Fixed-Mobile Convergence: Creating Values with Appropriate Business Models

The telecommunications industry is in the midst of the trend of IP (Internet protocol) convergence, with the shift from circuit-based networks to IP packet-based networks being driven by the new rich service innovation opportunities and cost savings they offer. Currently, the domestic telecom service market is divided between fixed-line and mobile providers. As such, not only networks, but also operators and services are evidently divided into two markets. On top of these, fixed-line services and wireless services are offered via separate terminals. The merits of fixed-mobile convergence (FMC) become clear when both fixed and wireless services can be accessed at the same time via a single terminal, and users only receive one bill from a single telecom operator. This study presents the principal classes of stakeholders who will participate in the FMC industry and give an overview of their business models on a formalised ontology. The research looks into the industry from multiple perspectives concerning the technologies, services, networks and users. The approach taken in this study is inclusive instead of restrictive; including a number of services delivered through mobile or fixed-line devices, whether it is a fax machine, mobile phone, a personal digital assistant or a handheld gaming device, etc. In this manner, it is possible to deal with foreseeable convergence of the various technologies. The study also tries to collate and rationalise possibilities and restrictions of existing and emerging FMC technologies with respect to the business model. The study concludes with a number of usage scenarios to reflect the emerging opportunities in the FMC value Web