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Frost & Sullivan: Mobile VoIP Poised to become the Principal Transport for Various Access Technologies, Says Frost & Sullivan
[May 20, 2010]

Frost & Sullivan: Mobile VoIP Poised to become the Principal Transport for Various Access Technologies, Says Frost & Sullivan


LONDON, May 20, 2010 (M2 PRESSWIRE via COMTEX) -- Mobile VoIP is no longer just hype, but has become a credible threat to traditional voice revenues. Considering, that this is only a matter of time until Internet protocol (IP) becomes the principal transport for various access technologies, an ambitious group of mobile VoIP start-up companies are creating a paradigm shift in the way users communicate with each other, with voice services moving to a true Internet era of Telco 2.0.



New analysis from Frost & Sullivan, Impact of Mobile VoIP on Next Generation Cellular Networks, finds that that at the end of 2008, approximately $605.8 million of mobile VoIP revenues were generated in North America, Europe, Asia Pacific and Latin America. This is expected to grow to $29.57 billion by 2015. The technologies covered in this research service are high-speed packet access (HSPA), third-generation long-term evolution (3G LTE), global system of mobile communications (GSM), IP multimedia subsystem (IMS), HSPA+, general packet radio service (GPRS), voice over Internet protocol (VoIP) and session initiation protocol (SIP).

The emergence of flat rate mobile data pricing, positive growth of smartphone shipments, and high-speed mobile broadband availability has spurred the adoption rate of mobile VoIP, says Frost & Sullivan Senior Industry Analyst Saverio Romeo. Mobile operators realise they can no longer ignore the fact that mobile will be a key component of integrated IP-based communications and next generation wireless technologies such as HSPA+ and LTE.


Significant traction in the application space, primarily driven by the success of the iPhone, has resulted in several smartphone vendors making provisions in their applications stores for users to download and use third-party VoIP clients over both wireless fidelity (WiFi) and cellular broadband networks.

However, many cellular operators have prohibited the use of mobile VoIP over their cellular networks, with some imposing a surcharge to avoid cannibalisation of their circuit-switched voice revenue streams. Moreover, cellular operators face intense competition from the more popular Web-based VoIP alternatives that are permeating the mass market.

Despite user demand for cost-effective services, some mobile operators will continue to discourage mobile subscribers from using VoIP over cellular networks and suggest that it will not provide the same quality, efficiency and reliability of services offered by the GSM network, explains Romeo. Recent surveys indicate that nearly 60 to 70 per cent of the major European mobile operators prohibit or restrict the usage of VoIP over their popular mobile broadband data plans.

Mobile operators should eventually do away with imposing bans or surcharges to their mobile broadband packages to support mobile VoIP, as the client devices supporting HSPA+ and LTE will be based on open platforms and support SIP for third-party applications.

When the operators migrate to an all-IP IMS network, they should drive innovative services such as multimedia telephony, high definition voice, integrating voice with context-based information about the user, and the device from a converged presence-enabled address book, concludes Romeo. This will enable them to differentiate their services from mobile VoIP start-ups.

If you are interested in more information on this study, please send an e-mail to Joanna Lewandowska, Corporate Communications, at [email protected], with your full name, company name, title, and the contact details.

Impact of Mobile VoIP on Next Generation Cellular Networks is part of the Mobile & Wireless Growth Partnership Services programme, which also includes research in the following markets: The Use of Social Network Analysis in the Telecommunications Industry; The Modes of the Mobile Content Industry The Stores and the Web, Sustainability in Telecoms, and Mobile Broadband in Central and Eastern Europe. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.

Impact of Mobile VoIP on Next Generation Cellular Networks M3D5-65 CONTACT: Joanna Lewandowska, Corporate Communications - Europe, Frost & Sullivan Tel: +48 22 390 41 46 e-mail: [email protected] WWW: http://www.frost.com ((M2 Communications disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.net on the world wide web. Inquiries to [email protected].

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