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Report: Adoption of Mobile VoIP by Cellular Network Operators is Inevitable

TMCnews Featured Article


August 10, 2009

Report: Adoption of Mobile VoIP by Cellular Network Operators is Inevitable

By Patrick Barnard, Group Managing Editor, TMCnet


A new research report shows that the adoption of mobile VoIP by cellular network operators is inevitable – even though many of them are still resisting it.

The recent report from Unstrung Insider finds that although many carriers still fear that mobile VoIP will cannibalize their existing, traditional service -- eroding the business model they’ve held near and dear for decades -- they will ultimately have no choice but to deploy it in order to keep up with business and consumer demand for the technology and stay competitive. The biggest barrier they face is the significant cost, complexity and time involved in upgrading their networks to support mobile VoIP. And once they make this investment there remains a big question as to whether or not they can monetize it with new offerings.

 
"Mobile VoIP is no longer just a cheap telephone call," said John Blau, research analyst with Unstrung Insider and author of the report, in a release. "The big advantage of VoIP is its ability to integrate with other systems and stimulate further adoption."

“Although many mobile operators continue to block VoIP calls to protect their voice revenues, that strategy will not be sustainable," Blau added. "Sooner or later, mobile operators will be forced to deploy their own VoIP services, since next-generation networks such as Long Term Evolution (LTE (News - Alert)) and WiMAX are all-IP and do not support circuit voice."

According to the report, “Mobile VoIP: A Disruptive Service Goes Mainstream,” many mobile VoIP players are expanding into other applications and integrating with other systems, which in turn is stimulating further adoption. New services such as voice-enhanced IM, voice mashups, and voice plugins are being used to build communities of users.

In addition, operator resistance to mobile VoIP is gradually softening, as major incumbents such as T-Mobile (News - Alert) drop their bans.
 
The report also finds that new flash technology enabling peer-to-peer voice calls without plugins or soft clients could be an industry game-changer.
 
It also reveals that venture capitalists remain interested in mobile VoIP, because they view it as being a disruptive technology that is still in its infancy.

The report also explores the issue of wireless security and concludes the WPA2 standard works sufficiently for securing mobile VoIP calls. This in turn should help drive further adoption among business users.

The report analyzes the latest developments and trends driving mobile VoIP applications and services and examines the technology issues that have confronted mobile VoIP upstarts – as well as the solutions that they have developed to overcome them. It also explores the commercial and technical challenges and opportunities facing startups and incumbent mobile phone operators and handset makers.

“Mobile VoIP: A Disruptive Service Goes Mainstream” profiles 12 mobile VoIP providers, including their strategies for marketing mobile VoIP and related services to the upcoming generations.

Follow ITEXPO (News - Alert) on Twitter: twitter.com/itexpo

Patrick Barnard is a contributing writer for TMCnet. To read more of Patrick’s articles, please visit his columnist page.

Edited by Patrick Barnard