This report identifies three types of fixed-mobile convergence: service bundling, dualmode services and network convergence. As is revealed, fixed-mobile substitution (FMS) is in the early stages in Australia, with activities limited to service bundling. Consumers of access fixed mobile convergence (FMC) only use a mobile service and have no fixed-line access. FMS users still retain their fixed-line access. Usage FMS has been clearly evident in the Australian communications sector, while access to FMS remains limited. Key developments in these areas are outlined in this report, as well as developments in the mobile termination and mobile pricing areas.