The telco may still be alive and well, but its health is in question. Many believe that mobile VoIP will eat up what’s left of voice revenue potential for the telco, a loss that Juniper Research (News - Alert) suggests will hit $5 billion by 2015. Will business VoIP providers need to focus on the mobile opportunity to stay in business?
The reality is that mobile VoIP has been considerably disruptive for telcos as it enables users to send and receive phone calls via the Internet on any mobile device. As a result, they can avoid the cellular network completely. The caller therefore doesn’t use any minutes or pay for any long distance fees, taking away the potential for telco revenues.
One interesting thing about the telecommunications space, however, is that disruptive technology rarely causes a standstill in the industry. In other words, telcos are not awaiting a slow death as consumers and professionals adopt the mobile VoIP approach to staying connected. While voice revenue may be declining, it doesn’t mean the telco is out for the count. It simply means it needs to turn its attention to VoIP and how they can get a piece of the mobile pie.
All metaphors aside, let’s not forget that mobile VoIP is not a new concept. In fact, as soon as mobile devices could leverage local Wi-Fi connections, Skype (News - Alert) was readily available. Carriers did make attempts to block access at first, but what the consumer wants, the consumer gets. Back then, the biggest obstacle to ditching the cellular plan five years ago was the lack of quality and support once the call left the 2G network.
But as broadband advances and apps continue to evolve to support the mobile professional, a lack of quality is no longer the rule, but rather the exception. Carriers now have to step up their game to compete with the mobile VoIP connection. For the standard user, however, the availability mobile VoIP apps may not be enough to break old habits.
This is where the opportunity exists for the telco. Humans are creatures of habit, and the easiest calling platform you put at our fingertips is likely to be used to start each and every conversation. Yes, mobile VoIP providers will tout their lower cost options, but they are more complicated to use than the native dial pad we’ve used hundreds of times.
Yes, we’re lazy, and that gives telcos an opportunity to capitalize on our habits. Business VoIP providers just need to capitalize on this reality to secure their leadership in the market, expanding the same VoIP technology users enjoy in the office to their mobile devices. Pricing and support does have to be competitive, but as long as it makes the service easy to use, we’re likely to stay on board.
Edited by Blaise McNamee