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Fixed-Mobile Convergence: Creating Value With Successful Business Models

Everything You Need to Know About the Converging Marketplace

Overview | Table of Contents | List of Exhibits | Target Audience | Author Bio

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Overview

Fixed-mobile convergence (FMC), one of several iterations of the convergence trend sweeping the industry, has been a hyped concept over the past 18 months. In practice, FMC is just starting to take shape: Prototypical services for enterprise and home users are in place in the developed markets of Europe, Asia and North America; the launch of bundled services and VoIP over wireless local area network (WLAN), as well as industry consolidation and integration of networks and platforms around Internet Protocol (IP), are all pointing towards convergence.

The attraction of FMC lies in its promise: It seeks to enable the delivery of user-centric ubiquitous services, improve customer loyalty, and ensure capital expenditure (CAPEX) and operating expenditure (OPEX) cost reduction through a migration to IP. But FMC is as much a threat as it is an opportunity. Service providers stand to exploit new revenue streams and increase their share of the subscriber wallet. On the flip side, they will lose customers if they do not take action, and they possibly stand to lose revenue if they move to convergent packages.

Pyramid Research’s report benchmarks major converged network strategies and answers three key questions:
• Does FMC translate into value destruction or value creation for carriers?
• Which markets and providers will lead FMC globally over the next five years?
• What is the size of the fixed mobile convergent service opportunity, now, and over the next five years?

The report analyzes the implications of migration to IP on fixed and mobile service provider revenue, analyzes the business case for the launch of convergent services for different types of operators, and ranks markets globally according to their readiness and suitability for fixed-mobile convergent services.

Fixed-Mobile Convergence: Creating Value with Successful Business Models provides you with the information necessary to approach the converged services opportunity. This report covers:
• Converged and traditional communications service revenue forecasts
• FMC's impact on revenues, profitability, and subscribers
• When and how operators should enter the FMC market
• FMC's incremental value to carriers
• Assessment of FMC technology drivers
• Best practices of current operators' converged offerings


Table of Contents

Section 1: Executive Summary 

Section 2: FMC — Between Hype and Reality 
2.1 FMC — It’s About More Than Converged Network Elements 
2.2 Analyzing FMC Drivers: Substitution, VoIP, Demand for Service Ubiquity 
2.3. Analyzing the Technology Enablers of FMC 
2.4 Between Hype and Reality: Making FMC Work 

Section 3: Paths to Convergence — Towards the Integrated Service Provider 
3.1 The Fixed Operator Path: Heightened Sense of Urgency Drives Telco FMC 
3.2 Mobile Carrier Path — Will Need Convincing, But There’s Upside 
3.3 The Service Path to Convergence 
3.4 Which Markets Will Converge First? Global Convergence Rankings 
3.5 Can FMC Happen in Emerging Markets? 
3.6 Convergence Without Converged Services 

Section 4: Fixed-Mobile Convergence: Value Creation or Value Destruction?
4.1 Impact of Convergence: The Market Perspective 
4.2 Impact of Convergence: The Service Provider’s Perspective 

Section 5: FMC Implications — Towards an Industry Shakeout 
5.1 Driving a Structural Industry Shakeout 
5.2 The Wary Eye of Regulation is on FMC 
5.3 Infrastructure Suppliers and FMC: The Rules of the Game are Changing Here Too 


List of Exhibits

Exhibit 1: FMC: Telecom Networks and Products View 
Exhibit 2: FMC: Convergence of IT, Computing and Mobile
Exhibit 3: Traffic Composition in Mature Markets: Fixed, Mobile, IP 
Exhibit 4: Global Fixed-Line Revenue — Decline in the Developed Markets 
Exhibit 5: Major European Incumbents — Net Debt Problems, 2004 
Exhibit 6: Major Operator Plans for Move to All-IP Networks 
Exhibit 7: VoWLAN: Different Types of Approaches 
Exhibit 8: Global Cellular-Wi-Fi Handset Sales, 2004-2005 
Exhibit 9: Major Strategic Considerations Driving FMC 
Exhibit 10: FMC Status of Selected Incumbent Telcos Globally 
Exhibit 11: FMC Services: Next Moves for Different Types of Operators 
Exhibit 12: Service Convergence Progression 
Exhibit 13: Pyramid Research Ranking of the Early Adopter Convergence Markets 
Exhibit 14: Mobile Penetration in the Emerging Markets 
Exhibit 15: Consumer Monthly Communications Spend 
Exhibit 16: The ARPU Effect on Converged Services
Exhibit 17: Convergent Telecom Revenue, 2004-2009


Target Audience

Vendors and Solutions Providers
This report will help you understand the market potential for different types of convergence in developed and emerging markets, and identify the countries and players that will drive FMC in the next 5 years. 

Fixed Service Providers
This report will help you assess the impact of converged networks on revenue and profitability, and understand the major drivers behind FMC for different types of wireline operators.  The report reviews new technologies enabling FMC and through best practice studies, provides examples of budding convergent services (e.g. bundled service and VoWLAN enterprise offerings,among others).

Mobile Operators
This report will help you assess the impact of convergence on revenue and profitability, as well as understand major drivers behind convergence for mobile players. The report provides answers to the following questions: Can FMC happen without mobile operators? Can mobile operators afford to wait?


Author Bio

Svetlana Issaeva
Manager, Communications, Media and Technology
Focus Areas: Europe, Eastern Europe and CIS, Mobility

Based in London, Svetlana Issaeva is responsible for coverage of mobile, fixed line and Internet industries of Western Europe and Central and Eastern Europe (CEE). Svetlana is responsible for analyzing service provider and infrastructure supplier trends in Europe, focusing on the impact of market and technology dynamics on Pyramid’s forecasts. 

Svetlana is frequently quoted in the industry press, including the Wall Street Journal Europe, Wireless Communications International and The Moscow Times. She regularly presents papers and chairs telecoms industry conferences throughout Europe, including events organized by The Economist Conferences, the Adam Smith Institute, Marcus Evans, EuroForum and IBC. Prior to joining Pyramid Research, Svetlana worked as a computing and multimedia consultant.

A native of Russia, Svetlana holds a Master of Arts in International Relations from Syracuse University, with concentrations in international economic policy and European studies.

Questions?  Contact info@pyr.com or call +1.617.494.1515 to speak directly with a Pyramid Research associate.



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