FMC: No, it's not fast-moving consumer - as in FMCG - but it may as well be as it moves voice calls at the speed of light over IP networks.
Fixed mobile convergence (FMC) is about allowing users to stay mobile, using multiple networks and not just GSM, in a seamless, ad hoc manner. And the trend is growing, estimated at over 100% compound annual growth rate over the next four years. This is exciting news for consumers, businesses, and of course providers of services outside of GSM.
Internet Solutions (IS) has begun the development of its FMC services, with corporate "on-campus" calls being the initial sector that will be first to benefit from the cost savings.
"Statistics show that up to 80% of corporate employees are mobile, in or around their main office building. They are what we refer to as the 'corridor warrior'," says Justin Spratt, head of FMC services at IS.
"Many GSM calls start and end inside the same building due sometimes to laziness or convenience. Cost wise, for a corporate, it's a totally unnecessary expense. Corporates are spending up to 30% of their call costs from fixed-line to cellular. Companies are also frequently subsidising GSM bills and many calls made by employees as they are made from a cellphone to numbers within the campus or to a fixed-line, where using a fixed-line to make this call would be far more cost-effective. Employees use the most convenient and easy methods at hand."
FMC from IS will initially address seamless switching between GSM and wireless connections as this is more cost-effective where companies have widespread wireless networks in their offices and campuses. Advancements in wireless technology with meshed wireless networks make this a simple reality at relatively low capital costs. "Imagine receiving a call from colleagues on your cellphone without using the GSM network at all, or in a wireless area making calls from your cellphone, which uses your corporate PABX to terminate the call over fixed-line, thus using cheaper least-cost routing (LCR), or back wirelessly to another colleague who is actually on campus," adds Spratt. "The cost savings to the company are significant."
The technology requires handsets which support wireless connectivity, interfaces into a VOIP network and a wireless connection. "Most handsets these days have built-in wireless, corporates have wireless networks, and with the growth of clients using VOIP and IS VOIS (voice over IS) community, we will have the ability to make a difference to corporates' telephony bills in a very real way," says Spratt. "Add roaming to our country-wide hotspots available in over 300 locations around the country and we have a good starting network, especially since around 70% of all calls emanate from inside buildings, home or work, or wireless areas."
"The FMC services can also be expanded to many locations such as the hotspots mentioned as well as wireless networks at home, or through SIP clients on users' desktops. The initial wireless/GSM handoff is really just the tip of the iceberg, with PABX functionality and consumer services, single number integration and presence awareness for multiple numbers being only small leaps from the initial offerings. IS plans to launch FMC services within the coming months as proof of concept to corporate clients. We expect this to be a large growth space and something corporate and consumers alike will be watching with eagerness," Spratt concludes.
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