Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.
Tendencies: mobile slowly replacing fixed-line in the UK
Posted on 24-Aug-2004 23:13. | Tags Filed under: News.


Tendencies: mobile slowly replacing fixed-line in the UK
The volume of fixed-line voice traffic has been decreasing for the past couple of years as usage of mobile minutes continues to gather pace. The cost savings gained from discarding fixed lines, combined with declining mobile price premiums, are driving further fixed-mobile substitution in the voice market. The information is part of the findings published on "Frost & Sullivan's Analysis Of Voice Markets And Fixed-to-Mobile Substitution In The United Kingdom" by research firm Frost & Sullivan.

According to the report, by 2007 49 per cent of revenues are expected to come from the mobile network - an increase from 38 per cent in 2000. The total value of substituted minutes is estimated to increase from GBP0.9 billion in 2003 to GBP1.36 billion in 2007.

Pricing is becoming more complex as mobile service providers move from per minute billing toward bundled minutes and location-based billing. They are also hoping that the shift from prepay to contract packages will materialise to allow them to lock in value and strengthen customer relationships. Though both options are popular, new subscribers are likely to favour prepay packages.

For now, declining prices - combined with the increasing fixed-line rentals - are driving the mobile-only option. With fixed-line rentals reaching almost 60 per cent of the total bill value, customers tend to prefer mobile voice services.

Apart from pricing issues, fixed-line operators are finding it increasingly challenging to combat the improved coverage and capacity of mobile services and the enhanced functionality of personalised and easy-to-handle handsets. In addition, the roll-out of 3G networks is also spurring the fixed-mobile substitution.

The overall scene in the voice market, therefore, favours the mutual co-existence of both fixed and mobile services. Moreover, the increasing proliferation of complementary voice over IP and non-voice communications such as E-mail, instant messaging and video telephony initiate the integration of mobile capabilities such as push-to-talk and ring tones into fixed lines.

"Rather than competing and eating into each others shares, a synergy between fixed and mobile markets seems to offer a perfect fit," notes Mr. ten Sythoff. "There is a lot of opportunity for video calls on fixed lines, as well as the convergence of other services such as sending an SMS from mobile to a fixed line and vice versa."


More information: http://www.frost.com...

comments powered by Disqus




Trending now »

Hot discussions in our forums right now:

What's your take on this whole no conviction rugby thing.
Created by Mspec, last reply by dejadeadnz on 30-Sep-2016 22:51 (116 replies)
Pages... 6 7 8


Getting Your Daily Fix - Sites you have to check everyday
Created by firefuze, last reply by Brumfondl on 29-Sep-2016 19:45 (23 replies)
Pages... 2


Buying without building consent/CCC?
Created by Zeon, last reply by neb on 27-Sep-2016 16:33 (38 replies)
Pages... 2 3


Galaxy Note 7 Announcement and Owners' Thread
Created by eracode, last reply by eracode on 30-Sep-2016 10:01 (976 replies)
Pages... 64 65 66


Housing prices....
Created by Linuxluver, last reply by Linuxluver on 30-Sep-2016 20:21 (113 replies)
Pages... 6 7 8


Gigabit in Auckland?
Created by jords12, last reply by networkn on 30-Sep-2016 18:06 (28 replies)
Pages... 2


Goodbye 2Degrees - Anyone for Slingshot ?
Created by angelars, last reply by jarledb on 30-Sep-2016 16:05 (14 replies)

When do the 'free' UFB installs end?
Created by ZollyMonsta, last reply by chevrolux on 29-Sep-2016 19:30 (14 replies)