TMCnews Featured Article
August 22, 2011
Service Provider Mobile VoIP Expected to Grow
By Susan J. Campbell, TMCnet Contributing Editor
The use of a data connection to drive voice communications is not necessarily new, but it is a growing concept among mobile users. And, according to Juniper Research (News - Alert), mobile VoIP use is expected to reach roughly 130 million people around the world by 2016.
A recent ihotdesk report highlighted some of the advancements in the global industry that are helping to drive this increase. A number of key players in the service provider space have made marked improvements to their products in the last 18 months.
At the same time, there has also been an increase in mobile phones fitted with front-facing cameras to allow for easy video conferencing. This communication channel depends on Voice over Internet Protocol (VoIP) and as its popularity continues to increase, so will the demand for mobile VoIP capabilities.
According to Juniper, apps are also playing a part in the growing demand for mobile VoIP.
Users can easily download applications that extend the capabilities currently found on their smartphones. As applications are increasingly relying on data connections to deliver personalized services, the integration of voice and data makes more sense.
The challenge of mobile VoIP for service providers, however, is the lack of a standardized approach to delivery and the absence of a clear route to monetizing new IP-based mobile VoIP and video calling services. One associate analyst at Juniper Research, Anthony Cox (News - Alert), noted that this challenge could inhibit the growth of mobile video calling, at least for the short term.
While service providers figure out a way to overcome this obstacle, Juniper Research is predicting that the revenue raised through the circuit switched voice market could continue to fall over the next five years.
In other mobile VoIP news, TMCnet recently reported that research by Wireless 20/20 (News - Alert) suggests that mobile VoIP can increase the average revenue per user (ARPU) and return on investment (ROI) for 4G operators when compared to only offering data services.
Haig Sarkissian (News - Alert), principal Consultant of Wireless 20/20 shared that the launch of 4G mobile VoIP services will help to push a 25-50 percent increase in ARPU, a 10 percent increase in the Internal Rate of Return (IRR) and an increase of five to 10 times in Net Present Value versus a data-only service strategy.
Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO West 2011, taking place Sept. 13-15, 2011, in Austin, Texas. ITEXPO (News - Alert) offers an educational program to help corporate decision makers select the right IP-based voice, video, fax and unified communications solutions to improve their operations. It's also where service providers learn how to profitably roll out the services their subscribers are clamoring for – and where resellers can learn about new growth opportunities. To register, click here.
Susan J. Campbell is a contributing editor for TMCnet and has also written for eastbiz.com. To read more of Susan’s articles, please visit her columnist page.
Edited by Stefania Viscusi
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