Cellular-Only Markets Will Slow Adoption Of Fixed-Mobile Convergence




New Study From Strategy Analytics Predicts 500 Million Cellular-only Users v 90 Million Convergence Users by 2010

Boston, MA -/June 30, 2005 - Wi-Fi Technology News/- According to Strategy Analytics' latest report, "Cellular Beats Convergence in In-Building Voice Battleground," the strong evolution of cellular-only markets will dramatically slow the global adoption of fixed-mobile convergence (FMC). By 2010 there will be 500 million cellular-only users generating three times the voice revenues of their FMC counterparts.

With major carriers such as BT, Korea Telecom and BellSouth deploying FMC services, convergence is back on the agenda and the specter of Wi-Fi or Bluetooth destabilizing in-building cellular revenue flows again looms large. However, handset prices and availability will represent the biggest barrier to FMC adoption.

"The 'voice goes mobile' mantra of the cellular industry is now a reality rather than a mission statement." comments David Kerr, Vice President, Strategy Analytics' Global Wireless Practice. "Cellular already accounts for 60 percent of the world's access lines, one third of all voice minutes and one half of all voice revenues, with 10 percent of homes relying on only a mobile phone for voice. FMC providers will have to work hard to turn this tide as players like Vodafone and O2 fine tune their wireless-only solutions."

"The challenge is that this will not be a market driven by pent up consumer demand," adds Phil Kendall, Director, Strategy Analytics' Wireless Network Strategies service. "Users may be looking for a single handset which works at home, in the office and on the move - but that handset already exists in the mobile phone. FMC offers more to wireline, cable or broadband providers looking to cost-effectively target the in-building mobile opportunity, or to small wireless operators looking for market share gains, than it does to the end-user."

About Strategy Analytics
Strategy Analytics, Inc. - a global research and consulting firm - provides timely insights and strategic business solutions to companies operating at the convergence of information, communications and entertainment technologies. With worldwide headquarters in Boston, MA. and principal offices in England, France and Germany, Strategy Analytics focuses on market opportunities and challenges in the areas of Automotive Electronics & Multimedia, Digital Consumer, Wireless Strategies and Enabling Technologies. For more information, see http://www.strategyanalytics.com