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Mobile VoIP Shows Significant Growth Opportunities

TMCnews Featured Article


June 15, 2011

Mobile VoIP Shows Significant Growth Opportunities

By Susan J. Campbell, TMCnet Contributing Editor



Voice over Internet Protocol (VoIP) introduced a whole new way to carry voice communications across the network. While first iterations where a bit choppy, security iffy and overall quality less than desirable, the market today has emerged stronger and the solutions available today are designed to enable even the most secure and complicated of communications.

In fact, according to this release, the global fixed line VoIP market is set to generate $40 billion a year by 2015. VoIP is taking more of the market share and mobile VoIP is offering even greater capabilities and opportunities. Data shared by Point Topic shows that the global growth in VoIP during 2010 was 12.6 percent and there is plenty of opportunity for this to continue throughout the world.

“The growth of VoIP has been bumpy but shows signs of acceleration,” said John Bosnell, senior analyst at Point Topic, in a statement. “VoIP has all the hallmarks of a classic substitution commodity. This is where customers look at the service that is delivered by a new product and decide that it meets, or exceeds, the service they are currently receiving and when it is appropriately priced they will switch from one to the other.”

Consumers are increasingly turning to end-to-end IP services over the standard telephone system. The former provides voice services at attractive costs, while also adding other capabilities, including mobile VoIP. This is a significant move in the right direction given the increase in mobility for consumers and business users alike.

“France has been something of a test bed for VoIP. Driven by an active supplier base that has made VoIP available to a large percentage of the population over the last decade, the providers have been rewarded with significant take-up,” added Bosnell.

As a result, there has been a rapid shift in France away from the PSTN. By 2010, more than 50 percent of telephony traffic in France was originating on fixed networks and started on a VoIP phone. The increased move to mobile VoIP will further drive this adoption and penetration of VoIP in the global market.

The extended opportunity afforded by mobile VoIP is growing, given the demand for Internet telephony and services like Skype (News - Alert). Bosnell highlighted that it is a highly fragmented market that is generally served by companies who do not or will not report regular statistics and revenues. Skype, however, continues to serve as the market leader in mobile VoIP and does report some of its numbers.

This company alone has 150 million regular callers. The associated revenue, however, is much lower. By the end of 2010, only 9 million users were paying $8 million a month. This has been an ongoing problem for Skype – generating revenue from a service that is mostly free.

“If Skype continues to grow as it has been and manages to keep its ARPU at the current level then it will be generating in the region of $2 billion a year by the start of 2016. If you work hard and manage to marry your internet telephony service with a major mobile device manufacturer and solve any number of technical and regulatory issues, the market could really explode,” concluded Bosnell.

Once leaders in the mobile VoIP space determine the best revenue model, the sky is the limit.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO West 2011, taking place Sept. 13-15, 2011, in Austin, Texas. ITEXPO (News - Alert) offers an educational program to help corporate decision makers select the right IP-based voice, video, fax and unified communications solutions to improve their operations. It's also where service providers learn how to profitably roll out the services their subscribers are clamoring for – and where resellers can learn about new growth opportunities. To register, click here.


Susan J. Campbell is a contributing editor for TMCnet and has also written for eastbiz.com. To read more of Susan’s articles, please visit her columnist page.

Edited by Jennifer Russell







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