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July 29, 2007
A Guest Blog from Bob Emmerson
My friend Bob Emmerson responded my "What does FMC mean to you?" with this note.
Voltaire and FMC
Voltaire is reputed to have said that: “Before we converse we must define our terms.” That still sounds like good advice. From a technology perspective FMC represents the ability to move seamlessly between fixed line networks (Wi-Fi now, WiMAX in future) and cellular networks (2.5/3G). That’s doable and Divitas and a few other companies have done it. However, the market for this development will only take off when the end user perception is that of a single, ubiquitous network and that goal is work in progress. In addition, users will expect to get low-cost VoIP in urban areas: calls that are transported over the Internet — not calls that are backhauled over the network of a mobile operator.
Thus, from that perspective, FMC has a way to go and along that way there are hurdles to be overcome and roadblocks to be demolished. Mobile network operators (MNOs) have witnessed VoIP’s seismic impact on the revenues of fixed line operators and they naturally want avoid to a similar fate. One knee-jerk, roadblock reaction to this threat is alarming. At the time of writing (Q2 2007) two leading UK operators have crippled VoIP-capable handsets such as Nokia’s flagship phones, i.e. they have removed the VoIP capability.
The immediate threat to MNO revenues comes from young householders, i.e. former kids that grew up with a call phone in their hand. That’s what happened in Europe. A dual-mode phone can find Wi-Fi Access Points (APs) in the home. It’s automatic if the network is open: the access code has to be entered if it is secure, but the user will know it. Thus, you can make low-cost VoIP calls on your mobile device. But APs in hot spots and hotels are secure and they were designed for data. You load Internet Explorer — it has to be this browser — and it finds the AP, but access is only enabled by entering a code, for which you pay. Dual-mode phones have a browser but it’s not IE and until that hurdle is removed we won’t have ubiquitous access to the Net.
The issue here is ownership of the hot spots and the ability of one service provider, or a group, to create citywide coverage. Note that around 80% of all cell phone calls are made from urban areas. If it’s an Internet SP then calls will be low-cost. If it’s a MNO then they will play the UMA (Unified Mobile Access) card.
This is how it works. A mobile subscriber with an UMA-enabled, dual-mode handset moves within range of an unlicensed wireless network to which the handset is allowed to connect. Upon connecting, the handset contacts a network controller over the broadband IP access network in order to be authenticated and enable authorized access to the services on the cellular network.
This means that the MNO controls the call and charges you for the privilege and in the home environment you will not be using the service of your ISP, for which you also pay. So, caveat emptor: “let the buyer beware”.
In my book FMC isn’t a done deal although the future is rosy. At the end of the day it’s just a three-letter word and as a latter day Humpty Dumpty might say: ““When I use a word like FMC it means just what I choose it to mean – neither more nor less.”
Posted by carl at July 29, 2007 02:56 PM