Navi Mumbai, Maharashatra India (PressExposure) January 31, 2008 -- Thus far in the global market the substitution effect has been one way: many consumers are substituting a wireless phone for wired phone and making their wireless service their only telephone service. For local and long distance companies this trend has been disastrous-resulting in a steady decline in the customer base and revenue.
In this study, Insight examines the potential impact that the single phone with fixed and mobile capability will have on the stakeholders: local wireline carriers, long distance providers, broadband ISPs, wireless carriers, and handset vendors. This report details the technologies and marketing enablers that each stake holder segment must address to achieve a successful convergence strategy.
Based upon our analysis of current international wireless-wireline convergence initiatives, Insight details how the various global communications environments are producing different models for success. The study concludes with a forecast of the market for convergence products internationally, assessing which strategies are presently the most successful.
Fixed mobile convergence (FMC) is taking off around the world, though its take-up may not be apparent in the US, where momentum is still building. FMC is a service in which the same handset has access to services through a fixed network in addition to a wireless network. The same handset can be used in the home and office and also send and receive cellular calls when traveling in the wider world.
FMC suffered early on from too many technical approaches and too few standards. A number of operators conducted trials but hesitated to commit to full deployment. Fortunately, that period is behind us. Standards have been established and the industry seems to have coalesced around the dual mode WiFi/cellular approach. Operator trials have been replaced by new product announcements and large scale deployments have begun-at least in the consumer segment.
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