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Mobile VoIP Stakes its Claim in a Growing Market

July 09, 2014

By Susan J. Campbell, TMCnet Contributing Editor

Companies seeking their fortunes in the telecommunications space may have landed on a prime opportunity. According to reports from the Telecommunications Industry Association (News - Alert), global spending in this space increased 5 percent to reach $5.1 trillion in 2013. While this increase is lower than the 7 percent reached in 2012, it still demonstrates strong opportunity.

At present, the world’s largest telecom market is in the Asia Pacific region, claiming $1.7 trillion in 2013. The U.S. is a strong second at $1.25 trillion, with Europe close behind at $1.22 trillion. While the growth is slowing, it merely reflects the decline in landline spending, offset by the moderate growth in wireless spending.

In the U.S., for instance, 2013 growth showed improvement to 6.6 percent from 6.3 percent in 2012. This was the largest increase by far in the last four years and is considered the turning point in a long-term pattern of slower growth in the U.S. market. As mobile VoIP is gaining more attention throughout the global marketplace, this trend is also likely to impact adoption and revenue.

Among providers in the wireless service market in the U.S. during 2014, spending is expected to reach $36.3 billion in terms of network infrastructure and equipment. This spending represents an increase of 8 percent over 2013. The majority of necessary network upgrades have already been completed by AT&T and Verizon Communications, allowing the companies to start transmitting on 4G LTE technology.

T-Mobile and Sprint (News - Alert) are all playing catch-up mode to try and get their networks to the point that they can compete effectively without losing too much share of the market. The ability to roll out comparable services in a timely manner will be key, as well as support for demanded solutions, such as mobile VoIP, will be key to ongoing success.

For subscribers, this activity demonstrates the market is alive and well and also points to important trends that are impacting available services. For instance, AT&T and Verizon (News - Alert) have a vested interest in supporting 4G LTE as quickly as possible, protecting their lion’s share of the market. With the growing use of VoIP over these networks, the quality of the experience is taking on whole new meaning, setting a new standard for meeting consumer expectations. 

Edited by Stefania Viscusi

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