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Author
Henry Banks
Product Manager for Mobiles
Macquarie Telecom
What is Fixed Mobile Convergence (FMC)?
 Fixed
mobile convergence (FMC) can have different interpretations depending on who you
are talking to and what angle they are coming at it from; An example may be that
an operator with a sunk cost in fixed line technology may be looking for ways to
converge mobile traffic back onto the fixed infrastructure, however from mobile
operators point of view it would be looking to encourage the substitution of the
fixed handset call’s from the office or home across to the mobile operators
network.
FMC is essentially just as simple as it sounds; it is the convergence of fixed
and mobile calls onto a single handset or network. This may sound simple but
there are many different ways to achieve this objective.
FMC can be categorised into two distinct types, Technology based FMC Solutions
and Pricing only based FMC Solutions. Both types are explored below.
Technology based FMC Solutions
PBX Centric: In a PBX-centric architecture the corporate PBX is the
anchor-point for calls. All incoming calls are directed to the PBX number, and
all outgoing calls are originated from the PBX. When a phone is within range of
the corporate Wi-Fi, VoIP protocols connect it directly to the PBX, like a deskphone, when outside Wi-Fi coverage, the phone continues to act as a client
of the PBX. An incoming call at the PBX is passed to the phone’s cellular number
for completion, whereas when an outgoing call is launched from the phone, it
calls back to the PBX which then directs the call to the destination.
PBX Independent: PBX independent solutions are similar to PBX-centric
architectures in that the equipment is owned by the enterprise and installed
on-site, PBX-independent architectures are based on third-party servers and
software that work with different types of IP PBXs. The server acts as an anchor
point for call handover, but usually relies on the PBX and its telephony
gateways to dial outside calls. This architecture uses special client software
on the handset, primarily for Wi-Fi connection and handovers, but also provides
PBX features and optionally presence and instant messaging (IM) capabilities.
Carrier Centric Technology Solutions:
PBXs are not involved in a carrier centric architecture: the handset behaves as
a standard mobile phone everywhere and the subscriber will continue to receive
the same set of mobile services whether in cellular / Macro Network or the Pico
/ Micro Network or when in a configured Wi-Fi footprint. Unlicensed Mobile
Access or UMA is the most prominent form of carrier technology solution and to
date is the only technology based solution that is a Global System for Mobile
Communications (GSM) Standard. It effectively can allow an SMB / Enterprise or
home user to utilise their Wi-Fi zones to connect voice calls over an internet
protocol (VoIP). The mobile number is used for all calls, but the cellular
network transports calls over Wi-Fi only when the phone is registered via a
recognised access point.
Pricing only based FMC Solutions
Alternatively FMC could just be a price play; by distinguishing where the
handset is at the time of the call the mobile operator could just charge a
favorable rate from that cell or cells. One way that this could be done is by
charging the customer their “home” or “base” rate whilst on a Pico or Femto
cell. However you do not need to have Pico or Femto cells to be able to
distinguish where the call is originating from. This can easily be done via the
Macro network; the disadvantage of this to the operator would be that the “home”
rate effectively becomes a “suburb” rate.
Why is FMC important for enterprise customers?
FMC should allow for reduction in the total cost of ownership of an
organisations telecommunications infrastructure. By using FMC the enterprise has
the ability to limit the doubling up of telephones for employees and by
providing only one handset per employee the enterprise can significantly reduce
the cost of hardware and maintenance of fixed infrastructure.
Another benefit to the enterprise is to reduce the complexity and therefore save
on time resource by having only one voicemail to check, a single address book
and a single number for others to call. Added to this the ability to get a
unified presence system in place will help increase employee productivity
significantly.
So as fixed voice minutes decline the mobile operator needs to be in the best
possible position to take advantage of this shift in people’s behaviours.
Therefore a focus on increasing mobile market share should be the number one
strategy driver over the coming 2 – 5 years followed closely by a pricing
strategy to allow for the ease use by business and / or residential subscribers
to mitigating the risk of bill shock and give consumers a reason to use their
mobile device instead of the traditional home or desk phone.
Additional resources
More from Henry Bankes
Ovum’s advice to medium-sized companies for managing mobility costs and personal
usage of business devices
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