No Longer Just Talk: FMC Is Happening

UMA (Unlicensed Mobile Access, a carrier-based implementation of Fixed-Mobile Convergence) is no longer a technology looking for an application; unlike a number of new technologies, UMA applications are already being commercialized on a relatively mass scale. A few sample deployments:

France: France is arguably the world’s most competitive fixed mobile convergence market. Spurred by acute competitive pressures, Orange and Neuf Cegetel have started pushing UMA- and SIP-based offerings in a marketplace that has consistently been at the forefront of new convergent technologies. For Orange, UMA is one of the first steps in its vision to generate 5–10 percent of revenue from converged services by 2008.

Sweden: TeliaSonera has announced the launch an FMC service enabled by UMA technology in November 2006. Called “Home Free,” the service promotes the concept of fixed-line termination, with the promise of a 20 percent savings on phone bills.

While this is not in the realm of savings that some fixed VoIP services have been able to provide, the single handset concept may be compelling enough for subscribers wishing to combine the benefits of fixed and mobile services. TeliaSonera also hinted at the availability of low-cost calling via participating public WiFi hotspots, although no specifics have been provided at this time.

USA: T-Mobile USA is the most likely candidate to UMA in the US market. For one, it has pushed bundled plans, free voice, and unlimited calling more than any other player in the market. It does not have 3G spectrum; even if it acquires some WCDMA spectrum (which appears likely), the network will take some time to build. UMA would help with those issues, and would provide a means of connecting its cellular and hotspot businesses while providing a unique a differentiated offering which only Cingular would be in a position to potentially match. T-Mobile has been testing UMA with Samsung’s T709 handset, and may launch by early Q107.

Source: Pyramid Research

12:24:54 AM