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Fixed-mobile convergence revenues to climb

CAMBRIDGE, Mass.-Fixed-mobile convergence revenues are expected to reach $80 billion in 2009, according to a report from Pyramid Research.

That figure equals 6 percent of the total projected communications spending worldwide, said the report, “Fixed-Mobile Convergence: Creating Value with Successful Business Models.” The report cites value-added services and the migration of digital content from broadcasting networks to new converged networks as drivers of converged service revenue growth.

Pyramid said converged services adoption will accelerate after 2007. “Key drivers of FMC include fixed-mobile substitution, industry consolidation, and strong uptake of VoIP services,” said Pyramid Research analyst and report author Svetlana Issaeva.

Traditional fixed and Internet access segments will see increased price pressure and competition from mobile networks, said the report. Fixed operators could see CAPEX and OPEX benefits from quick launches of FMC networks. Meanwhile, mobile operators will find launching third-generation networks takes precedence over FMC, said the report.

“Mobile voice services are already commoditized and the migration to new IP-based convergent networks and platforms is only a matter of time; fixed-mobile converged services are not indispensable to fixed-mobile substitution, but would certainly accelerate it,” said Issaeva.

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