VoIP Over Wi-Fi Helps, Hurts Service Providers - InformationWeek
IoT
IoT
News

VoIP Over Wi-Fi Helps, Hurts Service Providers

A new report warns mobile phone service providers that VoIP over Wi-Fi could cut into profits.

VoIP over Wi-Fi represents a double-edged sword for mobile phone service providers: it can be a powerful tool to generate sales, but it can cut into profits. That dilemma is outlined in a report on mobile roaming released Thursday by market research firm Visiongain.

The research firm noted that roaming over Wi-Fi typically carries a cost of just two cents a minute while calling over mobile phone roaming can cost $1.25 a minute.

"Roaming provides a significant proportion of operator revenues " up to 17 percent," said Adam Walkden, Visiongain analyst, in a statement. "To protect these revenues, it is important that operators take the threat of VoIP seriously."

Service providers are gradually beginning to provide Wi-Fi on handsets and Visiongain cited that recent introduction of the Nokia 6136 GSM/Wi-Fi handset as a significant development "because it legitimizes the technology's entry into the mobile handset market." Other handset makers including Samsung and i-Mate have introduced mobile phone devices with Wi-Fi capability.

Service providers, Visiongain observed, are seeking to boost roaming usage to counter the drop in voice revenues. The analyst firm said 95 percent of subscribers do not currently use roaming services while traveling abroad.

The market research firm noted that the proliferation of Wi-Fi hotspots around the world is creating opportunities for service providers to attract more business travelers. Walkden said: "The difference in cost of a roaming call through mobile and VoIP is significant enough to attract the attention of business travelers, the main staple of roaming revenues."

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2018 State of the Cloud
2018 State of the Cloud
Cloud adoption is growing, but how are organizations taking advantage of it? Interop ITX and InformationWeek surveyed technology decision-makers to find out, read this report to discover what they had to say!
News
Don't Collect Biometric Data Without Providing Notice
Lisa Morgan, Freelance Writer,  2/1/2019
Commentary
AI and the Next Recession
Guest Commentary, Guest Commentary,  1/24/2019
Commentary
The Title Machine Learning Engineer Will Start to Disappear
Guest Commentary, Guest Commentary,  2/7/2019
Register for InformationWeek Newsletters
Video
Current Issue
Security and Privacy vs. Innovation: The Great Balancing Act
This InformationWeek IT Trend Report will help you better understand and address the growing challenge of balancing the need for innovation with the real-world threats and regulations.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll