“Fixed– mobile convergence solutions can provide a wide range of benefits to enterprises – but which are relevant to the customer?”
There is much debate as to whether fixed–mobile convergence (FMC) solutions will pervade the communications market in the future. These solutions currently encompass a range of technologies with varying degrees of convergence, from the least converged such as integrated mobile–fixed tariffs to fully converged, true FMC solutions of WiFi dual-mode and picocells. True FMC solutions may incorporate fixed networks to transport calls, which reduces the use of public mobile networks; these have seen modest success (for example Unik from Orange in France) as well as failure (such as T-One from Deutsche Telekom in Germany). Selling FMC solutions is not straightforward, as the benefits are more wide-ranging than just call cost savings; this is especially true when selling to enterprises.
FMC services can control and reduce costs, provide access to new products and services, enhance productivity, and transform processes. When selling the service, operators and vendors must also take into consideration coverage, legislative/corporate social responsibility obligations (for example reducing carbon footprint) and non-call-related cost savings (for example reduced requirement for fixed telephones).
Given the range of potential benefits, which should be taken into consideration when selling an FMC service?
Quantifying benefits as part of an ROI model is not straightforward and enterprises want to see real-life examples of the benefits of FMC. Research by Analysys Mason shows that call cost savings can only be used as an initial way of attracting interest from enterprises. More important is to explore employee behaviours including:
- mobility in the office
- amount of time out of the office
- number of off-net and on-net calls
- overall telephone usage.
An enterprise with a high percentage of employees who have a high degree of internal mobility or a significant proportion of off-net calls are most suited to a savings-based sales approach. The least appropriate enterprises are those with employees that spend a large proportion of their time out of the office and use few minutes. Of the many different behaviours, only a small percentage will be ideally suited to cost-only benefits. Analysys Mason conducted interviews with enterprises that have deployed a variety of FMC solutions (both single-mode, such as premises-based CPE, and dual-mode such as WiFi/GSM). Figure 1 shows the results from a manufacturer. The manufacturer deployed a ‘one number, one handset’ GSM-based service using a private network for on-site coverage and public GSM for off-site. It was made available to all employees and on average resulted in a time saving of 15 minutes per employee per day by minimising missed calls (‘telephone tag’); this 15 minutes could be spent designing, making and selling products.
Figure 1: Comparison of pre- and post-FMC deployments by a manufacturer [Source: Analysys Mason]
Analysys Mason provides a unique combination of business skills and detailed sector knowledge to deliver practical results for organisations worldwide. Our research and online market intelligence services provide authoritative coverage of the global networked economy and this insight has ensured our clients resolve a range of operational and strategic issues. We have compiled an FMC strategy for developing countries for a major African operator; provided regulatory FMC benchmarking; and supplied an analysis of FMC competitors for an UK incumbent.
For more information please contact Gareth Williams, Lead Consultant, Analysys Mason at gareth.williams@analysysmason.com