TMCnet LOGIN
Webinars
October 03, 2007
Analysys: UMA-based Fixed-mobile Convergence Not Best Approach for European Service Providers
By Mae Kowalke, TMCnet Contributor
The concept of using a single handset to access voice services from two different networks—fixed line and mobile/wireless—is getting a lot of attention these days. Often, this attention focuses somewhat narrowly on dual-mode services using Unlicensed Mobile Access (UMA
) technology.
) technology.Research firm Analysys thinks that, at least in Europe, this rather narrow focus could be distracting service providers from exploring all ways to deliver fixed-mobile convergence (FMC) options. Breakthroughs in this particular market, the firm said in a new report, will not come from a single technology but will need to involve a variety of creative approaches.
Alastair Brydon, an analyst at Analysys and co-author of the report, said most people think of FMC as referring to dual-mode handset services that use wide local area networks (WLANs) for voice signal in the home and workplace and cellular service in other location. This is just one potential definition for FMC, Brydon said, and so far it hasn’t been that successful an approach.
handset services that use wide local area networks (WLANs) for voice signal in the home and workplace and cellular service in other location. This is just one potential definition for FMC, Brydon said, and so far it hasn’t been that successful an approach.As an example, Brydon cited the experience of European carrier BT, which almost two years ago introduced a UMA-based service, has seen lackluster adoption of its FMC offering. The company has signed up roughly 40,000 customers to the BT Fusion service, only about 0.2 percent of its fixed-line subscribers.
Likewise, Deutsche Telekom (News - Alert) introduced its T-One service, a UMA-based FMC offering, in August 2006, but as of March, 2007 had only attracted 10,000 subscribers.
“There may be much better alternatives than dual-mode handsets if operators want to deliver successful FMC services,” Brydon said in the report.
Why are more subscribers not adopting FMC? Analysys said it’s because UMA-based services thus far are more complex to use than other voice services, and such offerings face strong competition. Also, the firm said providers could do a better job market these offerings to the most receptive market segments.
Improvements are being made to the UMA-based FMC proposition (e.g. broader range of available handsets), but these may not be enough because cellular services are also being enhanced while experiencing subscription price drops.
So what would a successful FMC service look like? Analysys said operators should be looking strongly at opportunities for market convergence—such as bundling fixed and mobile services in a single billing plan rather than delivering both services to a single device.
“Innovative converged marketing of fixed and mobile services can result in propositions that are much more appealing to end users than completely separate services,” report co-author Mark Heath said in a statement. “Marketing convergence can also avoid non-integrated operators being disadvantaged compared to integrated operators by their more limited opportunities with device and network convergence.”
To learn even more about fixed-mobile convergence, check TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP communications industry. The library offers white papers, case studies and other documents free to registered users.
communications industry. The library offers white papers, case studies and other documents free to registered users. Mae Kowalke previously wrote for Cleveland Magazine in Ohio and The Burlington Free Press in Vermont. To see more of her articles, please visit Mae Kowalke’s columnist page. Also check out her Wireless Mobility blog.
