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December 05, 2011
VoIP Gateways Projected to Grow with Uptick in Broadband Hotspots

By Susan J. Campbell, TMCnet Contributing Editor

The demand for the low cost benefits found in Voice over Internet Protocol (VoIP) solutions continues to grow, creating new opportunities for vendors in this space, as well as projected growth in the market as a whole. According to recent data from ABI Research (News - Alert) regarding VoIP gateways, there should soon be an uptick in the number of broadband hotspots available in the U.S.

As captured in this Telappliant page, this increase will reduce cost and complexity for interested companies. While carriers are being pressured by customers to improve Internet services and increase bandwidth, there is a renewed focus on investments toward hotspot routers that will meet the demands of the customers while saving carriers the expense of adding costly network infrastructure as they embrace VoIP gateways.

This focus is not new. There was a drive in this direction a few years ago, but the router technology at that time made the reality of the idea less than feasible. Basically, the products themselves were complex and hard to set up. They also were geared toward IT-managed remote workgroup environments. However, armed with better equipment, the routers available today are able to keep up with the needs of the growing number of mobile users.

So far this year in U.S. alone, more than 7 million mobile router-associated products have been purchased costing more than $1 billion, according to data from ABI Research. Each of these routers being installed can assist several devices on a Wi-Fi network. This mobile hotspot router system, which provides VoIP gateways, involves a standalone device that will reduce the amount of subscribers and increase the revenue per user.

Carriers are seeking to increase their number of subscribers, but in doing so, they run the risk of compromising their already-taxed services. This focus on data signaling optimization can help achieve growth without bogging down service ability.

This new expansion of VoIP gateways should allow users to connect to the Internet with their mobile devices from remote locations and make Internet-based calls as well as access Web services. This technology and the mobile VoIP gateways it provides will be of keen interest to the market in Africa, which is expected to grow rapidly.

Another report published recently by Frost & Sullivan (News - Alert) says publicly available WiFi hotspots will increase from 1.3 million to 5.8 million by the year 2015. The same report suggests that nearly 60 percent users of VoIP gateways find those services to be integral in their use of smartphones.

The growth in hotspots is expected to be highest in wide-area and local-area outdoor “hot zones.” Users should see increased VoIP gateways capabilities in places such as parks, airports, and public transportation areas.

With more hotspots and VoIP gateways available, global mobile data traffic is expected to skyrocket to 16-plus million terabytes per year within the next two years.

It is expected that by 2016, mobile hotspot routers will reach 60 million annual shipments with revenue of $5 billion-plus.

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

Edited by Juliana Kenny

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