Fixed Mobile Convergence Could Increase Churn

A recent research study, conducted by ORC International in the UK, has revealed that consumers are willing to change mobile network provider and/or their Internet service provider (ISP) in order to move to a supplier offering a fixed-mobile convergence service.

Such a service - which enables users to switch from their mobile network and connect calls through a broadband Internet connection when at home - is clearly an attractive proposition, principally through the costs savings which can be achieved using VoIP (Voice over Internet Protocol) services.

The research was carried out through ORC International's newly launched online mobile consumer panel - the ORC OmniPanel - in April 2006. Findings from the study underline the growing importance of the network operator, ISP 'double play' as the marketplace becomes more educated as to the potential advantages of sourcing mobile and fixed line services from a single provider.

More than 40% of the 500 consumers interviewed would be prepared to change their broadband provider in order to take-up the FMC service, while the same proportion would take the step of moving to a new mobile provider in order to do so.

Research director at ORC International, Simon Nelson commented: "The marketplace is opening up as consumers assimilate the potential that the new technology can finally offer. On the supply side, the implication for mobile operators, mobile virtual network operators and ISPs alike must be plain - is this an opportunity or threat?"

Of the respondents interviewed:

These older 'Silver Surfers' also showed the highest propensity to use VOiP and to make changes in order to procure the fixed-mobile convergence service."

Posted to the site on 22nd May 2006

Posted to: www.cellular-news.com/story/17464.php