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Fixed-mobile Convergence (FMC) Markets in EuropeProduct Type: Market Research ReportPublished by: Frost & Sullivan Published: November 2006 Product Code: R1-5424 Description Research OverviewThis Frost & Sullivan research service titled Fixed-Mobile Convergence (FMC) Markets in Europe focuses on the European FMC environment and analyses key drivers and restraints. It also provides an overview of the different strategies employed by some of the larger and more influential telecommunications operators in Europe. The operator strategy analysis aims to unveil the pertinence of FMC and the challenges that need to be overcome. Technologies The following technologies are covered in this research:
FMC Markets in Western Europe Gain Momentum With the advent of new technologies and innovations in Europe, telecommunication service providers are increasingly offering fixed-mobile convergence (FMC) as a strategic service to reduce churn and attain customer loyalty. FMC solutions enable carriers to offer end users a wide range of core services, irrespective of the device or access network available to them. With the need to store information such as contacts, messages and calendar, among others, service providers are assuming an increasingly important role. "FMC will drive the adoption of next-generation handsets, primarily dual-mode wireless fidelity (Wi-Fi)/cellular handsets, which will enable users to seamlessly handover from a cellular network to a Wi-Fi network and vice versa, so as to provide optimum quality of service (QoS)," says the analyst of this research service. "This will benefit both end users and carriers. While carriers can use wireless local area networks (WLAN) to improve coverage inside buildings, end users can avail cheaper voice calls by connecting to the WLAN network." One of the advantages of having WLAN capabilities in a dual-mode device is to run high bandwidth data applications. With the evolution of high speed downlink packet access (HSDPA) in 2006, cellular carriers are able to get throughputs in the range of 1.8 to 3.6 Mbps, which will increase to 14.4 Mbps in 2007. This will practically meet the requirements of an average user. Presently, the variety of dual-mode handsets in the commercial market from different terminal vendors is very limited and these sets are expensive in comparison to GSM handsets. Hence, dual-mode handsets will need to be priced low to achieve high-scale adoption. Bundled Services Essential to Increase Customer Loyalty In April 2006, the UK Regulatory Board, Ofcom, granted UK GSM spectrum licenses to 12 carriers in the digital enhanced cordless telecommunications (DECT) guard bands of 1781.7 to 1785 MHz band paired with the 1876.7 to 1880 MHz bands. Due to the regulation of power emission levels by Ofcom, the coverage and performance of such GSM licenses will be similar to that of Wi-Fi and the spectrum license will be primarily used for indoor coverage at homes and enterprises. However, while users will need a dual-mode handset for Wi-Fi, these low power licenses can work on cheaper GSM handsets. If this proves successful in the United Kingdom, the trend will gain acceptance across Europe. Overall, one of the key issues in the market is the lack of perceived return-on-investment by deploying FMC solutions. "Many carriers rightly argue that investing in infrastructure and systems to offer converged solutions is not likely to provide adequate payback," explains the analyst. "This belief is further reinforced since several mobile carriers that had invested enormously in 3G deployments and licenses faced low customer adoption for their services due to the poor performance of 3G technology. Besides, developing FMC services can be time-consuming and costly because of the diverse technologies and protocols used in different networks." In addition, end users will expect attractive bundles and subscribe to a single supplier for more services. Hence, carriers will need to adapt to the changing environment and focus on increasing customer loyalty as an important objective, along with increasing revenues. Operators with the capabilities to offer FMC services must create attractive value propositions, develop awareness of their services, and provide customer support. Table of Contents
1. FMC Markets in Europe List of Figures |
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