The substitution of mobile services for fixed line is established and growing in Australia, according to research released today by the Australian Communications and Media Authority. However the prospects for convergence of fixed-line and mobile services into a single seamless service - apparent in some overseas markets - are low in the short term.

The report, Fixed-Mobile Convergence and Fixed-Mobile Substitution in Australia, examines these two trends in Australia and the implications for the communications environment.

‘The communications sector continues to evolve as new technologies and services are introduced, formerly solid boundaries begin to blur and customer behaviour changes,’ said Chris Chapman, ACMA Chairman. ‘The advent of fixed-mobile convergence services and the increasing trend of fixed-mobile substitution is part of the changing environment.’

The development of fixed-mobile convergence and fixed-mobile substitution is being influenced by a variety of factors, including the increasing rate of fixed-line access decline, the mobile price premium, consumer attitudes to fixed and mobile services and the structure of the mobile industry.

Fixed-mobile convergence and fixed-mobile substitution development have a number of implications for the Australian communications environment. Most importantly for ACMA, as the technological and commercial boundaries between fixed and mobile services become more fluid over time, the regulatory delineations between the two will become increasingly problematic.

‘As with the development of voice over internet protocol services, the changing relationship between fixed and mobile services will put pressure on core legislative concepts and definitions, highlighting strained or ‘broken concepts’. Ultimately, the ‘elasticity’ of these concepts will expire at which time they will no longer function efficiently or effectively in a converged environment,’ said Mr Chapman.

In addition, as more traffic moves onto mobile networks, new operators and services will emerge, more operators will be able to offer full voice and data services and products and services offered by operators are likely to be increasingly complex.

Fixed-Mobile Convergence and Fixed-Mobile Substitution in Australia is available on ACMA’s website.