Mobile VoIP subscribers will near 410 million by 2015
October 18, 2011 10:01 AM | Interesting | Comments (1)
 "The adoption of over-the-top (OTT) mobile VoIP services is growing rapidly but it is not without challenges. With free applications and extremely low revenue from users, it is tricky for application providers without the deep pockets of larger companies like Google, Microsoft, and Telefónica to have a sustainable long-term business model. Despite the fact that we expect mobile VoIP subscribers to grow nearly 10-fold from 2010 to 2015, there is relatively little money to be made from it in the near term," poses Diane Myers, directing analyst for VoIP and IMS at Infonetics Research. |
Co-author of the report Stéphane Téral, Infonetics Research's principal analyst for mobile infrastructure, adds: "As LTE becomes the universal mobile infrastructure, TDM voice -- which is a $500 billion-a-year business -- will migrate to VoLTE (native mobile VoIP). In the near term, though, two key challenges need to be addressed: the world needs widely available LTE handsets that support VoLTE -- and we're nowhere near that stage -- and Single Radio Voice Call Continuity (SRVCC) needs to be finalized so that voice calls work seamlessly between LTE and legacy networks. Make no mistake: VoLTE is the future; it will just take many years to get there."
MOBILE VOIP MARKET HIGHLIGHTS
OTT providers, led by frontrunner Skype, dominate the worldwide mobile VoIP services market
Infonetics Research forecasts the number of mobile VoIP subscribers to grow from 47 million in 2010 to almost 410 million by 2015, driven by increased smartphone and mobile broadband adoption
Native mobile VoIP will launch with Verizon's VoLTE service in 2012, but will remain an extremely small portion of the total mobile VoIP market until there is full LTE coverage around the world, not likely until around 2020
In 2010, operators made on average only $13.21 per user per year from mobile VoIP services, demonstrating how little revenue there is to be made from OTT mVoIP services
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Comments
while mobile VoIP services only bring in $13 per year per user, that's still $600 million, which is nothing to sneeze at. On top of that, there isn't a whole lot of infrastructure needed to run a service like that, hence Magicjacks' rise to fame and fortune.
All a company needs is an app for smartphone users to download, and the cell phone company ends up footing the bill for the data usage. If cell phone companies were smart, they would sell the app to their users, and charge them $5 per month for the VoIP service. Most users wouldn't even blink at that, and the cellular companies would end up pulling another $60 per user per year plus data overages.
while it's not the best business model, it's better than mine... LOL
Greg
Posted by: Greg | January 10, 2012 4:27 PM
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