Wednesday, September 24, 2008

U.K. VoIP Declines?

The number of U.K. VoIP users has fallen in 2008, according to research conducted by Ofcom, the U.K. communictions regulator. Ofcom suggests this is in part because of consumer resistance, and in part because the cost of using mobile or traditional fixed line services is falling.

The majority of broadband users still choose  not to use VoIP, perhaps because of issues over VoIP quality of service or
because of competition from low-priced fixed and mobile telecoms services, Ofcom says. 

Though VoIP often is marketed as a cheap way to make international calls, the cost per minute of making international calls over fixed and mobile connections continues to decline, while use continues to grow. With flat rate tariffs becoming an increasingly prevalent component of both fixed and mobile tariffs, the incentives to use VoIP services are decreasing.

Ofcom traditionally has included Skype and other "over the top" services in the VoIP category, so it isn't exactly clear what the findings might mean. It is doubtful what Ofcom means is that telco or cable-provided voice replacement services are declining. Most likely, Ofcom has found evidence of lower use of Skype and other IM-based calling apps. 

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