Fixed Mobile Convergence (FMC): Trends and rollout strategies

• Business models and players
• Leading fixed-mobile convergence offers and services
• Fixed, mobile and integrated operators’ strategies
• Technologies and standards
• Regulation and fixed-mobile convergence

• What is the current state of development of FMC offers?
• At what pace, and in which markets, are these offers likely to develop?
• What are the different types of players involved, and how are they positioning themselves in the market?
• What strategies are the market’s central players adopting?
• What impact is fixed-mobile convergence having on competition between operators?
• What challenges does FMC pose for regulators?

1. Fixed-mobile convergence development factors

1.1. Main trends and telecom markets

1.2. Technical levers for the FMC market

1.2.1. Broadband deployment

1.2.2. Development of VoIP

1.3. Obstacles in the FMC market

1.3.1. Fixed-mobile substitution

1.3.2. Spread of prepaid services

1.4. Regulatory levers

1.4.1. Arrival of MVNOs

1.4.2. Number portability

1.4.3. Unbundling and bitstream

1.4.4. Naked DSL

1.4.5. Regulatory intervention in the field of fixed-mobile convergence offers

2. Fixed-mobile convergence technologies and standards

2.1. FMC architectures

2.1.1. Cordless Telephony Profile (CTP)

2.1.2. Unlicensed Mobile Access (UMA)

2.1.3. IP Multimedia Subsystem (IMS)

2.1.4. Choice between UMA and IMS

2.1.5. Femtocell

2.2. Level of deployment of FMC solutions

2.2.1. Deployment of FMS and NGN systems

2.2.2. Availability of handsets

2.2.3. Operators’ tchnical strategy

3. Leading fixed-mobile convergence offers and services

3.1. Substitution

3.1.1. Voice FMS on a single handset

3.1.2. FMS rate plan for voice

3.1.3. FMS Internet Access

3.1.4. FMS over other wireless technologies

3.2. Bundles

3.2.1. Voice FMC

3.2.2. FMC for Internet access

3.2.3. FMC for voice and Internet access

3.3. Convergent handsets

3.4. Convergent services

3.4.1. Telecom services

3.4.2. Software services

4. Operators’ strategies in the FMC context

4.1. Fixed operators

4.1.1. Strengths and weaknesses

4.1.2. Opportunities and dangers

4.1.3. Entry strategy for the mobile market

4.1.4. Product strategy

4.2. Mobile operators

4.2.1. Strengths and weaknesses

4.2.2. Opportunities and dangers

4.2.3. Entry strategy for the fixed sector

4.2.4. Product strategy

4.3. Integrated operators

4.3.1. Main strengths and weaknesses

4.3.2. Opportunities and dangers

4.3.3. Reorganisation and acquisitions

4.3.4. Approaches at network and infrastructure level

4.3.5. Rollout of convergent services and products

4.4. Summary

5. Growth prospects for fixed-mobile convergence

5.1. Analytical elements

5.2. Country cases

5.2.1. What are the prospects for FMC services in the United Kingdom ?

5.2.2. What are the prospects for FMC services in France?

5.2.3. What are the prospects for FMC services in Italy?

5.2.4. What are the FMC prospects in Germany?

5.3. General prospects

List of tables

Table 1: Growth in telecom subscriber bases in Western Europe, 2001-2006

Table 2: Broadband penetration in selected countries, September 2006

Table 3: VoIP subscriber bases in Western Europe, 2005-2006

Table 4: Mobile operators in Western Europe, mid-2006

Table 5: Mobile number portability in the major European Union countries

Table 6: Main naked DSL services and national situations

Table 7: Comparison of wireless interfaces

Table 8: Selected IMS applications

Table 9: Advantages and drawbacks of UMA and IMS architecture

Table 10: Deployment/tests of significance announced between 2005 and 2006

Table 11: Main FMC handsets available in UMA and SIP

Table 12: Convergence services via a handset

Table 13: Residential options for fixed-mobile voice on a single handset

Table 14: Example of voice substitution tariff rates for residentials

Table 15: Home Zone simulation

Table 16: Exemples d'offres résidentielles de plan tarifaire de substitution de données

