Global VoIP Subscribers Expected To Touch 262 Million By 2015
According to new research, industry analyst Infonetics Research suggests the Voice over Internet Protocol services industry is set to achieve revenues of US$76 billion by the year 2015.
The growth in the industry which is dominated by players such as Vonage VoIP will be driven primarily by Session Initiation Protocol (SIP) trunking, and hosted VoIP services.
The report suggests that SIP trunking revenues are expected to grow at a whopping 52 per cent CAGR from now until 2015. The report also suggests that the number of residential subscribers is expected to reach 262 million globally by the year 2015, up from the current 179 million subscribers currently.
The three leasing players in the global residential VoIP business include NTT, France Telecom and Comcast, all of whom are existing fixed line or mobile telephony incumbents and have embraced a new business model which incorporates VoIP services as part of their future growth strategy.
“We’ve increased our short- and long-term forecasts for the voice over IP services market, as adoption in the residential, SOHO, and business segments continues unabated,” Infonetics Research said in its statement.
Whilst the VoIP services segment dominates numerically, the majority of revenue growth comes from the business segment.
“Following a healthy 2010, the overall VoIP services market is on track to grow another 17 percent in 2011,” Infonetics added.
>> Click here to order online with Vonage VoIP
Please Note - All Prices Quoted Are Correct at Time of Posting
Vonage Launches iPhone App
Vonage VoIP is one of the cheapest methods of calling friends, family and business associates around the world. Recently the company decided to enter the emerging market of mobile applications, and has dived into the iOS segment, launching an iPhone application, that allows direct payment from your existing iTunes account. The app even offers free calls to over 100 countries for a limited time only with every download.
Beyond the free calls, the Time to Call application will let users make 15 minute calls around the world at a small fraction of the cost of the same call were it made through a traditional mobile carrier, again with easy payment using the iTunes platform.
The Vonage VoIP Time to Call App does not require a continuous commitment, and using the service to make calls is both easy and quick. All you need to do is download the application, then simply choose which country you prefer to call, hit the buy button and enter you credentials on iTunes. You can then make the call either from your address book, or by punching the number in by direct dial.
A fifteen minute call to over 100 countries ranges from between $0.99 to $1.99. The cost of making a call to mobiles and landlines are exactly the same, and you do not have to subscribe to the Vonage home phone service to be able to use the app.
>> Click here to order online with Vonage VoIP
Please Note - All Prices Quoted Are Correct at Time of Posting
Mobile Operators Starting To Embrace VoIP Applications
VoIP applications such as Vonage VoIP that run on mobile devices such as the iPad has left the mobile telephony industry in a quandary over the impact of these services on revenue, especially since VoIP continues to grow ever more popular.
Analysts Mason’s say that nearly 20 per cent of all smartphone users in the developed markets have downloaded a mobile VoIP application, and of those, 4 per cent are active users of the service.
Consumers can use applications from Vonage VoIP or Skype to make either free or inexpensive calls using WiFi or 3G, which poses a significant threat to the revenue stream of mobile operators, though most have departed from strategies designed to block these applications, and have instead chosen to embrace it.
“We have had a Skype mobile app on many of our smartphones for the past 18 months or so,” a spokeswoman for Verizon Wireless in America said.
She did not comment on the iPad Skype app specifically, but noted that “tablets are more and more popular with customers, for many different reasons, including the wide range of apps you can use on them.”
3UK has embraced the adoption of Skype on its mobile devices for many years, saying that it believes that the ability to make VoIP calls from its devices has helped the operator both attract and retain customers.
“People who use Skype the longest stay with 3,” a spokesman said. He declined to comment on the impact on revenues.
However, analysts warn that operators will need to be vigilant to avoid revenue cannibalization.
“Clearly, there is a risk that subscribers will use services provided by other companies and that some spend will migrate from operators,” said Tom Rebbeck, research director for Analysys Mason.
“However, we don’t want to exaggerate the risk,” he added. “Operators will still generate revenues from providing network access.”
>> Click here to order online with Vonage VoIP
Please Note - All Prices Quoted Are Correct at Time of Posting
139 Million Users of Mobile VoIP By 2015
New research published my market research firm In-Stat suggests that over the last half decade mobile VoIP has rapidly gained in popularity as an inexpensive alternative to making international calls.
