A good article in ZDNet UK explains that while price is the main attraction for Europeans, Americans are interested in wireless VoIP because it helps them cope with patchy GSM coverage, says one vendor.

There is a transatlantic split over attitudes to wireless VoIP services, according to one Dublin-based VoIP operator which believes that Europeans and Americans are both keen, but for different reasons.

Ross Brennan, chief executive of wireless VoIP specialist Cicero Networks, said on Wednesday that in Europe people are being attracted to wireless VoIP because it lets them save money compared to making a standard mobile phone call. In America, though, the appeal is that wireless VoIP can let users make calls in places where GSM coverage is patchy but a Wi-Fi network is available.

"In the US it's not about routing voice on a more cost-effective basis but from a coverage perspective. But for a European, it's all about price and not having to pay the fees," said Brennan, speaking at the Wireless LAN Event in London.

Wireless VoIP enables people to make phone calls across the Internet using a Wi-Fi connection. While the technology is still in its infancy, some people are now running VoIP applications, such as Skype, on smartphones. BT is developing a converged mobile device called the Bluephone, which it hopes will eventually handle calls over Wi-Fi, GSM and Bluetooth.

Still, the price in Europe is a factor. According to Red Nova, AOL is starting its Internet telephone service in Germany, where it has 2.8 million customers, including 750,000 who have broadband connections. AOL is offering its Internet calling service and a necessary converter box for the telephone free to existing customers. Internet calls made to other AOL clients are free.

For 20, or $25.38, a month, AOL customers can make unlimited calls to any fixed-line telephone in Germany. AOL customers who do not subscribe to this monthly service can pay 1.50 per minute for calls to fixed-line telephones. Skype has more than 1.1 million customers for its SkypeOut service, which allows users to call fixed- line and mobile phones for a fee.

Brennan argued that people shouldn't necessarily get VoIP services for free just because it can be cheaper for an operator to offer a VoIP call than a regular phone call.

"[VoIP] is a technology it's not something that should be associated with free telephony. There're lots of options and savings to be made for the operator and the subscriber. What you need is to be able to do is access the hotspot and not pay anything until you receive a call."

Brennan also said that established operators are responding to the challenge posed by companies offering wireless VoIP services.

"Voice operators seem to be the ones who are least excited about moving voice away from their networks they acknowledge that wireless is the future and they are terrified," said Brennan. "But the fixed line operators are starting to strike back. They need to do something in the mobility space."

"Over time, Internet telephony without a doubt is going to replace conventional telephony," said Kai Petzke, founder and general manager of teltarif.de, a Berlin online researcher that compares telephone tariffs. "Microsoft and AOL are well-known brands that people are more likely to trust."

David Sims is contributing editor and CRM Alert columnist for TMCnet.