Consumer Move to Mobility Will Transform Telecom

Telecommunication is undergoing an historic seapoint, however, it offers a good overview of the FMS
change. Even though that change is driven by theand FMC.
consumer side of the industry, it is so basic andThe report starts by showing how the phenomenon is
fundamental that its impact will transform the businessgrowing: by 2010, it says, almost 80 percent of adults
segment as well.around the world will own a mobile device. The mobile
The change - that people are giving up their landlines -network usage increase that will accompany the
is starkly illustrated in two studies featured in a recentproliferation of devices will cut drastically into
Wi-Fi Planet piece. The first is a Yankee Group reportlower-cost wireline connectivity. The writer then says
that says about 40 percent of mobile calling is madethat 40 percent to 80 percent of wireless usage
from home. The complementary and perhaps evenoccurs when the person is in the home or workplace.
more stunning finding in a report from Harris InteractiveThis is inefficient, since cellular networking is
is that only 58 percent of adults in the U.S. subscribe tocomparatively expensive. Siemens sees FMC as a
wireline services, while 74 percent have wirelessway to cut costs as FMS grows.
phones.This transition is further along outside the United States.
This transition - called by some fixed-mobile substitutionLate last month, Seeker Wireless said that its
(FMS) - may not seem like a big deal to anyone underSeekerZone technology is being used for virtual
30 or so, but it is striking to those who grew up in thefixed-line service provisioning in Eastern Europe.
wireline age. The transition from wired to wirelessSeekerZone, the story says, encourages FMS by
clearly means that a lot of money will be redistributedoffering special pricing plans based on the user's
during the next decade, and that there will be a newlocation. The release says that the approach is
set of winners and losers. The story points to some ofefficient because it is based on subscriber identity
the early moves in the game, such as T-Mobile'smodule (SIM) cards instead of Cell-ID technologies. This,
HotSpot @Home and Sprint Nextel's Airave.the company maintains, enables 99.5 percent in-zone
Mobilised reports on a study from Insight Researchreliability.
that verifies demand for fixed to mobile convergenceFixed mobile convergence is a broad area, and this
(FMC) is on the consumer side, while enterprisesposting at the Alan Quayle WebLog is helpful in setting
remain reticent. During the next five years, Insighta landscape. There are three forms of FMC, he says.
predicts, FMC will generate $35 billion worldwide. TheThe first is a "handset-centric" approach that mainly
piece quotes Insight president Robert Rosenberg asrelies upon the cellular network. Other approaches -
saying that the U.S. is trailing Europe and Asia in FMCWi-Fi, Digital Enhanced Cordless Telecommunications
development. The study also states the obvious: As(DECT) or Bluetooth - handle the most challenging
consumers move more fully to wireless, revenues forin-premise connectivity. The second approach uses
fixed long distance and local providers will decline. Thisvirtual private networks (VPNs) to exert control, the
will put a lot of money in play, and the savviest playerspost says. Desktop phones and mobile devices also
will thrive.are used. The third, the substitution approach,
This piece from Siemens Enterprise Communicationsexchanges big chunks of the wireline network with
posted at The Lippis Report site ends with a producttheir wireless equivalents.
pitch for HiPath MobileConnect. Before it reaches that