Boston, MA - June 27, 2005 - According to the latest Strategy Analytics report, "Cellular Beats Convergence in In-Building Voice Battleground," the US will lead adoption of fixed mobile convergence (FMC), as the rest of the world sees FMC play second fiddle to cellular-only substitution. Seven percent of voice telephony users will use a FMC product in the US by 2010, compared with only two percent outside the US.

"North America will buck the global trend, where cellular based solutions rather than converged fixed-mobile voice services will dominate. Advanced penetration of WiFi networks, a robust cellphone replacement market, spotty in-building cellular coverage and a dynamic broadband and cable industry will combine to keep cellular-only users at bay in the US," comments David Kerr, Vice President, Strategy Analytics' Global Wireless Practice. "Players like Time Warner, Comcast and Cox have most to gain in terms of revenue opportunities, with early FMC moves by BellSouth a clear indication that they need to protect their entrenched positions in the fixed and mobile voice markets."

"This will not be a market driven by pent up consumer demand, it will be molded by friction between wireless and wireline operators, between cable MSOs, broadband providers and triple-play telcos," adds Phil Kendall, Director of the Strategy Analytics Wireless Network Strategies service. "Users may be looking for a single handset which works at home, in the office and on the move - but that handset already exists in the cellphone. FMC is more about giving wireline, cable and broadband providers the tools to address the in-building mobile opportunity through the use of their existing assets."