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Cellphone VoIP revenue to outstrip fixed line VoIP, thanks to premium prices
Stuart Corner
Tuesday, 19 September 2006 11:20
Analysys estimates that cellular VoIP services will generate revenues of $US18.6 billion in the USA and $US7.3 billion in Western Europe, compared with fixed VoIP revenues of $US11.9 billion in the USA and $US6.9 billion in Western Europe. It says these figures will be achieved with cellular VoIP services accounting for 28 percent of all fixed and mobile voice minutes in the USA and 23 percent in Western Europe.
Analysys suggests that cellular mobile operators will attempt to position cellular VoIP as a premium voice service, emphasising quality and a range of value added features (such as presence information, instant messaging and multimedia sharing) in order to resist the erosion of voice prices.
"Cellular VoIP will dominate the mix of wireless VoIP services in developed markets, with VoIP over wireless local area networks (VoWLAN) and VoIP over broadband wireless access (BWA) technologies (such as WiMAX) relegated to niche roles," according to Analysys.
The research firm suggest that the upgrade of CDMA2000 1x EV-DO networks to Revision A from 2007 and the upgrade of W-CDMA networks to 3G Long Term Evolution (LTE) from 2010 will present 'a compelling case for mobile operators to migrate their voice services from circuit-switched voice to VoIP."
"The capacity, cost per megabyte and quality of service of existing 3G cellular technologies - including EV-DO Revision 0 on CDMA2000 networks and High Speed Packet Access (HSPA) on W-CDMA networks - are not yet adequate to support a significant move to wireless VoIP services," says the report's co-author, Mark Heath. "However, EV-DO Revision A and 3G LTE will respectively create the cost benefits and new service opportunities that trigger the migration to mass market cellular VoIP."
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