Sitting at the Nexus: Fixed Mobile Convergence

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Fixed (to) Mobile Convergence (FMC) solution is a hot strategic item in today's telecommunications industry. Fixed Mobile Convergence refers to providing uninterrupted, continuous service while users switch between mobile and fixed line infrastructure access. The ability to offers converged fixed/mobile services is the key to conquering the increasing proliferation of 802.11 enabled mobile devices, hunger for high-bandwidth applications, ever-continuous demand of consumers for fair and efficient pricing, availability of communication services over plain old IP, etc. Basically, it's about enabling service delivery irrespective of location, access capability, and end device.

From a business perspective for the service provider, it's about keeping control of a customer's entire communication experience. The longer the service provider maintains control over that experience, the more revenue opportunity. While this may sound a bit alarming for the customer at first, the customer also stands to gain in terms of convenience through seamless service and more flexible pricing (typically, based on the economics of the access technology). Here are some observations along those lines:

  • Emergence of 802.11 enabled devices: 802.11 is really only the tip of the iceberg, since WiMax and other larger area wireless technologies are on their way. This puts pressure on mobile operators and traditional fixed line providers, who now could be bypassed through pure data channels.
  • Different pricing models for different access technologies: Minutes of airtime pricing versus fixed monthly cost for Internet access. The internet pricing scheme has been a boon to Internet-based VoIP competitors like Skype for free regional calling and cheap long distance. People expect different pricing schemes for fixed line services versus paying extra for the convenience of mobility. Long distance costs in the US are a good example of this: mobile phone long distance rates are typically higher than their landline equivalents.
  • Maximizing communication: This whole convergence thing is about opening up communication possibilities and we have more ways than ever to communicate. If I'm sitting at work, I want to get my call on my work phone, not on my cell phone where I might have bad reception in my building or burn unnecessary minutes. Maybe I have no cellular reception but only Internet connectivity. People call other people, not a place or particular number. Each of these different communication points represents a possibility for substitution of my provider, switching to my most convenience communication mechanism.
  • Integration with collaborative software: Collaborative software plays an important part of business productivity and at its heart is enabling effective communication. More and more the lines between collaborative software and telecommunications are blurring. To that end, seamless communication ability regardless of access technology or location is key -particularly for mobile workers. For example, the ability to seamlessly transfer between desktop web conferencing to a mobile device and back-again.

Each of these points is a potential point for substitution of service. Based on pricing, location, terminal capabilities, a customer may decide to switch from the current service provider -and customers are finding themselves more than ever presented with choice. As such, Fixed Mobile Convergence ends up being a key unification of all the recent disruptions to the telecommunications industry and thus, sits at the nexus.