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The Growing Demand for Mobile VoIP and Opportunities to Profit

TMCnews Featured Article


September 27, 2013

The Growing Demand for Mobile VoIP and Opportunities to Profit

By Susan J. Campbell, TMCnet Contributing Editor


Mobility in the global marketplace has created significant opportunities for both users and carriers. The individual on the go has access to the communication tools to stay connected and mobile operators can drive critical revenue streams. As applications and processes continue to evolve toward mobility, opportunities continue to emerge.


One area that is both an opportunity and a challenge is that of mobile VoIP. Consumers love it as it provides an opportunity to stay connected without tapping into wireless minutes. This is especially important when out of network or overseas. The mobile operator finds it a challenge, at least initially, as this channel drains revenue.

For those industry operators who have embraced the demand, however, they are enjoying the benefits of the growing need for Internet access and the revenues associated with this channel. And it’s not just enough to make access possible, users want robust access. This demand is outweighing the demand for wired voice telephony and is expected to increase 1.6 percent to reach $130.3 billion in 2013.

Jesse Chiang, IBISWorld Industry Analyst shared that wired telecommunications carriers have already begun to deploy optical fiber networks that will provide much faster speeds and larger bandwidth capacity as compared with cable or wireless networks in an effort to effectively compete with substitute provider technologies.

For instance, giants like AT&T and Verizon (News - Alert) offer video services through an Internet protocol television network. Such services tend to be offered through bundled services with voice telephony and Internet access. Adoption rates are increasing as carriers expand their network footprint. It also helps that fiber-optic networks are developing, helping to mitigate declining demand and revenue for telephony services available via wired options.

One key element that is obvious in the industry is that major telecommunications players are diversified across a number of different sectors of communications, including video services and Internet access. As a result, it’s likely they will continue to focus on and expand services that tend to be in higher demand, such as high-speed Internet access.

Throughout the industry as a whole, the demand for mobile VoIP continues to increase, especially as the number of smartphones in the marketplace continues to grow. Numbers are reaching record highs and predictions show 1 billion users by the end of 2013. As companies adopt Bring Your Own Device (BYOD) policies and embrace new opportunities to go mobile, the demand for access whether towers can reach or not is critical.

This is an area where VoIP is filling the gap and creating new opportunities. Those wireless carriers able to tap into revenue-generating partnerships will benefit from this shift.




Edited by Stefania Viscusi







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