Fixed-mobile convergence in Asia-Pacific: hope or hype?

Fixed-mobile convergence in Asia-Pacific: hope or hype?

Fixed-mobile convergence (FMC) has been a hot topic in Asia-Pacific for some time. Many of the enablers for FMC are in place, yet there has been surprisingly little progress beyond simple bundling offers. This is because there are still significant demand and supply as well as technology inhibitors to FMC development.

Over the last two years many commercial drivers and technological enablers of FMC have strengthened in the Asia-Pacific region. New handsets for FMC are appearing on the market. Broadband IP networks and 3G mobile networks are widely distributed, at least in certain markets. Incumbent operators continue to lose fixed PSTN revenues to mobile and broadband competitors, and are looking for strategies that would help them to retain and recover voice market share.

In this research, we present a methodology for the characterisation of these markets in terms of these drivers, enablers and inhibitors. We apply it to a representative sample of Asia-Pacific countries, specifically Japan, Korea, China, Hong Kong, Taiwan, the Philippines, Thailand, Malaysia, Singapore, Indonesia, Australia and New Zealand. The picture that emerges is a complex and dynamic one, and suggests that distinctive regulatory and commercial actions are needed in each market to remove inhibitors and realise the benefits of convergence.

Table of contents

Key messages

FMC in Asia-Pacific today

What is FMC?

Varieties of service convergence
FMC as an incumbent strategy

Demand-side factors inhibiting FMC readiness

Supply-side factors inhibiting FMC readiness

Competitive conditions
Infrastructure and technology
Regulation
FMC readiness: country comparison