The United States is expected to lead the world in the adoption of fixed-mobile convergence through the end of the decade, with 7 percent of voice telephony consumers using an FMC product by 2010, according to a report released last week by Strategy Analytics.
“North America will buck the global trend, where cellular-based solutions rather than converged fixed-mobile voice services will dominate,” said David Kerr, vice president of Strategy Analytics’ Global Wireless Practice. “Advanced penetration of Wi-Fi networks, a robust cell-phone replacement market, spotty in-building cellular coverage, and a dynamic broadband and cable industry will combine to keep cellular-only users at bay in the U.S.”
Kerr noted that cable TV providers have the most to gain in terms of revenue from such convergence, and early moves by entrenched telecom providers show a need to protect their existing positions in the fixed and mobile voice markets.
“This will not be a market driven by pent-up consumer demand,” added Phil Kendall, director of Strategy Analytics’ Wireless Network Strategies service. “It will be molded by friction between wireless and wireline operators, between cable MSOs, broadband providers and triple-play telcos.”
As Strategy Analytics touts the coming fixed-wireless convergence market, though, many consumers are looking to cut the cord and go exclusively wireless, as indicated in a study from Harris Interactive. The report, also issued last week, suggests 52 percent of all U.S. adults are considering abandoning fixed-line service for wireless, and 9 percent already have cut the cord.
But while Harris expects fixed to mobile growth, 39 percent of all adults polled say they will never abandon their home phone service. More than one-fourth of those consumers cited the safety of a traditional phone line, while 20 percent said they need a home phone for Internet access.
The study suggested carriers can help entice users to drop their home lines by reducing pricing plans, improving coverage areas and offering money-back guarantees for wireless service.
“These results show that many consumers are actively seeking out alternative telecommunications services, and the options are out there,” said Joe Porus, chief architect for the Technology Research Practice at Harris Interactive. “While the majority of consumers are happy with their landline service, the movement toward wireless replacement options clearly shows that consumer sentiment is changing.”
Indeed, fixed-wireless convergence is a hot topic. Other announcements that garnered attention last week include:
c France Telecom and Microsoft Corp. announced a partnership to develop multimedia products and services for mobile and fixed networks. The companies will produce interactive services on intelligent and interconnected terminals, as well as products and services enabling fixed-mobile convergence for businesses and consumers.
The first two projects within this partnership will be announced at a July 6 press conference, the firms said. The first project involves joint development work in the mobile field, while the second will produce broadband services.
The agreement focuses on sharing development efforts and intellectual property resulting from the partnership. France Telecom said the work will help it pursue its integrated operator strategy focusing on developing integrated services for its customers, regardless of their access network.
Microsoft and France Telecom previously worked together to launch the first smart phone on the market under the Orange plc brand using Microsoft’s mobile operating system.
c Unlicensed Mobile Access technology will allow wireless carriers to accelerate residential telephone fixed-to-wireless substitution while increasing average revenue per user and decreasing churn, according to another new report. The study forecast 55 million dual-mode subscribers by 2010.
UMA technology allows subscribers to roam and hand over between cellular networks and unlicensed wireless networks using dual-mode GSM/GPRS and UMA-enabled devices.
The Alexander Resources report said convergence of Wi-Fi and cellular networks will generate an estimated $1.6 billion in new revenues for U.S. wireless carriers by 2010. The report, “UMA and Beyond: Mobile Operators Benefit from Wi-Fi and Cellular Convergence,” also claims that traditional landline telephone will lose $399 million in revenues by 2010 from fixed-to-mobile substitution, and UMA also may provide competition for Voice over Internet Protocol since comparable pricing and functionality are expected.
c Korean technology company Clipcomm and U.K. software developer Cambridge Consultants unveiled a Bluetooth-enabled wireless telephony access point for home use. The offering, which was created for Korea Telecom’s OnePhone fixed-mobile-convergence service, uses Bluetooth to allow mobile-phone users to make or receive calls over a home fixed wireline network.
“Bluetooth is now finding its way into many more complex applications,” said Tim Fowler of Cambridge Consultants. “Engineers can really exploit its facilities to rapidly create powerful Bluetooth products, as Clipcomm’s engineers have demonstrated on this remarkable development project.”
