This IDC study looks at fixed-mobile convergence (FMC), an emerging phenomenon that will have profound impact on the telecom industry. With cellular markets reaching near saturation and slower subscriber growth, FMC is currently one of the crucial strategic issues in the telecommunications industry, as mobile telecommunication services are rapidly becoming a substitute to fixed telephony. The migration of carriers from "stove pipe" networks architecture to service oriented or layered architecture is slowly gaining traction, thanks to IP enabling the collapse of several complex networks to a multi-service network. This will allow SPs to sell capability rather than capacity and move from a product to a customer focus.

As service providers (SPs) put strong emphasis on their next-generation strategies and ubiquitous broadband access, FMC is wedging its way as the next logical step of convergence after voice and data over a single IP network. With the buzz created around FMC, the attention is drawn to the integration of WiFi, broadband and cellular network technologies," says Landry Fevre, research director, Telecommunications, IDC Australia.