Abstract
"FMS is happening much more rapidly than many realise, with a significant
impact on fixed and mobile traffic levels and revenue. However, there are
substantial differences between countries and we show that mobile and fixed
operators' actions can still affect the outcome in a particular
market."Alastair Brydon, Analysys Associate
Voice traffic is migrating from fixed to mobile networks worldwide but the
extent and rate of this migration vary widely between countries. Fixed- Mobile
Substitution in Western Europe: causes and effects quantifies the true scale
of fixed- mobile substitution (FMS) in Western Europe, in terms of fixed-line
substitution and the migration of voice minutes from fixed to mobile networks.
The report considers a wide range of key metrics, such as the proportion of
households that are mobile-only; the proportion of voice traffic originating
on a mobile network; voice usage per capita; voice spend per capita; fixed and
mobile voice spend per minute; and the price premium of mobile voice over
fixed voice. The report assesses how these metrics have changed over a
two-year period, to provide insight into the rate of FMS and its effects.
Based on a wealth of fixed, mobile and demographic data, the report determines
the root causes of FMS, identifies how mobile and fixed operators' actions
have accelerated or decelerated FMS, and provides definitive guidance on
actions that mobile, fixed and integrated network operators can take to
address the immediate opportunities and threats presented by FMS.
Fixed- Mobile Substitution in Western Europe: causes and effects answers your key questions:
- What is the real extent of FMS in individual Western European markets, in
terms of the displacement of fixed voice lines and in terms of fixed and
mobile networks' respective share of total voice traffic and revenue?
- What are the reasons for the substantial differences in the extent of FMS
in different markets across Western Europe?
- What are the key factors that dictate the extent and speed of FMS in a
particular market? What is the impact of absolute price levels, the relative
pricing of fixed and mobile services, and the proportion of customers with
prepaid tariffs?
- Is FMS good or bad for mobile operators?
- What actions can mobile, fixed and integrated network operators take to
speed up or slow down FMS and to maximise their revenue from voice services in
the context of FMS?
Who should read this report
- Mobile network operators: understand the current extent of FMS, its
implications for revenue, and the steps that can be taken to maximise the
benefits, and minimise the risks, of FMS.
- Fixed network operators: assess the potential damage and timescales
of FMS and identify actions that can be taken to slow FMS and minimise its
effects on revenue.
- Integrated network operators: understand how FMS affects the voice
traffic and revenue of fixed and mobile networks and identify strategies for
maximising overall return.
- Regulators: understand the changing landscape of voice services as
fixed lines are displaced and voice traffic migrates from fixed to mobile
networks.
- Financial analysts and investors: understand the speed and extent
of FMS and its consequences for fixed and mobile networks.
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