Economics of Cellular and Wireline Voice Convergence

Using voice convergence case studies, this paper presents a business modeling analysis to evaluate: a) the end-user value proposition for new Cellular/Wireline service, b) Solution alternatives for providing Cellular/WiFi services, and c) the wireless operator's value proposition for providing Cellular/Wireline services. We have developed models to understand and analyze the pricing and market demand for the converged services and the end-user value proposition. The results of the end-user modeling and market demand analysis is incorporated in, and drives, the operator business model. There are primarily two solution alternatives for providing Cellular/WiFi service, a) IMS based soltuion or b) UMA solution. The case study shows that the IMS based solution has significant financial advantages over UMA solution, taking into consideration evolution to 3G and extensibility of the IMS solution to support multiple applications. Results of the business case analysis show that Cellular/Wireline Service has an attractive value proposition for both the end-user and operator. The sensitivities of key parameters and their impact are highlighted to provide a clear understanding of the critical factors driving the business case.