Table 17: Examples of voice FMC bundle offers

Table 18: Selected residential rate plans of the FMC fleet type

Table 19: Selected business rate plans of the FMC fleet type

Table 20: Examples of FMC Internet access offers

Table 21: Examples of FMC Internet access and voice bundles

Table 22: FMC offers and FMC convergent handsets

Table 23: Unified number service offers and projects

Table 24: Unified voice mail service offers

Table 25: Fixed-mobile videophony services and offers

Table 26: Fixed-mobile portal offers and projects

Table 27: Operators’ FMC IM offers

Table 28: Fixed-mobile e-mail service offers and projects

Table 29: Co-branding agreements and reselling partnerships

Table 30: Fixed operators’ MVNO agreements

Table 31: Acquisitions of mobile operators by fixed operators

Table 32: New investments by fixed operators in the cellular or wireless sector

Table 33: Partnerships and reselling of services

Table 34: Mobile operators in the role of FVNO

Table 35: Mergers and acquisitions of fixed networks by mobile operators

Table 36: New investments in fixed or equivalent networks

Table 37: Examples of new integrated operator positions

Table 38: Players involved in FMC via integration or VNOs

Table 39: Structural components of fixed and mobile markets

Table 40: Market conditions in the United Kingdom

Table 41: FMC strategy of main operators in the United Kingdom

Table 42: Market conditions in France

Table 43: FMC strategy of main operators in France

Table 44: Market conditions in Italy

Table 45: FMS strategy of main operators in Italy

Table 46: Market conditions in Germany

Table 47: FMC strategy of main operators in Germany

List of figures

Figure 1: Telecom service revenues in Western Europe , 2001-2006

Figure 2: Fixed and mobile telephony in the home

Figure 3: Mobile traffic as proportion of voice traffic

Figure 4: Average traffic per mobile subscriber

Figure 5: Proportion of prepaid services in the mobile subscriber base

Figure 6: Unbundling in the major European countries in mid-2006

Figure 7: Simplified principle of an FMC voice communication

Figure 8: Principle of CTP

Figure 9: Principle of UMA

Figure 10: IMS at the core of NGN architecture

Figure 11: Femtocell principle

Figure 12: Types of FMC services

Figure 13: Example of a HomeZone

Figure 14: Situation indicators in the HomeZone area

Figure 15: Example of a Vodafone substitution box

Figure 16: UPC and One bundle in Austria

Figure 17: France Télécom’s Business Everywhere offer

Figure 18: Example of a convergent handset

Figure 19: Orange Unik handsets

Figure 20: Telecom Italia’s FMC portal

Figure 21: Mobile-only households

Figure 22: Layer change Metro

Figure 23: Example of FMC network

Figure 24: Operators’ priority strategy vis-à-vis fixed-mobile convergence

Figure 25: Development of FMC in national markets

List of insets/case studies

Inset 1: US example: Cingular’s FastForward

Inset 2: Other services: Telefónica’s Plug'n Talk

Inset 3: Other services

Inset 4: Case study: Virgin Media and the start of quadruple play

Inset 5: Case study: BT and developments in convergent handsets towards Wi-Fi

Inset 6: Case study; Free and the technological convergence approach

Inset 7: Case study: Cox Communications and mobile services

Inset 8: Case study: Vodafone and fixed-mobile partnerships

Inset 9: Case study: Bouygues Telecom and substitution as basic offer

Inset 10: Case study: H3G and its mobile-only strategy

Inset 11: Case study: O2, from substitution…to convergence

Inset 12: Case study: Telecom Italia and questions concerning FMC

Inset 13: Case study: Telekom Austria and new disruptive offers

Inset 14: Case study: KT and convergent handsets

Inset 15: Case study: Deutsche Telekom from convergence … to substitution

Inset 16: Case study: Orange UK in the face of Free Broadband bundles

Inset 17: Case study: France Télécom assumes a pro-active position