Speaking at an Alcatel conference in Sydney Monday, Kennedy said the world falls into three different categories of readiness -- those set to go, those not ready and those that are unsuitable including Thailand, Philippines, Malaysia, Indonesia and China.

He said in FMC-ready markets like Hong Kong, Japan, Korea, Taiwan and Singapore there are high levels of fixed and broadband penetration.

"Customers understand the benefits of fixed-mobile integration," he said.

In Australia and New Zealand low broadband penetration is reducing the scope for IP networking.

"Without the opportunity for full IP service, it is not as attractive," he said.