On the economics of fixed‐mobile convergence

Purpose – The purpose of this paper is to show that fixed‐mobile convergence (FMC) has gathered much interest in the telecommunications industry lately. Integrated operators (who own both fixed and mobile networks), are keen to exploit FMC benefits in order to save costs and generate new revenues. This paper aims to analyze the effects of converged network and service environment on the business of existing telecommunication operators.Design/methodology/approach – After an introduction to the regulatory, market, and technology related issues of convergence, the authors focus on analyzing the role of FMC technologies and services in their businesses of an integrated operator with existing fixed and mobile operations in a large Western European country.Findings – Results reveal that an integrated operator can benefit from cost savings, customer retention and prevent revenue erosion by migrating to FMC.Originality/value – This paper examines the effects of fixed‐mobile convergence to an integrated operator.