Fixed-to-mobile substitution in Asia-Pacific

Fixed-to-mobile substitution in Asia-Pacific

Many fixed line operators worldwide are suffering from fixed-to-mobile substitution (FMS). This report investigates the state of affairs of FMS in Asia-Pacific’s developed and developing markets. It also examines current and potential FMS strategies in the market and gives an outlook of the future for FMS.

Both access and call substitution are occurring in different levels in all markets. However, there is little evidence of access substitution trends in developed markets. Only a small percentage of users are ‘cutting the cord’, and it is mostly in Korea, Hong Kong and Singapore. However, users that have never had any means of communication are choosing not to connect to a fixed line and are going ‘straight to mobile’, which is a trend particularly strong in developing markets. The trend of call FMS is accelerating, and an increasing percentage of traffic is originated on mobile networks.

Table of contents

Key messages

Operator strategies
Drivers and barriers for FMS

FMS drivers in Asia-Pacific
FMS barriers in Asia-Pacific
FMS: the state of play

Access substitution
Call substitution
FMS promotion strategies: mobile operators

FMS defence strategies: fixed line operators

Strategic initiatives
Marketing tactics
The future of FMS in Asia-Pacific

Mobile operators
Fixed operators
Users
Case studies – developed markets

Australia
Hong Kong
Japan
New Zealand
Singapore
Taiwan
Korea
Case studies – developing markets

China
Indonesia
India
Malaysia
Philippines