Companies such as Vonage, Skype and Cisco have all helped make this technology more reliable and much more viable for both businesses and consumers.
As mobile applications increasingly get integrated with social networking apps, the potential for this technology to achieve critical mass, transforming fixed line telephone usage into one comprised almost exclusively of mobile. As this change occurs increasing investment in the technology will take place, and by 2015, it is anticipated that the market will be valued at roughly US$6 billion, creating a significant opportunity for suppliers of equipment as well as services.
For business this transformation means that mobile phones will eliminate the limitations of space and time for transacting business, increasing their effectiveness. This presents a challenge to mobile telephony incumbents however, who must figure out how to embrace and montetise the technology before losing traffic to new entrants such as Vonage VoIP and Skype.
Skype for example already has 600 million users and it continuously expanding, recently it acquired Qik which enable iPhone and Blackberry device users to conduct two way video calls, record and share the video across multiple platforms. Skype itself is in the process of being acquired by Microsoft, giving it significant financial muscle.
Mobile VoIP is simply a method of making calls using your mobile phone and routing them over the internet rather than the network of an operator. The main reason why the technology has boomed is there are significant cost savings to be had. You can use the technology wherever there is an internet connection, either over a Wi-Fi network or through 3 and 4G.
Business can use their current wireless IP infrastructure to provide voice services across their corporate WLAN (wireless local area network). Traditional mobile phones have broad coverage which cannot be said for mobile VoIP, which is its primary limitation. Users will necessary have to be located at an access point.
Traditional Local Area Networks make use of cables for IP phones to send and receive data. With a WLAN however, RF capability enables users to access core business applications in real time. That is to say when a mobile VoIP phone powers one, it seeks out an access point from where it logs onto the network. As a user moves between locations, the mobile VoIP phone moves between access points as it moves out of range of one, and into the range of another.
The data is transmitted to a server where it is processed and routed, with the Access point becoming all important since it provides the link into the network. Some WLAN’s have access points that are connected to an Ethernet switch by cable. The switch provides access to gateways and the server to support wireless IP telephony. Other networks make use of wired to support wireless, with the wired component consisting of routers, switches, bridges all enabling wireless capability.
According to the report from In-Stat by 2014 the largest driver of VoIP revenues will be Europe, the Middle East and Africa, which should account for 39 per cent, Asia Pacific follows after accounting for 32 per cent, and North America brings up the rear accounting for 21 per cent.
>> Click here to order online with Vonage VoIP
Please Note - All Prices Quoted Are Correct at Time of Posting
The Telecoms Market Continues To Transform As Landlines Increasingly Dissappearing
A new report from the US Federal Communications Commission suggests that nearly 90 per cent of Americans own a mobile phone with 25 per cent having cut the cord all together with their fixed line service.
The trend has meant that telecom’s companies are cashing in on the mobile bonanza, particularly when the report also suggests that the younger generation, aged between 25 to 29, abandoning fixed line in ever greater numbers.
This shift into mobile is no great surprise and has been taking place for well over a decade. It does mean bad news for companies who provide only landline services, but most telcos around the world expanded into mobile services as well. So many will indeed profit from the trend.
The report also suggests that whilst consumers are moving away from fixed line telecom, they are also demanding services beyond voice, and the mobile telcos are cashing in. revenue from data and texting has jumped.
Landlines disappearing has also meant that phone books are also increasingly becoming extinct, and it is unlikely that mobile numbers will be used instead. The trend may also result in cable companies increasingly shifting their focus to wireless and broadband as well.
The other great trend is the shift to VoIP telecom through services such as Vonage VoIP.
All these developments means residents of rural areas could face problems in the future, since it is difficult to find internet or mobile services in remote locations.
>> Click here to order online with Vonage VoIP
Please Note - All Prices Quoted Are Correct at Time of Posting
Make Sure You Check With Your Alarm Company When Installing VoIP
Security companies are warning that the increasing adoption of VoIP for their telecoms services might have an impact on their alarm systems. New technology which enables phone calls to be placed via broadband rather than traditional copper based phone services offer enhanced features and lower costs compared to traditional services.
