FMC: A Driving Trend Cont'd (Cont'd)

Analysts forecast that FMC will be the strongest trend in telecom in the next three years. Users have become used to mobile phones in addition to fixed lines and analysts report that they would welcome closer integration of the two. FMC also benefits the operator. Instead of addressing each aspect of a subscriber's services on separate infrastructure components, FMC provides a consolidated network architecture framework. Furthermore, FMC presents fixed operators with a golden opportunity to generate new revenue streams and act as a one-stop-shop for customers with both fixed and mobile needs, as well as to defend against the mobile substitution trend. Similarly, FMC is attractive to mobile operators hoping to convince fixed-line users to make the final choice between the fixed and mobile networks.

Where fixed operators have a wide fixed-network in place, however; they have a definite advantage over mobile operators. Fixed lines are still far more widely used than its mobile counterpart, especially in business. The fact remains that fixed lines are cheaper than mobile, with the volume of voice traffic on fixed lines two to three times larger than that of mobile voice traffic . Mobile operators will have to increase their capacity by two or three times in order to carry the same volume of calls as the fixed line operators, which is a costly process. The internet is an additional advantage fixed operators have over mobile operators. Fast internet and broadband is quickly capturing the market. A fixed line is imperative to ADSL subscribers and therefore gives fixed operators the benefits of bundling voice and data services. There are a few vendors in the market that offer a FMC solution; however, not all of the vendors provide a complete FMC solution.

Fixed Mobile Convergence adds a new dimension to the telecom industry by removing the physical barriers that currently prevents telecom service providers from penetrating new markets. By doing such, Fixed Mobile Convergence is changing the future of the telecommunications industry.

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