A new report suggests that fixed/mobile convergence is going to be a slow process, with only seven per cent of UK customers expected to use the technology by 2010.

The report, by management consultants Analysys, said that a lack of handsets and low consumer interest will lead to growth rates significantly lower than predicted. 

By 2010 only 20 million households across Europe will be using fixed/mobile telephony.

BT recently launched its own fixed/mobile service, called BT Fusion, and is predicting strong growth. Other companies are very interested in pushing the service since it brings data services from the mobile market to home users. 

"Many operators are placing strategic bets on fixed/mobile convergence to satisfy an expected demand from customers for personalised communications services accessed by the best available network," said Stephen Sale, author of the Analysys report.

"Ownership of both fixed and mobile access networks will allow integrated operators to extract more value from the applications they deliver."

Despite strong early adoption in the UK and Germany, France is expected to be the biggest user of such services, with 10 per cent of households forecast to be using the service by 2010.

Annual handset sales in Europe are expected to reach 12.5 million in 2010.