Article: Trend toward FMS gains momentum.(FORUM)(fixed-to-mobile substitution)(Nippon Telephone and Telegraph Corp.)(Pacific Century CyberWorks Ltd.)(Telstra Corporation Ltd.)

The core voice revenues of fixed-line operators are in decline. Telekom Malaysia, Telstra, PCCW and NTT are just a few of the hardest hit operators in the Asia-Pacific region. One of the main reasons is fixed-to-mobile substitution (FMS). In developed markets traffic is migrating to mobile networks (call FMS), and a small number of users are cutting the cord--going mobile completely (access FMS). Another type of FMS is occurring in developing markets as new users are going straight to mobile.

Ovum recently surveyed FMS in 14 markets within Asia Pacific and found that both access and call substitution trends are accelerating. Call substitution was the strongest ...

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