Wednesday, October 12, 2011

VoIP Will Cannibalize Mobile Voice

VoIP always has been a troublesome issue for established voice providers. On one hand, it has promised the ability to create and deliver new and richer services. On the other hand VoIP has had the potential to essentially cannibalize the single most important revenue stream a telco or mobile service provider possesses. VoIP will cannibalize existing voice

O2's plans to offer VoIP technology are an example. O2 Connect is a new mobile service that allows smart phone users to use voice and text services over Wi-Fi networks from their mobile number. Users can call or text to any U.K. mobile or landline number using the service.

O2 Connect will initially be available on iOS and Android smart phones and will subsequently roll out to other devices. O2 Trials VoIP Service


The trial will commence in October 2011 by invitation only and will include O2 consumer and business customers. All of the traditional challenges are present in the test. O2 hopes to provide higher value and greater flexibility for its customers. But O2 Connect also can displace some of the revenue O2 otherwise might earn from voice and text messaging services.


6 comments:

Anonymous said...

Source of the graph?

Gary Kim said...

Pyramid Research, as I recall.

Anonymous said...

can you share the link of the pyramid research paper?

Gary Kim said...

All I can remember at the moment is that it was in the November 2007 time frame, and source was Analysys Mason. Likely was quoted in an Ofcom report about that time as well.

http://ipcarrier.blogspot.com/2007/11/massive-mobile-voip-use-by-2012.html

The Voice on Telecom said...

Every operator has to come to peace with VoIP in some way. And this will help Telefonica, which owns O2, stay relevant.

But of course this is just one model, among several. So when does it make sense for an operator to partner with an over-the-top company? And when does it make sense for them to do it themselves?

http://thevoiceontelecom.blogspot.com/2011/10/is-telefonica-going-too-far-into.html

victoria said...

Good stuff !! this was my first time that i have visited you article and it is awesome ..

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