3GScottishUser
11th August 2005, 12:58 AM
From Ovum News (10/08/2005):
3 Sweden in a landmark dispute with TeliaSonera
Dow Jones this morning reported that 3 Sweden, a subsidiary of Hutchison Whampoa Ltd, has reported TeliaSonera to the Swedish competition authority after the latter introduced a flat fixed line tariff that carries no minute charge.
Comment: This is a significant development for two reasons. Firstly, it is a confirmation that the fixed and mobile voice markets are increasingly acting as one, making part of the current EU regulatory framework, which regulates them separately, an out of date piece of legislation.
Secondly, it is an indication of things to come in many other markets. Mobile operators are upping their substitution strategies in an effort to grow or stabilise voice ARPU: 3G entrants (such as 3) with across the board aggressive tariffs, incumbents with more targeted efforts, typically location-based tariffs. It is little surprise that fixed operators, such as TeliaSonera, are not standing still. They are responding with unlimited fixed voice tariffs, in an effort to prevent users from 'cutting the cord' and going 'mobile only'. The current efforts to launch convergent services by fixed and integrated operators are also partly aimed at defending against this threat.
As mobile markets saturate, and broadband growth levels off, this will be a fascinating battle to watch. Mobile operators currently have the mobility and convenience advantage, but fixed operators have the bandwidth and cost advantage. Both are trying to negate each other's strengths with fixed-mobile convergent and 3G+ efforts. Ultimately, the users will pick the winners.
http://www.ovum.com/news/euronews.asp?id=3022
3 Sweden in a landmark dispute with TeliaSonera
Dow Jones this morning reported that 3 Sweden, a subsidiary of Hutchison Whampoa Ltd, has reported TeliaSonera to the Swedish competition authority after the latter introduced a flat fixed line tariff that carries no minute charge.
Comment: This is a significant development for two reasons. Firstly, it is a confirmation that the fixed and mobile voice markets are increasingly acting as one, making part of the current EU regulatory framework, which regulates them separately, an out of date piece of legislation.
Secondly, it is an indication of things to come in many other markets. Mobile operators are upping their substitution strategies in an effort to grow or stabilise voice ARPU: 3G entrants (such as 3) with across the board aggressive tariffs, incumbents with more targeted efforts, typically location-based tariffs. It is little surprise that fixed operators, such as TeliaSonera, are not standing still. They are responding with unlimited fixed voice tariffs, in an effort to prevent users from 'cutting the cord' and going 'mobile only'. The current efforts to launch convergent services by fixed and integrated operators are also partly aimed at defending against this threat.
As mobile markets saturate, and broadband growth levels off, this will be a fascinating battle to watch. Mobile operators currently have the mobility and convenience advantage, but fixed operators have the bandwidth and cost advantage. Both are trying to negate each other's strengths with fixed-mobile convergent and 3G+ efforts. Ultimately, the users will pick the winners.
http://www.ovum.com/news/euronews.asp?id=3022