Fixed-Mobile Convergence in the business World

• What strategies are Europe’s most advanced operators using in their offers?
• Around which relevant segments is the market being structured (services, customers, etc.)?
• What forces are driving or impeding the enterprise fixed-mobile convergence market?
• What will the FMC market be worth in 2013, and what share of the mobile services market for businesses will it have?
• Analysis of more than 45 FMC offers being marketed by 26 carriers in France, Germany, Italy, Spain and the UK

1. Executive Summary

1.1. A rather large and disparate offering

1.2. Offers based on wide selection of handsets

1.3. Market forecasts

2. Methodology

3. Fixed-mobile convergence: market context

3.1. Mobile take-up in the workplace

3.2. Definition of fixed-mobile convergence

3.3. Fixed-mobile convergence architectures

3.3.1. Wireless technologies integrated into dual-mode handsets

3.3.2. Unlicensed Mobile Access (UMA)

UMA players

UMA, a more suitable FMC technology for mobile operators

How UMA works

3.3.3. IP Multimedia Subsystem (IMS)

How IMS works

IMS, for developing new services

3.3.4. Choosing between UMA and IMS

3.3.5. Femtocell

Alternative to dual-mode

Avoiding the Wi-Fi trap

Still nascent technology

3.3.6. Compatible handsets

4. Catalogue of available fixed-mobile convergence offers

4.1. Players examined

4.2. Guide to reading summary tables

4.3. Summary tables of operators’ offerings, by country

4.3.1. Operators’ offers for the German market

Deutsche Telekom/T-Mobile

O2 Germany

Vodafone Germany

E-Plus

4.3.2. Operators’ offers for the British market

Vodafone UK

Orange UK

BT Global Services (multinational solution)

T-Mobile UK

O2 UK

Three ("3")

4.3.3. Operators’ offers for the Spanish market

Telefónica Spain/Movistar

Orange Spain

Vodafone Spain

JazzTel Spain and Ono

4.3.4. Operators’ offers for the French market

Orange France

SFR

Bouygues Telecom

Altitude Telecom

4.3.5. Operators’ offers for the Italian market

Telecom Italia/TIM

FastWeb

Vodafone Italy

Wind

Tiscali

" 3 " (H3G Italy)

BT Italy ("ex Albacom")

5. Analysis of available offers

5.1. FMC market operators

5.1.1. Operators absent from the fixed-mobile convergence offer

5.1.2. Operators present in the fixed-mobile convergence market

5.2. Construction of convergence offers

5.3. Analysis of market player offerings

5.3.1. FMC pricing offers

5.3.2. FMC service offers

Basic FMC service offerings

FMC advanced service offerings

5.3.3. FMC mobile handset solutions

5.3.4. FMC software solutions

6. Markets and forecasts

6.1. Feedback from the French market

6.1.1. Feedback from the field on FMC

6.1.2. The fixed VoIP market

Take-up

Impediments

Devices

Incentives to switch to VoIP

6.2. Market forecasts

6.2.1. Demographic elements

6.2.2. Market modelling - France

Background on the French mobile services market

Modelling of the enterprise mobile services market in France

Modelling of the enterprise FMC market in France

6.2.3. Other countries

Reminder of mobile market development

Comparative positioning

Assessment of the enterprise mobile services market in Western Europe

Modelling the enterprise FMC market

7. Appendix: Survey and census method

7.1. Scope of enquiry

Complete census

Internet connection levels

SMEs still without an Internet connection

7.2. Survey outline

List of Tables

Table 1: Evolution of the enterprise mobile services market in Western Europe’s five largest markets

Table 2: Evolution of the enterprise FMC services market in the five largest Western European markets

Table 3: Comparison of wireless interfaces

Table 4: Examples of IMS applications

Table 5: Advantages and drawbacks of UMA and IMS architectures

Table 6: UMA-compatible handsets

Table 7: Wi-Fi-compatible smartphones

Table 8: List of operators examined in this report

Table 9: Symbols used in the analytical tables of the offers

Table 10: Cost of Internet access with the Rete Unica Su Misura offer (July 2009)

Table 11: Rete Unica Su Misura pricing plan for voice calls (July 2009)

Table 12: Cost of the BT Fusion offer marketed by BT Italy (July 2009)

