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Consumers Want FMC: Companies Don't See The Benefit |
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Written by Adam Gosling
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Wednesday, 03 October 2007 |
A
new research report available from Insight Research says the demand for
Fixed to Mobile convergence is all on the consumer side, while
companies are more cautious in adopting the new technologies.
As
is often the case in mobile technology developments, where corporate IT
managers are fearful of putting too much stock into devices they have
less control over, the demand for Fixed to Mobile convergence is being
driven by consumers, according to the report Fixed Mobile
Convergence: Single Phone Solutions for Wireline and Wireless from Insight Research.
The report says that consumer
demand for the technologies, which lets the same handset access telecommunications
services through both fixed and mobile networks, is taking off around the world and will
generate more than US$35 billion in revenue for service providers and hardware
vendors over the next five years.
FMC
is a key factor in the development of mobile VoIP solutions which allow
the user to switch between their mobile call and IP Telephony services
running over WLANs and WiFihotspots.
"FMC represents
another telecommunications area where the US is trailing developments in Europe
and Asia," says Insight president Robert Rosenberg. "Europe was first to adopt
FMC solutions, and it is forecasted to continue investing in the
technology. In the US, however, the largest incumbents are replacing declining
access line revenue with revenue derived from the sale of both wireless and
broadband services, so there is little incentive at present to push FMC to
consumers," Rosenberg concluded.
The
study found enterprises were slow to take up the technology in part
because the service providers, either fixed or mobile, were not
providing any economic incentive to them because it might moving
"revenue-generating" calls off their networks and onto the enterprise's
WLAN.The study finds US companies are behind the adoption curve compared to their European and Asian counterparts.
If the use of fixed to mobile substitution is any indication of what
the carrier's and service providers can expect, there's clearly little
economic incentive for them to push the technology. As consumers
substitute wireless for wired their has been a steady decline in the
customer base and revenue for fixed local and long distance providers.
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