BOSTON-The United States is expected to lead the world in the adoption of fixed-mobile convergence through the end of the decade, according to a report from Strategy Analytics. The report, “Cellular Beats Convergence in In-Building Voice Battleground,” predicts that 7 percent of voice telephony users will use an FMC product in the United States by 2010, compared with only 2 percent outside the U.S.
“North America will buck the global trend, where cellular based solutions rather than converged fixed-mobile voice services will dominate,” said David Kerr, vice president of Strategy Analytics’ Global Wireless Practice. “Advanced penetration of Wi-Fi networks, a robust cell-phone replacement market, spotty in-building cellular coverage and a dynamic broadband and cable industry will combine to keep cellular-only users at bay in the U.S.”
Kerr noted that cable television providers have the most to gain in terms of revenue gains from such convergence, and early moves by entrenched telecom providers show a need to protect their current positions in the fixed and mobile voice markets.
“This will not be a market driven by pent-up consumer demand. It will be molded by friction between wireless and wireline operators, between cable MSOs, broadband providers and triple-play telcos,” added Phil Kendall, director of Strategy Analytics’ Wireless Network Strategies service. “Users may be looking for a single handset which works at home, in the office and on the move-but that handset already exists in the cell phone. FMC is more about giving wireline, cable and broadband providers the tools to address the in-building mobile opportunity through the use of their existing assets.”
