Fixed-mobile convergence: this time they mean it! The buzz on fixed-mobile convergence has waxed and waned over the years. Now it's back and unlike before, it's not chiefly about intelligent cores—it's as much about broadband access and convergence at the terminal. Warning: feelings of deja vu may occur

Telecom Asia, May, 2004 by John C. Tanner

A brief history of fixed-mobile convergence

WHY FMC?                  WHY NOW?                   WHY NOT THEN?

Capex savings on          MPLS in the core           Technological
infrastructure                                       maturity issues

Opex savings and          IMS for mobile networks    Capex cutbacks due
efficiencies              with SIP support           to telecoms
                                                     meltdown

More revenue              Open standards             Lack of open
opportunities from                                   standards
moving up the value
chain

New service innovation    Dual-mode terminals        Sidelined by 3G
                                                     hype

Customer stickiness       Customers primed for       Regulatory
                          fixed-mobile bundling      restraints

WHY FMC?                  WHY NOT YET?

Capex savings on          Technological
infrastructure            maturity issues

Opex savings and          Tech issues like backwards
efficiencies              compatibility and interoperability

More revenue              Service issues like
opportunities from        cannibalization and CR ownership
moving up the value
chain

New service innovation    Total convergence is a
                          time-consuming project

Customer stickiness       Regulatory restraints