Mobile VoIP: Fear of Canibalized Voice Minutes?
MobileCrunch has this article on T-Mobile UK’s introduction of its 22.5 pound web ‘n’ walk service. This is a service that gives 10 Mb of access for use in Mobile Data, Voice and possibility Instant Messaging.
An interesting point raised was that the common reason why mobile network operators are refusing to introduction mobile voice-over-IP services on their mobile networks is fear of cannibalizing their bread-and-butter voice minutes.
T-Mobile and some other operators, such as Verizon and Cingular in the US, have taken a dim view of VoIP over mobile data services, claiming the “poor” quality affected customers’ perception of their services. Most analysts agree, however, that the real reason is the fear of cannibalization of voice minutes, the mainstay of operators’ businesses. Consumer pressure, and an increasing flow of Wi-Fi-enabled devices are chipping away at this, however.
However, does this apply to countries like the Philippines that do not make a significant amount of their mobile revenues on voice traffic? Nothing much to cannibalize. Here, a tariff plan like this can be used to increase network operator ARPU. Of course, the price point of web ‘n’ walk is too high for the Philippine market. This roughly translates to around 2,100 Philippine pesos a month. So for a country that lives and breathes on pre-paid, this is definitely too high. A tariff plan like this can also be used to covertly introduce an Instant Messaging (IM) service. Another major benefit of a tariff plan like this is that it can be used to reduce dependency on circuit switch components and move load to the packet switched components of the operators’ mobile networks further reducing operational expenses.
ps. Commercial power came back at around noon time yesterday. So, while I was complaining about the power outage in Starbucks Rockwell, power was already restored in my neighborhood. Although, they definitely could have done a faster job. I still send my kudos to the doubleshifting Meralco linemen.
October 3rd, 2006 at 8:01 pm
Related to: Why is there no Skype Mobile? - or not yet, at least.
October 3rd, 2006 at 11:26 pm
I don’t thinks plain VoIP would be as problematic as skype. For one, plain VoIP handets don’t have to be skype supernodes and “share” their processing power and bandwidth. Skype, after all the hoople about VoIP, is still hingled on p2p technology. Maybe if they did decide to remove the p2p stuff of skype. But, if they did that then it would be “just like any other” voip solution.
October 4th, 2006 at 5:47 am
According to the comments in GigaOM, Skype Mobile won’t act as a supernode. A conventional SIP over WiFi/3G solution is Truphone - I got a lengthy comment about it in my Mobile Skype post. I’ll write more on this later, maybe when the N Series version is out.
October 4th, 2006 at 9:47 am
aha that would help but still skype is pretty fat.
October 14th, 2006 at 8:16 am
Just realized that the Nokia E-Series SIP enabled phones can run native SIP-based VoIP on them. Enterprises should love this feature. Imagine being able to carry around your office local with your on your mobile (portable locals). Also being able to make calls as if they originated for your office PBX. With WiFi, call charges can definitely be reduced by using the WiFi network and your VoIP service to route calls. I wonder if there are any takers?