September 15, 2006
Mobile VoIP could pose a major threat to the mobile industry
It is possible to make mobile voice calls over WiFi internet using methods including a WiFi enabled device, through a dual mode mobile handset or using 3G.
According to GfK, making free voice calls over the internet is booming with dozens of offerings available, but making voice calls over the internet is not limited to fixed locations. Could mobile VoIP pose a major threat to the mobile industry?
Although the WiFi network is growing fast, but is far from having 100% WiFi coverage. Mobile VoIP users are dependent on the availability of WiFi hotspots. Early adoption is expected to be in business and areas rich in hotspots. Dual mode handsets, which support the seamless handover between cellular and a WiFi networks, could increase the potential of mobile VoIP.
The first WiFi-enabled handsets emerged in October 2005 with two sim-free models to choose from (average price £295.30). From end of April 2006, subsidised WiFi handsets were launched by the network operators, causing average prices to decrease to £32.41, according to GfK, which accelerated growth. In July 2006 WiFi-enabled handsets represented 2.5% of handset unit sales.
Growth is also predicted for WiFi enabled handsets, but at which rate and to reach Which level of penetration?
Mobile operators can limit the threat by continuing to drive customers onto higher priced tariffs. Some handsets are further subsidised if the customer agrees to be locked into a higher priced tariff for a minimum period. Over the last 12 months the amount customers spend on mobile tariffs has increased.
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