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.
"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.
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