Fixed-Mobile Convergence Revenues Will Account for 6% of Traditional Communications Spend in 2009 Says Pyramid Research

CAMBRIDGE, Mass.--(BUSINESS WIRE)--June 1, 2005--Fixed-mobile convergence (FMC) revenues will reach $80bn in 2009, or 6% of total communications spend worldwide, according to a new Pyramid Research report. The report, "Fixed-Mobile Convergence: Creating Value with Successful Business Models," credits converged service revenue growth to value-added services and the migration of digital content from broadcasting networks to new converged networks. Pyramid Research expects converged services adoption to accelerate only after 2007, as more consumers are migrated to convergent platforms.

"Key drivers of FMC include fixed-mobile substitution, industry consolidation, and strong uptake of VoIP services" said Pyramid Research Analyst and report author Svetlana Issaeva. End-users in the traditional fixed and Internet access segments will continue to spend less, as competition puts downward pressure on prices and subscribers trickle away to mobile networks. Fixed providers are most keenly aware of these trends as fixed-mobile substitution slowly gains ground. For them, a prompt launch of FMC networks promises to cut CAPEX and OPEX, and offers an arsenal of new value-added services that will improve loyalty and increase revenues.

“Fixed-Mobile Convergence: Creating Value with Successful Business Models”

For mobile operators, launching 3G services takes priority over FMC. "Mobile voice services are already commoditized and the migration to new IP-based convergent networks and platforms is only a matter of time; fixed-mobile converged services are not indispensable to fixed-mobile substitution, but would certainly accelerate it" commented Issaeva. Launches of mobile IP voice and converged services, however, will take place only over a medium term timeframe, as mobile operators are banking on fixed-mobile substitution to differentiate their offers and lower churn rates.

About "Fixed-Mobile Convergence: Creating Value with Successful Business Models"

To increase market share and gain a piece of the rapidly maturing FMC market, vendors and service providers must understand the market motivators and service opportunities. The report includes converged service revenue forecasts, assessment of FMC impact on revenues and subscribers, and how/when operators should enter the market. To view report details or purchase, visit http://www.pyramidresearch.com/store/rp_FIXMOBCONVER.htm?SC=Fpr.

About Pyramid Research

Pyramid Research is the growth strategy expert for the global communications, media and technology industries. Founded in 1986, Pyramid provides research and consulting services in over 100 countries - helping clients to go beyond existing boundaries by tracking and exploiting business opportunities worldwide. For more information, visit www.pyramidresearch.com.