Fixed-line phone operators facing tough times

3 March 2005

An increasing amount of pressure is being applied to traditional fixed-line phone operators such as BT from ever evolving mobile competition, reports reveal today.

Whilst the increased competition is surging the telecommunications industry as a whole, it is doing so at a rising cost to the phone operator who is having to invest in convergence opportunities such as mobile and IP telephony, mobile with fixed-line or media combined mobile offerings.

And this trend, according to analysts at last month's 3GSM World Congress, can only end in wholesale industry change for existing solely fixed-line operators.

Research from analyst Informa Telecoms and Media confirmed that drastic change is becoming ever more likely.

"This trend has forced fixed carriers to raise their game, with the result that a growing number are now developing mobile strategies," Informa contributor Shani Raja commented.

According to telecoms regulator Ofcom, UK consumer spending on mobile voice and text services reached £1.8 billion during the final three months of 2003, surpassing fixed-line calls for the first time.

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© 2008 Adfero Ltd

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