Service Offerings for Fixed-Mobile Convergence Scenario

Abstract

This study demonstrates that an integrated operator can benefit from cost savings, customer retention and prevention of revenue erosion by FMC migration strategy with introduction of advanced service packages. This development is driven by increasing importance of mobile network capabilities and services, as well as the lessening gap between fixed and mobile systems, in terms of technological models and prices, resulting in greater market-pull and commercially feasible FMC offerings. FMC is expected to offer benefits for network and service operators as well as businesses and consumers. We have also analyzed the operator’s dilemma in selecting an appropriate migration strategy to exploit the benefits of cost savings and generating new revenues, while exposing oneself to the risk of substitution effects among its fixed and mobile products. The objective in this article has been to provide quantitative comparison of some strategic scenarios utilizing techno-economic case study methodology in modeling an integrated operator business in the Western European context.