Abstract
There is a lot of news and rumour in the mobile market with regard to Voice
Over Internet Protocol (VoIP). VoIP has already established itself as a
serious competitor for fixed line service providers, where it has taken a
significant market share - both providers such as Skype which provide free
peer-to-peer calls, and through pseudo telephone companies, such as Vonage,
using VoIP to reduce their own costs which they then pass on to the user. If
you can route fixed line phone calls over the Internet more cheaply than you
can over the PSTN, why not do the same for mobile? Part of the reason is the
capability of the network and the other is the data pricing models in use by
many MNOs mean that even a "free" call can be much more expensive than one
carried through a circuit switched network.
There are many companies and almost as many strategies seeking to resolve
these issues. 3G networks have the capability, but so do WiFi hotspots, which
might deliver lower costs than the 3G network. Some companies are building
large, isolated communities while others are connecting multiple small
communities together. Will MNOs be by-passed by VoIP or will it represent a
great opportunity to consolidate their position as the natural partner for
mobile devices and services? Must they inevitably experience a considerable
drop in revenue as customers defect to VoIP services outside their control?
This report examines the mobile market opportunity for VoIP and the levels of
activity taking place seeking to exploit it. A scenario is built to estimate
just how much revenue is at risk and conclusions and recommendations are drawn
from the research results, so that MNOs can maximise their advantages and
minimise their exposure to risk in this uncertain technology area.
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