Mobiles steal more voice minutes

The latest study into how many calls are moving from fixed lines to mobiles - so-called fixed-mobile substitution - shows fixed-line voice-call minutes fell five per cent in Europe in 2003.

The number of fixed lines also decreased, by 500,000 physical connections, as individuals see advantages in using mobiles, according to Frost and Sullivan.

Consumers are more inclined to use their mobiles, says the analyst house, benefiting from price competition among operators, capacity improvements that 3G networks bring and location-based charging by some operators. Calls can be offered for free or at a lower rate when a user is at or near their home, for example.

However, business users still have their concerns about coverage, sound quality and getting the functionality that office-based PBX systems linking switchboards to extensions generally allow. A major push now by telecoms vendors is transferring PBX features to workforce mobiles.

Jan ten Sythoff, author of the F&S report Fixed-Mobile Substitution, says the takeoff of 3G is likely to benefit the whole telecoms market as mobile operators gain new revenue streams and concentrate less on taking fixed-line voice minutes.