Saturday, January 07, 2006

Fixed-mobile convergence

One of the biggest drivers of fixed-mobile convergence is without doubt the enormous growth in wireless services. The dream of using one telephone with one number whether at home, at work or on the street is approaching reality and "Fixed-mobile convergence" is the buzzphrase for this telephonic utopia!
Pressured by VoIP operators such as Skype/eBay and Vonage, and anxious to reduce costs by bringing fixed and mobile businesses together, mobile operators, mobile virtual operators and integrated network operators are increasingly drawn to FMC. It seems to be more than just hype. With the ever-increasing availability of new wireless network technologies, traditional carriers from both the fixed and mobile worlds are being forced to re-evaluate their strategies, not least to defend themselves against the possible entry of new players.
The emerging trend of several users replacing their fixed lines, offers opportunities for carriers to develop an integrated device and eliminate the need for multiple address books, passwords and message portals. To avail of the opportunities that FMC offers, carriers will do well to offer complete service bundles, which will enable cross-selling, by which additional services can be sold to existing customers to avoid the high costs of customer acquisition.
Moreover, carriers can significantly reduce capital expenditure and operational expenditure by integrating core networks and sharing back-end functions such as customer service, network operations and maintenance, customer relationship management and other administrative functions.