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Monday, May 31, 2010

Why FMC is called Fixed Mobile Convergence and not Wireline Wireless Convergence? Is it convergence or substitition?

Fixed Mobile Convergence (FMC) has been talk of the town in most telecom operators. Each operator has its strategy for FMC.
Why its called Fixed , Mobile convergence and not Wireline, Wireless convergence?
Lets understand the terms carefully:
1. Fixed : This means ones inability to move around and use services. Being nomadic at one place . Maintain its physical location relatively constant.
2. Mobile : This means ones ability to move around and use services. Move from one geographical area to another.
3. Wireline: This means type of communication requiring propagation of signals over solid media like copper , fiber.
4. Wireless: This refers to type of communication that is conducted untethered media such as air for cellular or vaccum in space for satellite.
A Fixed communication service is also provided over wireless media for example point to point microwave, fixed flavor of WIMAX, even WiFi at airports, hotel rooms can be considered Fixed although media is wireless.

It is clear that Fixed and Mobile are service attributes whereas wireline and wireless are technology attributes. Both wireline and wireless technology can be used to deliver fixed or mobile services.

Is it convergence or substitution?
Convegence means use of same services seamlessly over fixed and mobile. Which means a user making video conferencing call over cellular network when coming from office to home switches to WiFi or DSL seamlessly maintaining same state.
But who needs fixed services if all can be delivered over mobile. So is substitution is the right word as bulk of communicaton is shifting form one communication method to another. Mobile connections has been growing at high rate whereas fixed connections are either substituted.This trend is mainly applicable to voice communication.
While mobile data is is on rise with 3G, WIMAX , LTE but is nowwhere close to fixed broadband DSL and Cable.
The decision to use Fixed or Mobile is tradeoff between cost, functionality and convenience.

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