Strategy Analytics: Cable & Broadband Dominate US Fixed-Mobile Convergence Outlook
Posted on: Monday, 27 June 2005, 15:00 CDT
According to the latest Strategy Analytics report, "Cellular Beats Convergence in In-Building Voice Battleground," the US will lead adoption of fixed mobile convergence (FMC), as the rest of the world sees FMC play second fiddle to cellular-only substitution. Seven percent of voice telephony users will use a FMC product in the US by 2010, compared with only two percent outside the US.
"North America will buck the global trend, where cellular based solutions rather than converged fixed-mobile voice services will dominate. Advanced penetration of WiFi networks, a robust cellphone 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 US," comments David Kerr, Vice President, Strategy Analytics' Global Wireless Practice. "Players like Time Warner, Comcast and Cox have most to gain in terms of revenue opportunities, with early FMC moves by BellSouth a clear indication that they need to protect their entrenched 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," adds Phil Kendall, Director of the 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 cellphone. 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."
About Strategy Analytics
Strategy Analytics, Inc. - a global research and consulting firm - provides timely insights and strategic business solutions to companies operating at the convergence of information, communications and entertainment technologies. With worldwide headquarters in Boston, MA. and principal offices in England, France and Germany, Strategy Analytics focuses on market opportunities and challenges in the areas of Automotive Electronics & Multimedia, Digital Consumer, Wireless Strategies and Enabling Technologies. For more information, see www.strategyanalytics.com
Source: Business Wire
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