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Report says fixed carriers could retake traffic from wireless

WHEATON, Md.-In-building coverage and bundled offerings have given fixed network and cable operators grounds to battle wireless carriers for subscribers, according to a new study from The Shosteck Group, titled “Wired and Wireless Networks; Two Worlds Coming Together.”

The availability and affordability of Wi-Fi, other broadband wireless solutions and Voice over IP have made it possible for fixed network and cable operators to “start to grab traffic back from mobile operators-especially ‘inside and around the building,’ ” explained Jane Zweig, chief executive officer of Shosteck.

Additionally, “Cable and DSL operators offering a ‘triple play’ of services-voice, video and data over their broadband networks-are now posing a new set of competitive issues for mobile operators,” said John Darnbrough, senior associate at Shosteck. “The addition of a wireless element to wired operators’ arsenals will enable them to capture a larger portion of their residential and enterprise customers’ telecoms spend.”

Zweig said the study analyzes the implications of convergence during the next five to six years, taken together with the quality, cost and popularity of new technologies and consumer behavior regarding them. “Convergence has the potential to create new value chains, disrupt old ones, define new business models and disrupt old ones. It will also create new market structures, new business entities, new competitors and new opportunities,” said Zweig. “To succeed, companies must step out of their legacy heritage and embrace these changes.”

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