Fixed-to-mobile substitution: strong but not unstoppable

Martin Venzky-Stalling, Director of Consulting

Most fixed operators today show a decline in their fixed lines, and all of them link this decline to fixed-to-mobile substitution (FMS). FMS is also damaging to most integrated players as well as pure fixed operators. This is because the revenue loss associated with the loss of an access line is typically greater than the gain from a customer's greater mobile spend.

FMS today is real and growing, but it is not unstoppable and fixed operators can defend themselves against it. The defence against FMS must take into account three key factors:

• users' perspectives on FMS
• mobile operators' strategies to promote FMS
• current and potential strategies and tactics to defend against FMS.

Martin Venzky-Stalling is the Director of Consulting at Ovum and manages all consulting activities globally. Based in London, he works across the telecommunications, media and high-tech sectors.