Strategic Scenarios for Fixed-Mobile Convergence: An Integrated Operator Case

Strategic Scenarios for Fixed-Mobile Convergence: An Integrated Operator Case

Jarmo Harno (Aalto University School of Science and Technology, Finland), K.R.Renjish Kumar (Aalto University School of Science and Technology, Finland), Mikko V.J. Heikkinen (Aalto University School of Science and Technology, Finland), Mario Kind (Deutsche Telekom, Germany), Thomas Monath (Deutsche Telekom, Germany) and Dirk von Hugo (Deutsche Telekom, Germany)
DOI: 10.4018/978-1-60960-589-6.ch010
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Abstract

This study demonstrates that an integrated operator can benefit from cost savings, customer retention and prevention of revenue erosion by having a fixed-mobile convergence (FMC) migration strategy including introduction of advanced service packages. This development is driven by increasing importance of mobile network capabilities and services, as well as the decreasing gap between fixed and mobile systems, in terms of technological models and prices, making FMC both requested by the market and commercially feasible to provide. FMC is expected to offer benefits for network and service operators as well as businesses and consumers. The authors have analyzed the operator’s dilemma on proper migration strategy in exploiting the benefits of cost savings and generating new revenues, but exposing oneself to the risk of substitution effects among its fixed and mobile products. They provide quantitative comparison of some strategic scenarios utilizing techno-economic case study methodology in modeling an integrated operator business in a Western European context.
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Players In The Fmc Service Game

The highly complex FMC environment comprises the following players, who all are eager to gain a share of the value generated by FMC:

  • Access and core network operators

  • Transport network operators

  • Service delivery platform developers

  • Content providers that may produce content applicable for FMC devices

  • Service operators offering value-added services to the end-users

  • Software manufacturers providing client software for efficient switching between multiple radio technologies, terminal operating systems, and desktop software vendors

  • Handset manufacturers producing multi-radio handsets or smart cards

  • Network vendors

  • National regulatory and competition authorities

Some of the key drivers for FMC are described below:

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