Fixed-mobile service convergence: the good, the bad and the promise

Fixed-mobile convergence is one of the most widely discussed themes in the telco industry. According to GSMA Intelligence data, more than half of mobile operators worldwide have fixed operations (broadband and voice) and many also have pay-TV operations. However, owning mobile and fixed operations doesn’t automatically translate into convergence. In most cases, these are still run as separate businesses, with distinct business units.

There are three main types of fixed-mobile convergence: operations, network and service convergence. Only a few operators are truly converged at all three levels; examples include Telefónica in Spain, Orange in France, KPN in the Netherlands and Vodafone in some of its markets.

This reports looks at fixed-mobile service convergence (FMC) from several angles: the lessons learnt so far in pioneer markets (France, Spain and Portugal), the lifecycle of FMC, and its impact on operators and markets. Europe leads on FMC, aided by in-market consolidation and cross-sector M&A over the last few years. Looking forward, the report examines the role of content in future quad play propositions in the context of cord cutting and the unprecedented growth in the cost of producing content. Finally, the analysis considers the role of mobile in the future of FMC.