Consumers Adopting Dual Mode Phones for Fixed Mobile Convergence While Enterprises Lag Behind

Led by consumer demand, fixed mobile convergence (FMC) is taking off around the world, even as businesses watch from the sidelines, says a new study from Insight Research. According to the new market research report, over the next five years FMC will generate more than $35 billion in revenue for service providers and hardware vendors. FMC service allows the same handset to access telecommunications services through both fixed and cellular networks. The handset, which can toggle between fixed and mobile calling, can also leverage WiFi hotspots, voice over IP (VoIP) technology, and voice over wireless local area networks (WLANs).

According to the study, consumer demand is driving sales. Insight's study found a much slower adoption rate by enterprises because there was little economic incentive for either wireline service providers or cellular providers to promote FMC. It would mean revenue-generating calls would be moved off of their respective networks and onto the enterprise's WLAN.

"FMC represents another telecommunications area where the US is trailing developments in Europe and Asia," says Insight president Robert Rosenberg. "Europe was first to adopt FMC solutions, and it is forecasted to continue investing in the technology. In the US, however, the largest incumbents are replacing declining access line revenue with revenue derived from the sale of both wireless and broadband services, so there is little incentive at present to push FMC to consumers," Rosenberg concluded.

Posted to the site on 2nd October 2007