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Should Mobile VoIP Face Regulation?

TMCnews Featured Article


February 03, 2015

Should Mobile VoIP Face Regulation?

By Susan J. Campbell, TMCnet Contributing Editor


The Facebook (News - Alert) Messenger app appears to be frustrated with me. I was reluctant to even activate the app in the first place, but there are some connections who only use private Facebook messages to communicate. As a result, I caved, but I wouldn’t allow the app to push messages to me – I already get text messages that way and didn’t want another distraction.


Apparently, the Messenger app doesn’t like that I have that setting and each time I click the little icon, it instructs me to enable this feature and where to go to do so. Yes, I realize this makes me a much better advertising target for Facebook and its apps, which is one of the reasons I keep ignoring the instructions.

Chances are, there are a few mobile providers who likely feel the same way. They’ve seen messaging apps continue to eat away at their voice call earnings potential, which is a key reason why they blocked things like mobile VoIP in the past. When leveraged appropriately, however, there are some messaging providers who promise that their apps may actually open up a new and profitable revenue stream for telecoms.

Hike messenger is one provider making the claim, according to a post in Silico India. The service is a joint venture between Japan’s Softbank Corp and Bharti Enterprises and is run by Kavin Mittal, the son of Sunil Mittal, a telecom czar. The Bharti group runs Bharti Airtel (News - Alert), India’s top mobile provider and traditionally one of the most critical of mobile VoIP and other services.

The opportunity for these providers is in their data packs, according to the younger Mittal. Voice minutes may be cannibalized, but subscribers are buying data packs, which represent a new and fat revenue stream. Mittal sees this as a win-win for the long-term. Telecom regulators are demanding that the likes of Hike and other messenger apps that leverage mobile VoIP should be regulated.

In fact, Bharti Airtel (News - Alert) recently tried to charge extra for voice calls that were made using free applications. An immediate outcry on social media forced the telecom to reverse its proposal and demonstrates the position of the target market – they are using these apps and don’t want to see the rendered less valuable when pricing is attached to them.

The same kind of frustration happened when text messaging first came on the scene. Revenue opportunities were then realized when users could be charged for texting. The pricing models shifted and changed with the market and those able to deliver on demand claimed market dominance. Will the same happen in mobile VoIP?

The reality is that consumers have already grown accustomed to these apps and will continue to demand free calling. They will still pay for data packs, expanded capabilities and the latest phones, however. Telecom providers will do well to pay more attention to their base and deliver on these demands. That is what will drive revenue, not charging for what subscribers expect to get for free.

As for me and Messenger, I think I’ll have to keep ignoring the instructions. 




Edited by Stefania Viscusi







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