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Wireless VoIP threat to mobile carrier's profits

August 23, 2005

Just as VoIP increased competition and lowered calling rates for wireline local and long distance services, so to will Wireless VoIP (wVoIP) bring about similar changes to mobile phone networks and services. The main drivers behind this change are the rise of VoIP on landline networks, new technologies, and the fixed-mobile convergence strategies being rolled out by wireline players. These are some of the key findings from a new research report: "Wireless VoIP: What Threats to Mobile Operators?" published by IDATE and now available from Alexander Resources, a research, consulting and education firm specializing in wireless communications.

The new report provides a comprehensive analysis of wVoIP technological challenges, networks, handsets, software solutions, wVoIP commercial deployments, trials and growth scenarios for 2005-2010.

Additional conclusions from this report include:

-- Mobile phone carriers are looking to evolved 3G architectures (UMTS release 6, with an IMS architecture - based on SIP - and CDMA 2000 EV-DO Rev. A) to combat the growing wVoIP threat. However lengthy deployments of these new technologies may put mobile phone carriers at risk to competitors. Under this scenario, a significant portion of the market could be captured by wireline telcos and MVNOs, particularly with their combined broadband/Wi-Fi/cellular packages.

-- Mobile operators will respond to the increased popularity of wVoIP by offering new lower priced rate plans with unlimited calling for a fixed monthly amount.

-- The growing use of IP on cellular, Wi-Fi and WiMAX networks enables not only voice calls over IP but several new services as well. Most notable among these new services are IM and presence (possibly combined with global positioning), videophony and video phone conferencing. And, in the business world, VoIP can be integrated into collaborative work software suites.

 

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