UMA Today Magazine: Beyond Voice Page 20

Accelerating the migration of voice minutes in the home

from the fixed network to the mobile network (known as
fixed-mobile substitution, or FMS) is an opportunity for
mobile operators to generate more revenue and growth.

In the US, incumbent fixed-line providers are losing

fixed-lines and home phone services at an alarming
(if you're one of them) rate. A recent Morgan Stanley
report indicated that the fixed-line loss at the largest US
incumbents (Verizon, AT&T, Qwest, Embarq) was 7.7% in
Q1 2008 alone.

There were two reasons cited for the loss in business.

One was the migration of fixed service to mobile operators.
Clearly FMS is an opportunity where mobile providers are
successful.

The second reason subscribers say they are dropping

their incumbent fixed-line service, according to the

Morgan Stanley report, is to migrate to a lower-cost VoIP
service provider. US cable companies were the biggest
winners in this market, taking in 5.5 million new fixed-
line VoIP subscribers in the last year.

It's clear the market for fixed-line service isn't

going away any time soon. Consumers like a dedicated
home phone number. Plus many consumers prefer the
ergonomic advantages of larger cordless phones, as well
as the convenience of having phones in multiple rooms
throughout the house.

Previously, mobile operators have largely been shut out

of the market for providing fixed-line services. But new
UMA/GAN technology has made fixed-line VoIP service
a cost-effective reality for mobile providers. And mobile
operators are ready for the new challenge.

TERMINAL ADAPTORS

The New Mobile Frontier:

It's Fixed!

UMA TODAY

FALL 2008