The mobile voice-over-IP (VoIP) market is expected to grow by leaps and bounds within the next eight years. Telecommunications market research firm Grand View Research released a report this past week that shows the market has the potential to scale at a compound annual growth rate of 20 percent between 2016 and 2024.
Grand View Research’s report, “Mobile VoIP Market Analysis By Services (Video And Voice Call, Video Conferencing, Instant Messaging), By Platform (Android (News - Alert) OS, iOS, Windows OS), And Segment Forecasts To 2024,” shows that the market, if it reaches that full potential, could be worth as much as $145.76 billion by the end of the forecast period. The increase in revenue generation is expected to ride on the benefits of prioritizing data services over the separate voice and data split operators now seen in the market.
The consolidation of data-based voice services on mobile devices relies on high wireless speeds. Therefore, this expected growth will only become a reality if the 4G and LTE (News - Alert) mobile protocols find a place in the majority of both urban and rural areas where consumers live across the globe. Operators are expanding their networks to include more 4G coverage, so it makes sense that, as those projects move forward, the mobile VoIP market will have a greater chance of gaining a foothold.
On the other hand, the direct link between fast, reliable mobile data and the use of mobile VoIP shows that mobile VoIP could be limited by consumer investment in data plans, which are often more expensive than voice and texting in traditional wireless carrier packages. Mobile VoIP may offer a convenience of eliminating traditional voice service, but it also must exist alongside the high cost of data itself. Consumers will only be willing to make the switch to data-based calling if their phone plans remain steady in cost or else fall from their present rates.
Operators will also have their hands full in making sure that network speeds are robust enough to carry this new glut of data users. Before this switch – the present day – data plans will not have carried much of the voice network. After the switch, they will be loaded down with an additional set of responsibilities. A lot of factors come into play beyond a simple operator and consumer desire to use data for all things mobile.
If it succeeds, the payoff will be great. Many operators could see a change in the efficiency of their networks because they will be able to handle more of the mobile market with packet-switched networks that could easily fit within the coming global transition to software-defined networking. Operators could see significant cost savings from the efficiency of their networks and may also pass along more reliable service to their customers. More than any other region, the Asia Pacific region is expected to witness the fastest growth in mobile VoIP usage in the coming years, especially from the rise of small and midsize businesses in that area. Large corporations such as Facebook (News - Alert) and Microsoft are also expected to play a role in the fierce competition that will fight for the increase in funds flowing through this market.
Edited by Alicia Young