What most people are unaware of however with self installed services such as Vonage VoIP, if you also have an alarm system, that may lose its connection to the telephone service, rendering it unable to send a signal to the central station.
Even professionally managed digital telephone services result in the alarm system becoming unreliable, so to ensure that signals do indeed get sent by the alarm system, security companies are now installing wireless mobile communicators for their customers, which ensure even when a phone line is cut, communications still continue.
If you have recently switched your phone service you should call your security company an ensure they are aware, and offer advice on any precautionary steps you may need to take.
>> Click here to order online with Vonage VoIP
Please Note - All Prices Quoted Are Correct at Time of Posting
Microsoft Patents VoIP Eve’s Dropping Technology
After acquiring its own VoIP calling platform, Microsoft is attempting to patent a technology that will allow the government or any one else who is interested and operates within the law, the ability to tap calls made using VoIP services such as Vonage UK
The company in actual fact applied for the patent in 2009 well before its recent announcement that it would acquire Skype, thus it is highly unlikely that two years ago it was preparing for just such an acquisition.
Microsoft has named the patent “Legal Intercept” which enables an eavesdropper to covertly record calls made over VoIP networks. The company has rationalized the development of the technology as a method to comply with requests from the government to enable them to undertake surveillance and wire tapping.
“Sometimes, a government or one of its agencies may need to monitor communications between telephone users,” the patent reads.
“Traditional techniques for silently recording telephone communication may not work correctly with VoIP and other network-based communication technology,” it reads. “For example, VoIP may include audio messages transmitted via gaming systems, instant messaging protocols that transmit audio, Skype and Skype-like applications, meeting software, video conferencing software, and the like.”
If Microsoft is granted the patent, it will enable Skype to placate governments who are resisting allowing the service to operate in their countries without the ability to tap or monitor phone calls.
Last year India threatened to ban Skype, Google and BlackBerry for failing to comply with its stringent security laws since the country faces an excessive threat from terrorism following the aftermath of Mumbai and other terror attacks.
In 2008 Skype itself was the subject of intense criticism, when it emerged that it had monitored calls on behalf of the Chinese government.
Academics say that whilst the technology is law enforcement friendly, it also means it is dictator friendly, and could have implications on popular revolts such as those that are taking place in the Middle East.
>> Click here to order online with Vonage VoIP
Please Note - All Prices Quoted Are Correct at Time of Posting
Facebook Adds VoIP Video Chat Functionality To Platform
Facebook the dominant online social networking platform is intensifying its competition with Google by offering a free VoIP video chat service similar to Vonage VoIP.
The introduction of the video chat function is designed in large part to fend off the threat from Google which recently incorporated that feature into its social network as an alternative to FaceTime for Apple’s iPhone.
Facebook also unveiled a multi-person chat feature that lets several people hold online conversations at the same time.
“We’re using the best technology that’s out there for doing video chat with the best social infrastructure that’s out there in order to create some really cool new scenarios,” Zuckerberg said during a presentation at the event.
Facebook’s video chat offering makes use of technology from Skype which is Vonage VoIP’s rival, which itself has been the target of an acquisition by Microsoft who agreed to buy the company in May.
“This is a really strategic long term deal between Skype and Facebook,” said Neil Stevens, vice president and general manager for consumer at Skype, in an interview with Bloomberg Television. “This isn’t just a one shot one deal implementation of a product. This is a long term relationship.”
Google’s new site, called Google+, includes Google’s maps and images, messages, comments and other content from selected groups of friends, as well as a video chat feature.
Microsoft, based in Redmond, Washington, invested $240 million in Facebook in 2007 and entered an agreement to sell ads on the social network.
>> Click here to order online with Vonage VoIP
Please Note - All Prices Quoted Are Correct at Time of Posting
Did Video Kill The Radio Star? Not Quite It Didn’t
Recently there has been intense debate over whether the revenue that incumbent telecoms operators generate from their bread and butter voice services is in terminal decline as innovative VoIP services such as Vonage VoIP have emerged competing head on with the incumbents. Many have been saying for years that the golden days of the telco are over.
