The Emergence of the Femtocell

By Paul Tingey

Amongst all the news (and some would say hype) about Fixed Mobile
Convergence, there is another market dynamic being played out which may
lead to an alternative form of change. Fixed-to-Mobile Substitution
(or FMS) aims to increase the proportion of calls made from traditional
2G/3G mobile handsets at the expense of those made from other devices
such as fixed lines or dual-mode (or converged) handsets.

In reality this is a trend started by consumers themselves who,
attracted by falling mobile call rates, have begun to use their mobile
phones for all their voice calls whether they are outside of or within
their homes. This substitution effect is most noticeable (for fixed
line operators) amongst new users (i.e. in new households) who are
often opting not to have a fixed line phone installed at all.

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