Table 13: Operators absent from the FMC market

Table 14: Operators positioned in the FMC segment

Table 15: Operators that market an FMC pricing solution

Table 16: Operators that market FMC solutions with basic voice VPN features

Table 17: Operators that market FMC solutions with advanced features

Table 18: Operators that market FMC handset solutions

Table 19: Operators that market FMC software solutions

Table 20: Penetration of fixed-mobile convergence solutions in the SME segment in France in 2008, according to company size

Table 21: Penetration of fixed-mobile convergence solutions in the SME segment in France in 2008, according to sector of activity

Table 22: Rate of VPN solution adoption in the SME segment in France in 2008, according to company size 61

Table 23: VoIP solutions used by SMEs in France in 2008, according to company size

Table 24: Reasons cited by SMEs in France in 2008 for not adopting VoIP, according to company size

Table 25: Device used by SMEs in France for VoIP in 2008, according to company size,

Table 26: Reasons for switching to VoIP, according to company size

Table 27: Working population, end 2006

Table 28: Census of enterprises and working population in France, end of 2006

Table 29: Hypotheses - Mobile services market modelling - France

Table 30: Hypotheses - Modelling of the enterprise FMC market - France

Table 31: Hypotheses: Mobile services market revenue in the five countries examined, 2006-2013

Table 32: Positioning of the different countries compared to the situation in France

Table 33: Growth of enterprise customer bases in the top five Western European markets, 2006-2013

Table 34: Growth of the enterprise mobile services market in the top five Western European markets, 2006-2013

Table 35: Positioning of the different countries compared to the situation in France

Table 36: Growth of the enterprise FMC services segment in the top five Western European markets

Table 37: Number of SMEs by company size and sector of activity, end of 2006

Table 38: Definition of the sectors

List of Figures

Figure 1: Building blocks of FMC offers by targeted market segment

Figure 2: Mobile subscriber base and density in Western Europe, end 2008

Figure 3: Mobile subscriber base and density in Western Europe, forecasts for 2009-2012

Figure 4: The different types of fixed-mobile convergence

Figure 5: Simplified scheme of an FMC voice call

Figure 6: How UMA works

Figure 7: IMS in an NGN architecture

Figure 8: Evolution of IMS service platforms

Figure 9: How femtocell works

Figure 10: Femtocell market outlook, by geographical zone

Figure 11: Femtocell market outlook, in units sold

Figure 12: The Octopus Mobility Services solution

Figure 13: The Genion solution

Figure 14: The Vodafone One solution

Figure 15: How the Orange Unik PC solution works

Figure 16: Altitude’s Two Easy solution

Figure 17: The Unifast Communication offer for large accounts

Figure 18: Vodafone’s Rete Unica Facile offer

Figure 19: Vodafone’s Rete Unica Su Misura offer

Figure 20: Building blocks of FMC offers by targeted market segment

Figure 21: Operators’ positioning with FMC solutions with basic voice VPN features

Figure 22: Operators’ positioning with FMC solutions with advanced features

Figure 23: Operators’ positioning with FMC handset solutions

Figure 24: Penetration level of FMC offers in the SME segment in France in 2008

Figure 25: Proportion of SMEs in France in 2008 with fixed telephony subscriptions based on VoIP/ToIP services

Figure 26: Proportion of SMEs in France in 2008 with fixed telephony subscriptions based on VoIP/ToIP services, by sector of activity

Figure 27: Proportion of SMEs in France in 2008 with fixed telephony subscriptions based on VoIP/ToIP services, by company size

Figure 28: VoIP use amongst single site and multi-site SMEs in France in 2008

Figure 29: Scope of the VoIP solution used by multi-site SMEs in France, in 2008

Figure 30: Market share of the different VoIP solutions adopted by SMEs in France in 2008

Figure 31: Reasons cited by SMEs in France in 2008 for not adopting VoIP

Figure 32: Main reasons cited by SMEs in France in 2008 for switching to VoIP

Figure 33: Growth of mobile penetration levels in businesses in France, 2006-2013

Figure 34: Market outlook for enterprise mobile services in France, 2006-2013

Figure 35: Revenue generated by the enterprise FMC market in France

Figure 36: Internet connection rate (current + forecast) according to company size

Figure 37: Internet connection rate (current + forecast) according to single or multi-side configuration

Figure 38: Diagram of SME profiles according to ICT awareness/sensitivity