Minimum infrastructure integration for fixed-mobile converged offerings

Abstract

In the face of increased competition from mobile operators and their continued dominance traditional fixed-line incumbents were forced to acquire or build mobile capability and become integrated operators. However, the advantages these mobile operators derived from early entrance in the mobile market makes it difficult for incumbents to compete against them, even with mobile capability. Integrated operators therefore see Fixed-Mobile Convergence (FMC) as the next evolutionary step to increase their competitiveness through differentiation. FMC requires significant investment in infrastructure and technology integration which comes at significant cost. This is further compounded by un-assured return on investment for the capital employed to integrate infrastructure. This study explores the customer experience benefits envisaged by the implementation of FMC as well as the minimum level of infrastructure integration required to support FMC sustainably. Data was collected through semi-structured interviews with open ended questions and was exploratory in nature. The key findings were that FMC provides clear differentiated customer experience benefits around convenience & simplicity, cost, quality and innovation in relation to traditional telecommunication services. These benefits had to be achieved in totality to obtain real differentiation while achieving them required integration across the system, network, organisation and strategic levels of the organisation. It was also found that complete integration is required to deliver FMC sustainably, however, this can and should be done in a phased manner in order to capture available opportunities immediately and to manage risk. Integrated operators should therefore pursue FMC in a measured and cautious way while considering all the elements required to differentiate their offering from existing substitute products. The infrastructure integration roadmap should also be context specific and executed in a phased manner.