Some analysts beg to differ, and make the case that voice still is and will continue to be a prosperous enterprise for operators for a little while longer.
Lack of Net-Neutrality
Earlier in the year The Dutch Parliament signalled its intent to become the first European country to officially legislate net neutrality. This would force internet service providers and operators to treat all types of traffic equally for all services including VoIP applications such as Vonage VoIP.
That was a huge deal for consumers, and was monumental for all Mobile VoIP and IP messaging applications in Holland.
However for net neutrality to become ubiquitous, it will take more than a single country, and all other countries must also adopt a set of similar laws and practice, which is inevitable, but is likely to take a while yet.
Until universal net neutrality becomes a reality, telecom operators legally have the right to block applications on their networks, or charge their subscribers extra for using third party VoIP, such as Vonage VoIP, to offset their revenue loss. Indeed some already levy these additional charges. With others likely to follow suit.
Operators Sell Bundled Services.
Most telcos actually sell their subscription plans as bundles of different services. Which means under a plan you get a defined number of text messages and a defined number of voice minutes, and that type of pricing is highly unlikely to change any time soon. As telcos face ever greater competition on multiple fronts, building an effective sales strategy is a powerful way to protect and enhance their revenues.
Feature Phones Not Dead Yet
It is no great revelation that smartphone sales have grown exponentially, with some estimating that in 2010, they grew by 40%. It is expected that in the year 2014, there will be 1.4 billion smartphone unit sales, and with the current adoption rate Nielsen reckons that smartphones will overtake feature phone sales in the US by the end of this year.
Clearly this trend represents an enormous opportunity for companies such as Vonage VoIP to target customers with mobile applications that are disruptive of existing business models. The market will be large enough for companies such as Vonage VoIP and Skype to take huge chunk out of Voice revenue of incumbent telcos.
However the absolute picture is much more important than the relative one. On a global level, feature phones dwarf smartphones by a factor of 4 to 1. It will be a while before that ratio becomes one which represents an existential threat to incumbents on a global level, though it must be said the ratio varies on a regional and economical developmental level, so the telcos at risk are the ones with the wealthiest customers, and who tend to be the biggest.
For now though, operators have room to breathe, the requirement for conventional voice services will continue unabated for some time yet. But they must start preparing for the new world order that in inevitable in the future, they must learn to embrace the future and not fear it, to not let equity markets and share holders seeking immediate returns drive their planning for a sustainable future, one in which they survive the internet protocol transition.
>> Click here to order online with Vonage VoIP
Please Note - All Prices Quoted Are Correct at Time of Posting
As VoIP Phones Get Ever Cooler More People Adopting Them
A new study from research firm IDC suggests that the Japanese are increasingly taking to VoIP services such as Vonage VoIP, and that in particular VoIP phones are gaining popularity in the land of the rising sun.
“the extent to which Japanese customers are putting VoIP phones to work on a day-to-day basis has risen substantially” in recent years IDC said.
During the 2009 and 2010 calendar year IDC says Japanese users of services such as Vonage VoIP found and increasingly varied number of uses for their IP phones, which go beyond simply cutting the price of the call.
“Voice, video and Web conferencing via IP telephony reached a 27.8 percent market penetration, up 8.6 percentage points year-on-year,” according to the report.
The report from IDC found that whilst Japanese investment in VoIP has remained constant, with a marginal increase, the number of features that are being adopted is quite different and rapidly increasing.
According to Telappliant officials, VoIP phones, with wireless handsets often supplied with a charging dock, “could be charged without the need for a direct circuit connection between the handset and the mains.”
Wireless communications analyst Tina Teng was quoted by the Telappliant blog as saying that early mobile phones represent early adoption of technology:
“which aims to resolve the age-old issue of tangled wires trailing from mains sockets. Mobile phones will contribute the largest share of revenue to wireless charging.”
“presence notification, business application collaboration and unified messaging” are on the uptake from 2008.
Presence notification is one of the coolest features of IP phones which lets you indicate to other users when you are at your desk, and works in the same way one would express their availability on an Instant Messaging platform. If you do not want others to know, then simply turn it off.
>> Click here to order online with Vonage VoIP
Please Note - All Prices Quoted Are Correct at Time of Posting