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Focus on Market Needs, Not Technology, Will Drive Fixed-Mobile Convergence

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When it comes to fixed mobile convergence (FMC), operators are putting too much emphasis on the technology, and not reflecting what the market actually wants, says research firm, Analysys.

"FMC has a long and chequered history, and many are still unclear about what it is," says Andrew Parkin-White, Principal Analyst at Analysys and co-author of Mobile Market Perspectives 2008.

"The approach taken by operators is motivated by a typically telco-centric view of the world, giving only limited consideration to what the market is really seeking. Most of the industry focus on FMC is concerned with device convergence - particularly with dual-mode handsets based on UMA."

Parkin-White warns that other market opportunities for UMA could hinder the success of dual-mode services. Pure mobile services will become increasingly effective at delivering voice telephony in all environments, he feels.

"We believe that only a few integrated incumbent operators will achieve significant success," says Parkin-White. "Network operators will need solutions for fixed and mobile access if they are to support a comprehensive combination of voice and data services. This approach does not imply that network operators must own fixed and mobile access solutions. Marketing convergence could have a more significant short-term impact on the telecoms industry than device and network convergence. Marketing convergence can provide customers with compelling reasons to subscribe to a range of fixed and mobile services. Reasons could include saving money, without necessarily facing the substantial challenges of device and network convergence."

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