German fixed-line operator Deutsche Telekom [1] ended its fixed-mobile convergence service, known as T-One, after attracting less than 10,000 subscribers since launching last August. Poor marketing, high tariffs and a lack of compelling handsets were largely to blame for the slow uptake. DT offered just one handset model. The service also failed to differentiate from the plethora of home zone pricing plans--which charge flat mobile voice rates for customers who use the service in the homes--from mobile operators, including its own sister company T-Mobile.
Pyramid Research notes that these types of FMC services around the world have grown slowly. At the end of 2006, FMC global subscriptions accounted for fewer than 400,000. Pyramid says this represents less than 3 percent of triple-play service subscriptions in these markets. Many are suffering from the same problems DT suffered from. And Pyramid doesn't expect a surge in customers for for another one to two years when operators offer a better selection of handsets.
To read more about DT's FMC failure:
- check out this Light Reading article [2]
Links:
[1] http://www.fiercewifi.com/story/trend-wimax-landscape-comes-into-view/2006-01-11
[2] http://www.lightreading.com/document.asp?doc_id=119230