Answers to FMS

Answers to FMS
According to Analysys, the growing trend of fixed-mobile substitution is not a fatality. In a new report, Analysys give ways for reducing or even reversing the substitution of fixed lines with mobile services. Defensive tactics, such as attractive tariffs, strengthening the need for broadband access and related services, the promotion of attractive handsets, of attractive bunch of voice/ internet/ satellite TV/ mobile services, can be used. Belgacom is given as an example of attractive tariffs and strengthening the need for broadband access; Telecom Italia succeeded in deploying a range of innovative handsets and wireless VoIP residential services. BT also used attractive tariffs and a bunch of fixed/ internet/ mobile services, as well as Bellsouth. It is where companies controlling both fixed and mobile assets can have a competitive advantage, but only if used with competitive tariffs. The old telecom monopolistic company is over. As everywhere, marketing differentiation is key, and the customer is choosing the best service/pricing ratio.

An attempt, to demonstrate that it is true, is given by Bellsouth. Bellsouth is ready to charge extra for quality of service (QOS). Bellsouth is selling there its network reliability and performance, a notion too often forgotten by incumbents when selling services. No one network is equivalent to another one, it is a competitive advantage, and some incumbents are very clever for properly running their networks. The final customer will make the difference with a “quick and dirty”, best-effort-based network.