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SOLUTION PROFILE

 

As the name implies, fixed-mobile convergence (FMC) describes the trend towards the integration or seamless connectivity between fixed-line and mobile services and technologies to create a single communications network.

 

FMC promises much in terms of simplified and convenient communications as it will optimise the transmission of voice, data and video irrespective of an end user’s location or device. This means that fixed-line providers need not be shackled to landline networks, while wireless network operators can draw on the indisputable qualities of fixed-line to provide sophisticated services to mobile customers.

 

FMC harnesses the strength of both the fixed and mobile worlds. The possibilities contained in such a scenario have rightly captured the imagination of the global telecommunications industry.

 

Telkom is no exception and we have identified FMC as one of the major components of our growth strategy. This is made possible by the recent liberalisation of the licensing regime, advancements in convergence technology and the termination of the Vodafone shareholders agreement.

 

Evolving into a provider of FMC services must not be equated to becoming a mobile operator. Our move into offering a fully fledged mobile service is dependent on the finalisation of market research and the outcome of pilot and customer trials planned for the end of 2009. We aim to differentiate ourselves from the traditional mobile operators by pioneering FMC services, and by offering a number of value-adding benefits to customers, including:

 

• Offering products and services that are not only more affordable, but more reliable than what is currently available.

 

• Ensuring we provide the convenience and quality which technology- wise customers demand.

 

• Entrenching a customer-centric approach that will result in, among other things, easy-to-use, feature rich services. Telkom is equipped to enter the FMC environment Our ongoing evolution to become a leading IT player on the continent has put us in an ideal position to enter the FMC environment.

 

Our prime asset and our core strength is our network. No other telecommunications operator in South Africa has a network that can deliver the speed, quality and reliability of our fixed-line network. The continued growth in the Next Generation Network (NGN) is now providing the network intelligence to provide innovative, solutions. Going forward, we will leverage our network to provide for the growing demand for converged products.

 

We are in the process of deploying W-CDMA technology, a 3G network that supports services such as mobile high-speed internet access, video and superior quality voice transmission. In this regard we have already rolled out 141 W-CDMA sites in major metropolitan areas throughout the country, and have launched broadband services that utilise this technology. Deploying W-CDMA is a decisive move on the journey to become a fully fledged converged service provider.

 

A further encouraging development is the launch of pilot consumer services in areas where we have constructed infrastructure. These include:

 

• A nomadic voice service known as Mobi which comes in both Prepaid and Postpaid format. Mobi allows customers to move around and utilise the service anywhere within the Telkom 3G coverage area.

 

• Do 3G on the Move – a 3G Internet data service. Our offering includes high-speed downlink packet access (HSDPA) and high-speed uplink packet access (HSUPA) features.

 

It goes without saying that we aim to develop a focused portfolio of fixedmobile converged business solutions, including FMC voice and data services and enterprise applications supported by flexible billing. Entering the FMC space does not come cheap. It is worth considering, however, that the transition form a fixed-line operator to a FMC operator is significantly less costly, and faster, than a mobile operator having to make the same transition. This is due to the capital investment required to build fixed infrastructure, as well as the labour intensive nature of such an undertaking.

 

Again, I have to emphasise that our NGN enables us to deliver innovative products and services to our customers as technology evolves. Evolving to a FMC provider will not happen overnight and we have decided on a phased approach to implement FMC. There is no denying that demand exists and we will satisfy this demand. It’s what customer centricity is all about.