Fixed networks take a backseat

The future of FMC is questioned as a survey from Analysys reveals increased spending on mobile technology

Opinion remains divided over the future of fixed mobile convergence (FMC), as a survey reveals the volume of mobile calls will overtake those on fixed networks this year.

The survey, conducted by research and consultancy firm Analysys, estimates that the total number of call minutes made from mobile networks will surpass the total made from fixed networks in the UK during the second quarter of 2007.

Rupert Wood, principal analyst for Analysys, said: “The cost of fixed network calls is coming down fast. People have a fairly stable budget for voice, so this has increased the amount people spend on mobile.”

Wood indicated he expected the percentage of calls made on fixed networks to drop to 30 per cent by 2012. He said: “There is an issue of whether or not people actually want a phone for both purposes. FMC will probably remain a niche product.”

Voice over IP (VoIP) provider Inclarity launches a range of dual-mode handsets this month. Operations director Dave Millett said: “With FMC, there is an opportunity for resellers to offer customers something new that provides a great return on investment.

“The move to FMC has not been prompted by mobile operators. It is similar to broadband was 10 years ago, when Freeserve came out with a whole new model. Big vendors will have to start selling FMC.”