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Operators with both fixed and mobile assets are best positioned to offer converged user–centric broadband services across fixed and mobile access. To leverage their position successfully, they will need to radically rethink their service and network architecture and their operational practices, feels A. Sethuraman, Chief Marketing Officer, South Asia, Alcatel-Lucent..
In an interaction with Idhries Ahmad of CIOL, A. Sethuraman says that it is still in early days for FMC, though almost all service providers are showing keen interest on IMS (IP Multimedia Subsystem).
Sethuraman also talks about the global trends in the FMC space and the factors that will drive FMC adoption in the near future
Can you brief me how Alcatel Lucent looks at the concept of Fixed Mobile Convergence FMC space and what is Alcatel Lucent doing in the space
FMC is the convergence of fixed and mobile networks and using a single terminal that is capable of moving seamlessly across different types of environments (e.g., home, work, road, mobile). The common use of these networks and above all, their services is Fixed Mobile Convergence. FMC is the integration of wireline and wireless networks and services to provide a seamless communications service for voice and data, regardless of underlying access technologies. FMC not only provides operators a strategy of product differentiation in the short-to-medium term but also a low-cost strategy to retain and attract customers in the long term.
Alcatel-Lucent is well positioned to help operators in this overall IP transformation, at both the network element and composite solution levels, since it has the required product portfolio and the experience as an integrator in major network transformation projects across the globe.
Successful, large–scale integration projects have been implemented for AT&T, TNZ, Telstra and T–Com Slovakia, and Alcatel-Lucent has a prime involvement in BT’s 21CN project.
How do you see the adoption of FMC happening globally? And where do you see Indian telecom operators moving in the space?
FMC in India is still clearly in a nascent stage, with “convergence” mainly confined to cross-selling and bundling of wireline and wireless services. However trials and commercial launches of true FMC services are occurring in a number of mature markets. Several trials have been launched by major operators such as T-Mobile USA, NTT DoCoMo, Cegetel, BellSouth & Cingular.
Commercial launches have been initiated by BT (BT Fusion), France Telecom (Business Everywhere), and Korea Telecom (MU). In India, almost all operators are considering deploying IMS in the coming years. The IP Multimedia Subsystem framework will enable operators to efficiently deploy IP Multimedia applications in a network agnostic manner.
 The ultimate aim of IMS will be to achieve Fixed Mobile convergence.
What are the factors driving FMC deployments globally
Within some service providers, the boundaries between fixed and mobile operations are blurring. To a large extent, this comes from the search for new sources of revenue to compensate for revenue loss in their traditional market segment, and from end users (especially business users) looking for a unified solution for all their telecom needs: fixed, mobile voice (and video), and also data connectivity.
The revenue loss is most marked in the fixed voice business, and is not sufficiently compensated by mobile revenue increases from fixed/mobile substitution. As a result,
• Fixed operators are focused on introducing new services (e.g. IP TV, VoIP, personalization), but at the same time are entering the mobile space with limited mobility services (e.g. BT Communicator, BT Fusion);
• Mobile operators are focused on fixed substitution, whilst extending their service portfolio by introducing DSL (Orange/Cable & Wireless, Mobistar, Vodafone).
Today, combined operators (operators with both fixed and mobile assets) are operating their fixed and mobile operations as separate businesses. This is starting to change, as e.g. FT/Orange and AT&T/BellSouth/Cingular are looking to integrate organization and service offers, driven by the challenge of responding to end–user expectations and reducing costs. BT Fusion is the one of the first really converged service offers. But given the assets and business configurations of combined operators, it is clear that it is only a matter of time before they will try to find innovative ways to tie their services together.
FMC seeks to enable the delivery of user-centric ubiquitous services, improve customer loyalty, increase usage by improving usability, and drive a reduction in OPEX by moving all applications onto a single, flexible IP platform. While this is an attractive value proposition for any type of service provider, wireline players stand to be the main beneficiaries of FMC, since its core revenue stream — voice — has been eroding in the face of extraordinary growth in mobile usage.
Consumers want the convenience of a single number and a single bill from one provider. This is the anywhere/any time/any device/any content mantra we so often hear about, and FMC is a big step forward for doing so. Businesses want the ability to extend the desktop experience – as well as its look and feel – to employees when they are mobile. With FMC, this capability can be delivered equally well by a fixed or mobile provider, which opens up the market to new entrants.
If FMC is solve all solution for all subscribers. What it hasn’t been able to make a progress it needs to have. What are the key challenges in the deployment of FMC services
Although the initial focus is on converged voice services, it must certainly go beyond pure voice to generate new revenues, so as to be more than a defensive play. Today’s deployments are hampered by a limited choice of devices, and commercial issues.
To survive in today’s hyper-competitive marketplace, service providers must transform themselves to deliver new personalized and blended services, to redefine the end-user experience, increasing satisfaction and keeping value in the network.
Alcatel-Lucent helps our customers to create a customized path to profitable growth through fundamental changes to network, services and business operations in order to deliver user-centric services. These changes make service providers and enterprises more competitive by lowering transformation risk, accelerating business innovation, and enabling delivery of these new services across a cost-effective, intelligent, service-aware, converged network and optimized business operation model.
What are the major trends in FMC deployments (India and abroad)
Its still early days for FMC in India though almost all service providers are showing keen interest on IMS (IP Multimedia Subsystem). A recently published report puts the estimated number of FMC subscribers at 436,000 as of the end of 2006.
How Indian Telco's are moving in the FMC space
Most of the major operators in India are expected to have commercial launches of some form of converged communication within the next 12 to 18 months. However, most existing operators prefer to take a cautious approach in launching these services so as to avoid cannibalization of existing revenues.
Indian operators are considering deploying IMS in their networks soon.
Operators with both fixed and mobile assets are best positioned to offer converged user–centric broadband services across fixed and mobile access. To leverage their position successfully, they will need to radically rethink their service and network architecture and their operational practices.
Alcatel-Lucent is well positioned to help these combined operators in this overall transformation at both the network element and composite solution levels; it has the required product portfolio and the experience as an integrator in big network transformation projects across the globe.
How do you see the future for FMC as a technology
The market is calling for more innovation and flexibility. Flexibility has become in particular a key requirement for service providers who need to respond quickly to rapidly changing trends in a highly competitive market like India.
To respond to these needs, service providers need to transform their network at several layers: the control layer, the service delivery layer - and also the transformation of their users expectations. The service providers need to rethink their service and network architecture and their operational practices.
Service transformation consists of an evolution towards an Open Service Delivery Environment by deploying a mix of voice and multimedia services based on IMS, fixed and mobile IP TV services, and a set of enterprise services. On top of this, composite services can be built that capitalize on common service enablers via a Web Services–based service orchestration. There is also a need for network transformation, where convergence between fixed and mobile networks can be exploited. Carrier–grade Ethernet networks can be used for aggregating fixed and mobile traffic, and simplify network planning and provisioning. In the IP backbone, interconnections are based on MPLS and optical WDM.
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