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Fixed Mobile Convergence worth $28 billion by 2011

Fixed Mobile Convergence is set to turn into a $28 billion business composed of 3% of all telephony subscribers by 2011, according to a new study by Informa Telecoms and Media. Fixed Mobile Convergence, or FMC, chooses between available networks (cellular and landline) and picks the least expensive option. It means that consumers need just one handset and receive only one bill. The drawback at this point for many consumers is that the handsets are currently quite expensive in comparison. Informa predicts that the handsets will make up 5% of the market, or 47 million, by 2011.

The growth in the sector will likely be more of a result of a push by operators than a strong demand by consumers. Landline operators look at it as a way to fight the growing marketing efforts of mobile operators who are suggesting that people give up landlines entirely and just rely on mobile phones.

About T.O. Whenham

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