Telcos to invest more in converged networks

15 Nov 2006

According to a study from ABI Research, fixed and mobile network operators will invest more than $450 million in capital infrastructure over the next five years to provide fixed-mobile convergence (FMC).

ABI Research forecasts that worldwide, operators will generate $97 billion in service revenue from FMC applications in 2011, mainly from offering lower fixed-line call charges to mobile users.

'Operators are seeing their core voice revenues come under pressure from VoIP, and they need to minimize call substitution,' research analyst Ian Cox said. 'One way is to provide services over the broadband fixed network using a mobile device. Both dual use and single use devices will be able to do that over Wi-Fi and micro cellular access points in the home and office.'

Cox further comments that 'UMA and SIP with VCC are competing in this market with other approaches, including picocell and femtocell access points, which will lead to a dynamic and competitive market developing over the next five years.'

'Convenience and lower call charges are an attractive combination,' Cox notes, 'but call charges need to be simple to understand, and dual-use devices need to be as appealing as single-use devices in terms of battery life, price and choice of models.' For vendors, FMC will allow continued development of SIP solutions.

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