, and even where it is not, considering the synergies they are seeking as a unified company," Gnius added.
THE LATAM MARKET
All three executives nevertheless agree that Latin America is an interesting market for this technology and for Cuzmar the Chilean market is even more attractive given the maturity of the mobile business.
"The high penetration of mobile phones and the government's efforts to increase broadband connectivity will help promote the technology. Besides, it will be interesting considering there are so many hotspots in Chile," Cuzmar said.
Gnius agrees that there is potential for operators to expand their offerings, but mobile operators in the region are focused today more on basic services and increasing the use of data traffic, even if there have been dual telephony implementations in Europe and the US.
"Implementations based on UMA will be attractive for operators not related to a fixed operator and focused especially on the corporate segment. It will still not be a widespread service since there are also regulatory issues in several countries over VoIP. However, these solutions will arrive in the region once they are mature in developed markets," Gnius said."
Posted to the site on 17th January 2007
