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France to emerge as the strongest fixed in mobile

1 September, 2005
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France to emerge as the strongest fixed in mobile

globaltelconews-admin by globaltelconews-admin
1 September, 2005
in English
0

The report concludes that the many supply-side variables and differences in market competition between Western European countries will lead to significant variations in market adoption of FMC.

Due to the strategic fit between FMC and the incumbent’s long-term growth plans, FMC penetration of households in France will be the highest in Western Europe by 2010 with 2.5 million households subscribing to FMC services (10% penetration). Despite early initiatives in Germany and the UK, growth will be slower in these markets, with a household penetration of 7% in both countries in 2010.

Enabling this change are new services that harness the best of both fixed and mobile worlds by utilising network and end-user technologies aligned around Internet Protocol (IP) standards. “In consequence, many operators are placing strategic bets on fixedmobile convergence (FMC) to satisfy an expected demand from customers for personalised communications services accessed by the best available network,” observes Stephen Sale, the report’s author.

Fixed to mobile convergence: opportunities and strategies for the mass market assesses the different strategies available to market participants and examines the likely impact that this will have on the industry. As country markets are evolving at different rates, the report draws on case studies from international operators to illustrate the evolving market. The report also provides forecasts for fixed to mobile convergence, including number of subscribers and potential handset sales in Western European markets.

Integrated operators will be best positioned to take advantage of the FMC opportunity. “Ownership of both fixed and mobile access networks will allow integrated operators to extract more value from the applications they deliver,” continues Stephen Sale. “The challenge for these players is to move from a organisation structure divided on the lines of network infrastructure to one that is oriented towards the customer.”

The report estimates that there will be approximately 20 million individual FMC subscribers in Western Europe by 2010; however early adoption will be slowed by levels of dual-mode handset availability, which are not expected in volume before the end of 2007. Annual handset sales in the region are expected to reach 12.5 million in 2010

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