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FMC Strategies to Combat Substitution

For years Mobile Network Operators ('MNOs') have developed strategies to encourage users to migrate their phone usage from the fixed network to the mobile network via Fixed Mobile Substitution (FMS). However, developments in the capabilities of phones and the widespread consumer deployment of broadband networks (such as ADSL) have given fixed network operators an opportunity to win back lost traffic.

MNOs have been very successful in positioning their offerings as a direct alternative to the fixed network. Evidence for this comes from the growth in mobile-only households across Europe and the increased share of total minutes accounted for by mobiles. Today however, fixed network operators are exploiting a wide variety of convergence opportunities to stem their loss of revenues. This presents MNOs with a new challenge. They must develop strategies to counter the triple and quadruple play convergence offers being deployed by Fixed Network Operators. Even MNOs connected to a fixed network incumbent need to develop a market positioning to deal with this growing threat.

There are a number of trials and live FMC applications that provide lessons about how customers will react to various propositions, such as whether they will be attracted to new functionality or are only interested in cost savings. The results of these trials and live deployments will help to answer the question whether FMC is a long term issue that must be dealt with or whether it is a temporary phenomenon that will only last until the MNOs' mobile-only offerings are fit to substitute all the fixed line traffic.

This report examines the organisations with an interest in convergence and explores the initiatives that have already been exposed to the market, in order to assist MNOs in understanding possible best practice in this area and providing input into their own FMC strategy development.

Price: EUR 2,500.00 / GBP 2,000.00

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Table of Contents

1
Overview
1
2
Introduction
2
2.1
Background
2
2.2
Report Structure
2
3
Convergence in Context
3
3.1
FMC Background
3
3.1.1
What is FMC?
3
3.1.2
FMC History
4
3.2
Technologies, Protocols and Standards
5
3.2.1
SIP (Session Initiation Protocol)
6
3.2.2
UMA (Unlicensed Mobile Access)
7
3.2.3
IMS (IP Media Subsystem)
8
3.2.4
Port-Based Network Access Control
8
3.3
The FMC Market Opportunity
9
4
Key FMC Players
11
4.1
Introduction
11
4.2
Regulators
11
4.3
Standards and Industry Bodies
12
4.3.1
Key Industry Bodies and Associations
12
4.3.2
Standards Bodies
14
4.4
Equipment Manufacturers
16
5
Network Operators
18
5.1
Introduction
18
5.2
Telstra Triple Play
19
5.2.1
Description of Application and FMC Approach
19
5.2.2
Market and Best Practice Insights
22
5.2.3
Customer Reactions to Proposition
22
5.3
Wind
22
5.3.1
Description of Application and FMC Approach
22
5.3.2
Market and Best Practice Insights
24
5.4
TeleDanmark (TDC)
24
5.4.1
Description of Application and FMC Approach
24
5.4.2
Market and Best Practice Insights
25
5.4.3
Customer Reactions to Proposition
25
5.5
Swisscom Mobile Unlimited
25
5.5.1
Description of Application and FMC Approach
25
5.5.2
Market and Best Practice Insights
26
5.5.3
Customer Reactions to Proposition
27
5.6
BT Fusion
27
5.6.1
Description of Application and FMC Approach
27
5.6.2
Market and Best Practice Insights
30
5.6.3
Customer Reactions to Proposition
31
6
Conclusions
32
7
Recommendations
35