Western Europe unimpressed by fixed-mobile convergence

Services still at the starting gate, according to IDC

Written by Robert Jaques

Mobile operators are finding it "truly difficult" to sign customers to new fixed-mobile convergence (FMC) services in Western Europe, market watchers revealed today.

IDC's recent study of FMC examined the experiences of Western European operators in launching services, and noted that many are struggling to get offerings off the ground.

Advertisement

"Orange has had the most positive start with its Unik service in France, but other operators have struggled," said Jill Finger Gibson, EMEA research director at IDC.

"This shows that FMC technology is moving in the right direction and is not the major hurdle to FMC adoption, at least in the consumer segment.

"That hurdle is getting the customer proposition correct, launching the service only when the necessary prerequisites are in place, and positioning an FMC service as a must-have rather than a nice-to-have."

IDC's report advises operators considering consumer services to avoid positioning FMC as a new standalone product. Instead, it should be positioned as a complement to existing broadband and mobile services.

In particular, IDC stressed that operators planning on launching an FMC service need to ensure that a "significant number" of their existing broadband subscribers are already familiar with and using home networking equipment.

Ultimately, home broadband penetration combined with home network penetration is the necessary prerequisite for the launch of an FMC service, the analyst firm believes.

Based on the technology and service developments over the past year, IDC estimates that the FMC services market in Western Europe will grow at a compound annual growth rate of 173 per cent to reach $2.65bn by 2011.

During the forecast period, the major FMC opportunity will be in the consumer and small/medium business segments rather than the large enterprise segment.

The first deployments of FMC have been with consumers and have shown that people will buy the service if the messaging, pricing and device offers are right.

IDC believes that significant penetration of FMC in the enterprise sector will only occur after 2011, as the technologies needed for enterprise FMC to appeal to business technology decision-makers are still in the development stages, and enterprise adoption of new technologies is a gradual process.

Tags:

Further reading

Related whitepapers

Related jobs

Do you agree?

IT white papers

Search vnunet IThound

Top categories

Job of the week

Search thousands of IT jobs :

Search thousands of IT jobs:

Advanced search

Hiring now on ComputingCareers:

Related IT jobs

Search thousands of IT jobs :

Search thousands of IT jobs:

Advanced search

Advertisement

Newsletter signup

Sign up for our range of FREE newsletters:

Existing User

Newsletter user login:

Enter email address to edit your newsletter preferences

Watch

Shaun Nichols and Iain Thomson

10 Oct 2008

7.33 MBPodcast Special: Views from the Valley More...

Podcast image

09 Oct 2008

12.99 MBComputing podcast - IT implications of the banking crisis, and the FSA clamps down on IT security More...

Shaun Nichols and Iain Thomson

03 Oct 2008

6.49 MBPodcast Special: Views from the Valley More...

Poll

Google Android

Google Android

Are you intending to try out a Google Android mobile phone?

Previous poll results

Spotlight

Microsoft

Microsoft plans Silverlight 2.0 announcement

Web application tool revamp promised later today   More...

Stock prices

Security disclosures tip the stock market

Events such as Microsoft's Patch Tuesday could be used for...  More...

Blogs

Analyst predicts Web 2.0 fire sale

Prices for online apps could soon plummet, says Forrester   More...

MoD building

Latest data breach leads MPs to demand culture change

MoD admits to losing a hard drive containing up to...  More...

Primary Navigation