Fixed-Mobile Substitution in Western Europe:
causes and effects 

Published by Analysys Mason (January 2007)

 

Dr Alastair Brydon, CEO of Sound Partners Dr Alastair Brydon
CEO of Sound Partners

Dr Mark Heath
Director of Research, Sound Partners

 

  “FMS is happening much more rapidly than many realise, with a significant impact on fixed and mobile traffic levels and revenue. However, there are substantial differences between countries and we show that mobile and fixed operators’ actions can still affect the outcome in a particular market.”  
 

Product overview

Voice traffic is migrating from fixed to mobile networks worldwide but the extent and rate of this migration vary widely between countries. Fixed–Mobile Substitution in Western Europe: causes and effects quantifies the true scale of fixed–mobile substitution (FMS) in Western Europe, in terms of fixed-line substitution and the migration of voice minutes from fixed to mobile networks. The report considers a wide range of key metrics, such as the proportion of households that are mobile-only; the proportion of voice traffic originating on a mobile network; voice usage per capita; voice spend per capita; fixed and mobile voice spend per minute; and the price premium of mobile voice over fixed voice. The report assesses how these metrics have changed over a two-year period, to provide insight into the rate of FMS and its effects.

 Based on a wealth of fixed, mobile and demographic data, the report determines the root causes of FMS, identifies how mobile and fixed operators’ actions have accelerated or decelerated FMS, and provides definitive guidance on actions that mobile, fixed and integrated network operators can take to address the immediate opportunities and threats presented by FMS.

  

Full information on the report 

Click here to get full information on the report from Analysys Mason.

 

This report answers your key questions

Fixed–Mobile Substitution in Western Europe: causes and effects answers your key questions:

  • What is the real extent of FMS in individual Western European markets, in terms of the displacement of fixed voice lines and in terms of fixed and mobile networks’ respective share of total voice traffic and revenue?

  • What are the reasons for the substantial differences in the extent of FMS in different markets across Western Europe?

  • What are the key factors that dictate the extent and speed of FMS in a particular market? What is the impact of absolute price levels, the relative pricing of fixed and mobile services, and the proportion of customers with prepaid tariffs?

  • Is FMS good or bad for mobile operators?

  • What actions can mobile, fixed and integrated network operators take to speed up or slow down FMS and to maximise their revenue from voice services in the context of FMS?