The impact of converging services

‘Facing Off on Convergence’ is the fifth report in the series from Exane BNP Paribas and Arthur D Little. It is based on 72 interviews with major players in 11 European countries.

The consensus:
• rate cuts on mobile services driven by the imminent arrival of mobile- WiFi hybrid offers and later of future broadband mobile technologies
• ongoing mobile traffic growth (fixedmobile substitution) boosted by these rate cuts – fixed-line revenues will continue to fall, but mobile revenues will start to decline too
• overall mobile growth will be sustained by mobile broadband, but only via a high level of market sharing with internet services and content providers.
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