Bharti Airtel to introduce dual-use phone by year-end

Bharti Airtel will introduce Fixed Mobile Convergence (FMC) service by the end of the year.

The launch will lower phone bills and enable customers to use a single phone with a common number for mobile and fixed-line calls.

FMC technology, which has been experimentally launched in several European countries, will allow customers to seamlessly use a dual-mode mobile handset to make calls on a GSM network on the move or a fixed line broadband network in the office or home.

Bharti is part of the global Fixed Mobile Convergence Alliance (FMCA) that is pushing through the adoption of the new technology. Members of the FMCA include British Telecom, Maxis, China Telecom, Motorola, AT&T and Huawei.

The company has started pilot runs in offices and executives say they are in discussion with the solution providers to understand the capabilities of the FMC offering to arrive at an optimum value proposition for customers.

A customer needs a dual-mode phone,worth Rs 10,000, that is compatible with GSM networks and also Wi-Fi enabled plus broadband connectivity through a fixed line at the office or home.

When the user is on the move, the phone connects through the GSM network. Once at home or at the office, the phone works through the fixed-line backbone.

This translates into significant savings since fixed-line local call rates are half the cost of a mobile call. Also, industry experts say that nearly 40 per cent of the calls made on a mobile phone are undertaken within the office.

The technology also benefits mobile operators since transferring call traffic to fixed lines reduces pressures on spectrum (radio frequencies that enable wireless communication), of which there is a major shortage in the country.

For fixed line operators, who have seen their subscribers and average revenue per user shrink, this is an innovative way to retain and acquire new subscribers.

Bharti is looking at various initiatives to promote the new technology which would include offering wi-fi routers for broadband customers and creating wi-fi hot-spots and zones in strategic locations, like airports and malls for customers to test the technology.

FMC Demystified

Enables use of a single phone with a common number for mobile and fixed-line calls.

Dual-mode phone required (cost Rs 10,000)

GSM Netwok and Wi-Fi modes used

Reduces pressure on spectrum

Saves call costs as fixed local call charges low

Fixed-line operators may benefit