Ever since it first emerged, voice over Internet protocol (VoIP) service has represented a fundamental game-changer in the way we make voice contact. Now, VoIP also offers a variety of services not readily available through many standard voice services, and it's this growth, among other things, that's leading to expectations of big growth. How big? Wise Guy Reports suggests that the compound annual growth rate (CAGR) of mobile VoIP worldwide could be as high as 28.47 percent through 2020.
That's a lot of growth, and part of what's driving it is the sheer versatility involved with VoIP connectivity. Able to work over mobile networks as well as fixed, with all the different subclasses found therein, VoIP not only offers up options for low-cost calling but it also introduces several new tools that either weren't available at all over a standard telephone line or only available at great cost. Cost savings are also a huge part of the picture, as long distance and international calling costs fall through the floor as compared to the standard line.
It's actually reached a point where so many users are turning to mobile VoIP via over-the-top (OTT) apps and the like that it's posing a threat to voice revenues for mobile providers. Though there are some disadvantages associated with VoIP access—poor voice quality and an increased frequency of dropped calls are part of it—the flexibility and cost savings are sufficiently substantial to drive steadily growing interest.
Naturally, the report doesn't stop there. It continues on to detail the biggest names in the field, prominent vendors, market drivers and challenges, trends and similar matters. What we know so far, however, is worth paying close attention to. The old saying about getting what one pays for is a cliché for a reason, sufficiently valid after all these years to be worth quoting and over-quoting. Users are willing to accept lower-quality service if it comes with a huge price savings. After all, consider a response to two deals: one offers crystal-clear calling to Paris for $0.50 a minute, and the other offers occasional dropped calls and a few crackles in the line to Paris for $0.10 a minute. Most would likely go with the 80 percent discount. The cost of failure is minor—having to call someone back or repeat a line—and the value substantial.
Thus it's not surprising to see VoIP on the rise, and we'll likely continue to see such rise in the future as technology and service improves. That too could have some far-reaching impacts, and if more of our calling is Internet-based, we could see further strain on an already-stressed network. With 5G approaching, and fiber buildouts potentially continuing, we might be ready for a big new draw on the network, but it depends on further construction from Internet service providers (ISPs), who haven't exactly been willing to build in the past.
Edited by Alicia Young