The Global Fixed Mobile Convergence (FMC) Market: Segments and Recent Developments

Published: Jan 2023

Fixed Mobile Convergence (FMC), also known as Fixed Wireless Access (FWA), is a high-tech trend that connects fixed and mobile telecommunications networks in real time. The basic goal of FMC is to optimize all data, phone, and video communications among end-users, regardless of their location or device. Simply described, FMC is an architecture that enables communication operators to use the resources and infrastructure of both wireless and fixed networks. FMC is the transition point in the telecommunications industry that will eventually eliminate the distinctions between mobile and fixed networks. It provides customers with a superior experience by creating seamless services using a combination of local access wireless technologies and fixed broadband to cater to their needs in homes, offices, and other buildings, as well as on the go.

Segments of the Market

The global FMC market is divided on the basis of component and end-user. On the basis of components, it is subdivided into services and infrastructure. On the basis of end-user, it is subdivided into enterprises and home users. The home user segment held the highest market share of 88.0%, accounting for $53.0 billion in 2021, which is anticipated to grow at the highest CAGR of 19.3% during the forecast period.

Recent Developments

Companies such as ZTE Corporation (China), Cisco Systems Inc. (US), Nokia (Finland), Turkcell (Turkey), Huawei Technologies Co., Ltd. (China), Fujitsu (Japan), Turk Telekom (Turkey), The Proximus Group (Belgium), Vodafone Group PLC (UK), Samsung Group (South Korea), Orange SA (France),  Deutsche Telekom AG (Germany), Ericsson (Sweden), Verizon Communication, AT&T, Comcast Corp. (Xfinity), A1 Telekom Austria Group, British Telecom, China Mobile, China Unicom, SK Telecom, and China Telecom, among others are contributing to the market’s growth by opting for various investments, mergers, and acquisition activities. Some recent developments in the market include:

In September 2022, Tango Networks won its 100th patent for its ground-breaking fixed-mobile convergence technology. Tango Networks' award-winning Extend solution transforms any mobile phone into a fully functional extension of a business's communications infrastructure. Employees can now experience true mobile unified communications, boosting communications efficiency and overall productivity regardless of location.

In September 2022, Orange completed its acquisition of a 54% controlling share in the fixed line activities of Telekom Romania Communications, now known as Orange Romania Communications. Six months after the deal, the two companies have reached a number of significant milestones as Orange Romania unifies its landline and mobile operations under the Orange brand.

In November 2022, Orange will be the first carrier on the African continent to offer 5G services. Orange Botswana launched 5G with coverage in greater Gaborone and Francistown, offering 30% of the population coverage. Orange Botswana has debuted new 5G FWA and mobile data bundles aimed at residential customers and small and medium enterprises.

In March 2022, Microsoft launched its new Operator Connect Mobile feature for its Teams app. Teams' voice communications are primarily routed through mobile network carriers' 4G and 5G calling capabilities. As a consequence, audio conversations are more stable and don't rely solely on internet connections, and Microsoft's Teams software and the native dialer on Android and iOS handsets are more tightly integrated. The service also allows a conventional audio connection to be converted into a Microsoft-controlled Teams video session. However, rather than supporting employees' existing phones, it currently requires businesses to provide suitable phones to their employees. According to the company, by linking mobile networks to the Microsoft Office 365 cloud, the new solution utilizes Microsoft’s Azure for Operators offering.

Conclusion

The fixed wireless trend is becoming an important option for connecting rural and underserved regions, but it is also providing service providers with critical chances to extend their broadband footprint using both 3GPP-based and non-3GPP-based technologies. The advent of 5G New Radio (NR) networks, which are utilized to deliver both fixed wireless and mobile internet, is also presenting significant prospects for the FMC sector. The large network infrastructure and higher spectrum efficiency of 5G significantly increase the economics and technical viability of FWA installations, allowing the FMC sector to enable new deployments and revenue prospects. Due to this, according to OMR Research, the FMC market was valued at $61.4 billion in 2021 and is anticipated to reach $211 billion by 2028, growing at a CAGR of 18.7% during the forecast period.