Fixed-Mobile Convergence: Market Developments and Policy Issues
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Unclassified DSTI/ICCP/CISP(2006)4/FINAL Organisation de Coopération et de Développement Economiques Organisation for Economic Co-operation and Development 23-Mar-2007 ___________________________________________________________________________________________ _____________ English - Or. English DIRECTORATE FOR SCIENCE, TECHNOLOGY AND INDUSTRY COMMITTEE FOR INFORMATION, COMPUTER AND COMMUNICATIONS POLICY Unclassified DSTI/ICCP/CISP(2006)4/FINAL Working Party on Communication Infrastructures and Services Policy FIXED-MOBILE CONVERGENCE: MARKET DEVELOPMENTS AND POLICY ISSUES English - Or. English JT03224355 Document complet disponible sur OLIS dans son format d'origine Complete document available on OLIS in its original format DSTI/ICCP/CISP(2006)4/FINAL FOREWORD This report was presented to the Working Party on Communication Infrastructures and Services Policy in December 2006 and was declassified by the Committee for Information, Computer and Communications Policy in March 2007. The report was prepared by Mr. Yoshikazu Okamoto of the OECD's Directorate for Science, Technology and Industry. It is published on the responsibility of the Secretary-General of the OECD. © OECD 2007. 2 DSTI/ICCP/CISP(2006)4/FINAL TABLE OF CONTENTS MAIN POINTS............................................................................................................................................. 5 1. Introduction........................................................................................................................................... 6 2. Technological aspects ........................................................................................................................... 9 2-1. Unlicensed Mobile Access (UMA) .............................................................................................. 10 2-2. FMCA........................................................................................................................................... 10 2-3. Femtocell...................................................................................................................................... 11 2-4. IP Multimedia Subsystem (IMS).................................................................................................. 11 2-5. Mobile WiMAX (including WiBro).............................................................................................12 2-6. IEEE 802.20 ................................................................................................................................. 13 3. Market description (The analyses presented in this section are based on information available as of September-October 2006.).............................................................................................................. 13 3-1. The rationale for FMC.................................................................................................................. 13 3-2. Stages of FMC.............................................................................................................................. 15 3-2-1. General trends........................................................................................................................ 15 3-2-2. FMC using broadband/Wi-Fi connections ............................................................................ 17 3-2-3. Mobile based ‘dual-mode’ services....................................................................................... 17 3-2-4. Network convergence............................................................................................................ 18 4. Policy implications.............................................................................................................................. 19 4-1. Market definitions of FMC........................................................................................................... 19 4-2. Numbering related issues ............................................................................................................. 20 4-3. Universal service related issues.................................................................................................... 22 4-4. Price regulation issues.................................................................................................................. 23 4-5. Interconnection issues .................................................................................................................. 23 4-6. Licensing issues............................................................................................................................ 25 4-7. Competition related issues............................................................................................................ 26 ANNEX ...................................................................................................................................................... 29 Service patterns and tariffs in selected OECD countries.........................................................................29 France .................................................................................................................................................. 30 Germany .............................................................................................................................................. 31 Italy...................................................................................................................................................... 32 Netherlands.......................................................................................................................................... 33 United Kingdom. ................................................................................................................................. 34 Australia............................................................................................................................................... 35 Denmark .............................................................................................................................................. 35 Finland................................................................................................................................................. 36 Hungary ............................................................................................................................................... 36 Japan.................................................................................................................................................... 36 Korea ................................................................................................................................................... 37 New Zealand........................................................................................................................................ 37 Norway ................................................................................................................................................ 37 Portugal................................................................................................................................................ 38 Spain.................................................................................................................................................... 38 Switzerland .......................................................................................................................................... 39 United States........................................................................................................................................ 39 VoWi-Fi............................................................................................................................................... 40 3 DSTI/ICCP/CISP(2006)4/FINAL GLOSSARY ............................................................................................................................................... 41 Box Box 1. Main functions of the FMCA ...................................................................................................... 11 4 DSTI/ICCP/CISP(2006)4/FINAL MAIN POINTS This paper provides an overview of the evolution towards fixed-mobile convergence (FMC). This evolution is driven by declining average revenues per user in both the mobile and fixed markets, and competition from other technologies, as well as from voice over Internet Protocol services. FMC will be facilitated by the adoption of Next Generation Networks in which all communications traffic uses Internet Protocol. The main findings are: • There are ranges of ways being used to provide FMC services, some of which are more technologically integrated than others. Dual-mode cellular/Wi-Fi handsets and using Wi-Fi modems in the home environment to access VoIP through ADSL connections can be found in some countries. There are less evolved forms of FMC using cellular/Wi-Fi dual-mode handsets that do not have a handover function or have a handover function but do not utilise a fixed voice or broadband network in the home. Services also exist linking both fixed and mobile networks which are not technologically converged, such as those offering a single voice mailbox over both fixed and mobile networks. • Voice and data services for cellular networks are being bundled, although data services are sometimes provided through wireless cards for laptops. In this case, there is no interface between cellular and Wi-Fi networks and those services tend to