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December 03, 2006

Fixed Mobile Convergence Challenged: In Search of Seamless Wi-Fi Roaming

This morning I’m looking ahead to my talk in Atlanta on Tuesday at VON Enterprise.I have been thinking about where Fixed Mobile Convergence (FMC) is as 2006 is coming to a close and could not help but notice the continued hype surrounding the topic.

I am amazed how often “people” just assume with the growing availability of Dual Mode phones and the growing widespread availability of public Wi-Fi hotspots means that therefore Wi-Fi VoIP is a “major threat” to the established cellular industry and future 3G deployments. In fact, according to some business reporters and bloggers, Wi-Fi VoIP is already a done deal. There is no doubt in my mind the advent of the availability of dual-mode phones from major suppliers (like Nokia) means that people believe in the vision. However, other than using such devices in a “fixed mobile environment” like an Enterprise Campus or a home, until such time that seamless roaming is available across unaffiliated wi-fi hotspots, the hype surrounding these phones will never be realized. Did I just say never? I guess I just did.

There should be no doubt about the potential threat to mobile operators when software that offers seamless mobility across unaffiliated wi-fi hotspots is widely available and supported on devices that range from dual-mode phones and PDAs to notebook PCs and Macs. Of course there is that other assumption that the hotspots actually will have the capacity and bandwidth available to support multiple Wi-Fi phone calls, but no one ever really talks about that. And then there is the issue of using an IP enabled devices in a hotspot that require the use of a browser to authenticate an edge device. But these are all just some of the details that those who write about the hype of FMC just overlook. For most people it is easier to talk about the threat to the wireless industry rather than to address the realities of today.

Eventually it is quite possible that the widespread availability of public Wi-Fi will mean that in the future consumers will have a choice of whether to pay for data services on their mobile phones or choose to take advantage of Wi-Fi hotspots to use PCs, PDAs and other IP supported devices. But who says that people will be using these devices as a replacement /substitute for their mobile phones? Seems like just another assumption.

Sure, it is easy to get sucked into the mythology of the hype surrounding Fixed-Mobile Convergence, but I do have to ask the question of “who are the buyers for the service?” and outside of the early-adaptor geek population, “how many consumers end up with these converged communication devices?” and while I’m at it, “how many people will choose to talk on these devices rather than use them for email, instant messaging and access to the web?” The people who answer these questions correctly will no doubt have their pulse in the future multi-billion dollar FMC marketplace.

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Posted by jeff on December 3, 2006 07:23 AM | Permalink

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Posted by: Cruise at December 12, 2006 05:19 PM

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Posted by: Cruise at December 12, 2006 05:02 PM

Actually this is a great opportunity for a third vendor to the telco and cable companies to deploy a fiber and integrated wireless computer network last mile solution and offer consumers true competition. Cost? - just somewhat more than Verizon is paying for its fiber-only network.

Posted by: Johnston, Ernie at December 5, 2006 11:30 AM

There's actually a disincentive to making this happen. Most of the big carriers are deploying their own broadband wireless networks that compete with WiFi. Its a good bet that they would want the handsets to use those networks over using 802.11 and will put in technical elements to make that happen.

Posted by: Frank Miller at December 4, 2006 10:08 AM

Great insight on this issue Jeff.

On a related note, the wireless industry will embrace WiFi and WiMax (some companies more than others) to augment their services. They realize that consumers don't care whether they are on 3G, WiFi or WiMax. Consumers want access to information anytime, anywhere and on any device. Accordingly, whatever can be utilized to give them the best experience and unload capacity off their network is a win-win situation.

Posted by: Chris Parandian at December 3, 2006 07:53 PM

Thanks for the astute reality check. It's easy for early adopter geeks to get swept up in the OMG COOL factor and not step back and realize that until the technology has equal or greater ease of use to the established technology, it's going nowhere. I'm guilty for sure.

Posted by: David Kowarsky at December 3, 2006 12:55 PM

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