Can Consumer VoIP Be Wrapped in App Store Coolness?

What's the difference in buzz between a long-distance calling card and mobile VoIP? Likewise, what is the 'coolness' differential between a landline phone service and a mobile app store?

 

Potentially, it could make all the difference in the world for at least some providers of consumer VoIP services. Several years into the U.S. transition from legacy voice to IP telephony, a couple conclusions can be drawn. Independent providers other than cable companies have not fared especially well.

 

Most of the 'landline replacement' market space is occupied by cable providers. But where has usage taken off? Volume is highest among providers of international long distance services, especially Skype (News - Alert). With the exception of the landline replacement segment dominated by cable TV providers, most of the usage has come in the 'over the top' application segment of the market.

 

With the growth of downloadable apps from mobile app stores, the distribution channels are different than they were several years ago. Where independent providers basically sold 'over the top' of a fixed broadband connection, they now have the option of creating mobile apps for smartphones.

 

Oddly enough, this is a bit of a step in the direction of displacing calling cards or international 'dial around' rather than a voice 'line.' On the other hand, because the apps are distributed through app stores, and used by smartphones, providers might be able to take an unglamorous, if useful service, and clothe it in 'cool' mobile app store and mobile smartphone garb.

 

Still, international long distance is a tough way to make a living. Perhaps the only tougher trick is to make a living selling consumer VoIP as a landline replacement service, though.

 

Vonage (News - Alert) World, for example, provides unlimited calls from landlines to 60 countries for $25 a month.

 

Vonage World Mobile that allows users to make unlimited international calls on their mobile phones, including  the Apple iPhone and iPod Touch and Research In Motion's BlackBerry (News - Alert). One suspects an Android app will not be long in forthcoming.

 

So, one way to look at the business plan is that Vonage could position itself as a discount international long distance calling specialist, using either mobile, or fixed connections, rather than as a landline replacement, company, which was its heritage.

 

Vonage apparently is working on text message and multimedia support as well, making Vonage an over-the-top replacement for several mobility services.

 

There are no guarantees in the IP communications business, but the shift potentially is profound. Perhaps Vonage and others can wrap a more-glamorous 'mobile app' aura around a service that essentially is a replacement (a better replacement, most might argue) for use of an international calling card.