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3 slams fixed-mobile convergence
FMC you later?

By Jo Best

Published: Tuesday 04 July 2006

Third-generation mobile operator 3 has slammed the idea of fixed-mobile convergence (FMC), labelling the technology a niche product.

Speaking today at the Mobility Summit in London, 3 strategy director Bruno Duarte expressed his doubts that consumers are really crying out for a single mobile and landline device.

He said: "From a UK mobile perspective we are much more sceptical about what is called fixed-mobile convergence. Beyond bundling and cost saving, we don't see much happening."

Both BT and Cable & Wireless have already committed to offering a combined fixed-mobile service. O2 also piloted an FMC service some years ago but decided to ditch plans for a commercial rollout due to a lack of enthusiasm from customers.

Duarte added: "Whether we need the complexity of FMC, we're not sure... Yes, some people will want it but we believe it's going to be fairly limited."

Fellow operator Orange also expressed concerns about FMC. Michael Eagleton, mobility consultant EMEA, at Orange said: "It's very simple to do. The technology is there but once you take it out into the market, economics kicks in." Orange is aiming to launch its own FMC service in the UK soon.

Mobile players are also conscious the technology must meet the iPod generation's expectations - for example, handover between VoIP over wi-fi and cellular networks must not be a problem, Eagleton added: "The bigger issue is making it seamless - not on campuses or in the office but on a wider basis."

Roy Bedlow, EMEA VP at Palm, agreed, adding: "We have to enable or produce a whole infrastructure of handover, a whole user experience, whether it's voice or data, that's seamless."

Analysts, however, are more confident FMC could take off. Informa Telecoms & Media, for example, recently predicted the market will be worth $28bn by 2011.

Mobile operators have traditionally been shy about looking at FMC, fearing it may cannibalise their revenues from normal cellular calls. Demand from customers was also apparent at the Mobility Summit, however.

Honda F1 Racing currently uses Nokia smart phones equipped with technology from Avaya to make sure all staff are contactable on a single device, whether they're called at their desk phone or mobile. David France, the team's IT director, wants to go further. "We're talking to Nokia about introducing dual-mode [FMC devices]. We're not there yet," he said.

The Mobility Summit is organised by the European Technology Forum, a sister organisation of silicon.com.