CARIBBEAN TELECOMS BRIEFING
Mobile VoIP:
Impacting Voice Networks,
Devices & Business Models
in the Caribbean
www.informatm.com
MOBILE VOIP:
IMPACTING VOICE NETWORKS, DEVICES & BUSINESS MODELS IN THE CARIBBEAN
ABOUT THE AUTHORS
Dr. Malik Kamal-Saadi is a Principal Analyst
within Informa Telecoms & Media specialising
in market and technology development. He has
authored many of Informa Telecoms & Media’s
market leading reports including Mobile
Application Platforms and Operating Systems, Future
Mobile Broadband, IMS Opportunities and
Challenges and Future Mobile Computing. Malik
combines thorough understanding of strategic and
business-related issues with an in-depth knowledge
of telecoms-related technologies and has more than
10 years’ experience in the telecoms industry.
Simon Sherrington is a freelance partner of
Informa Telecoms & Media with 13 years of
experience of analysing and reporting on telecoms
and Internet market trends. He was the author of
the Informa Telecoms & Media report Global
Mobile Strategies for Quadruple Play. Simon
specialises in looking at how companies within the
telecoms and Internet markets are innovating; and
analysing how company strategies are evolving in
the face of technological, regulatory, consumer-led
or competitive pressures.
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MOBILE VOIP:
IMPACTING VOICE NETWORKS, DEVICES & BUSINESS MODELS IN THE CARIBBEAN
Contents
CHAPTER 1
INTRODUCTION...................................................................1
Market segmentation and roadmap for VoIP in the mobile market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Figure 1.1: Market segmentation for VoIP in the mobile and wireless markets . . . . . . . . . . . . . . . . . . . . . . 3
Figure 1.2: Roadmap for different mobile VoIP solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Supply-side market drivers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Figure 1.3: Types of player targeting the wireless and mobile VOIP markets . . . . . . . . . . . . . . . . . . . . . . . . 6
Fixed wireless operators. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Public Wi-Fi operators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Hybrid operators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Mobile-only operators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Fixed network operators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Service providers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Figure 1.4: Comparison of supply side drivers and inhibitors by company type. . . . . . . . . . . . . . . . . . . . . . . 9
Near-term challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Longer-term perspective. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
CHAPTER 2
C A S E S T U D I E S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Mobile operator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Sprint Nextel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Company overview and strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Customers/subscribers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
SWOT analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Established VoIP providers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Jajah . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Company overview and strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Figure 2.3: Jajah VoIP call . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Customers/subscribers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
SWOT analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Vonage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Company overview and strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Customers/subscribers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
SWOT analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
CHAPTER 3
M O B I L E A N D W I R E L E S S V O I P M A R K E T F O R E C A S T S 2 0 0 6 - 2 0 1 1 . . . . . . . . . . . . . . 21
Forecasts overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Figure 3.1: Worldwide mobile and wireless VoIP users by market segment . . . . . . . . . . . . . . . . . . . . . . . . 21
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Mobile plug-in solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Figure 3.2: Worldwide mobile users of VoIP plug-in solutions by region, 2006-2011 . . . . . . . . . . . . . . . . 23
Mobile softphone solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Market forecasts for smartphones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Figure 3.3: Worldwide smartphone sales, by region, 2006-2011. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Market forecasts for WLAN-enabled mobile phones and PDAs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Figure 3.4: Dual mode handsets versus WLAN-enabled PDA sales, 2006-2011 . . . . . . . . . . . . . . . . . . . . 26
Figure 3.5: Worldwide WLAN-enabled handset sales, by region, 2006-2011 . . . . . . . . . . . . . . . . . . . . . . 27
Market forecasts for VoWLAN softphone users . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Figure 3.6: Worldwide VoWLAN users, by region and by handset type, 2006-2011 . . . . . . . . . . . . . . . . 29
Figure 3.7: Worldwide VoWLAN users, by handset type, 2006-2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Figure 3.8: Worldwide VoWLAN users, by region, 2006-2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Market forecasts for users of softphones over cellular networks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Figure 3.9: Worldwide softphone over cellular users, by region, 2006-2011 . . . . . . . . . . . . . . . . . . . . . . . . 34
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III
MOBILE VOIP:
IMPACTING VOICE NETWORKS, DEVICES & BUSINESS MODELS IN THE CARIBBEAN
Chapter 1
Introduction
VoIP services delivered over a wide range of mobile or wireless technologies are both an
opportunity and a threat for operators and vendors.
New entrants and smaller operators are already using wireless and mobile VoIP as a means
of undercutting the market leaders. At the same time, the major operators are positioning
wireless VoIP as a means of defending market share of call minutes and selling service
bundles. The market for VoIP is currently gaining momentum although a number of
challenges still need to be overcome before network operators and VoIP service providers can
enjoy its full potential.
Although companies are still in the very early stages of introducing both wireless and mobile
VoIP services and end user demand is as yet unproven, operators are increasingly of the view
that, ultimately, migration to wireless and mobile VoIP is inevitable.
VoIP currently represents one of the hottest topics in the telecommunications industry. It is
already an established business as thousands of third party services providers all over the
world are offering cheap VoIP services where traffic is carried over either the PSTN or cellular
networks and over Internet protocol at the edge of the network. VoIP is also established in
the enterprise environment, where it offers several advantages over dedicated fixed lines for
voice including greater intra-networking facilities, more efficient ways of call handling and
incorporation of value added services (VAS) such as caller ID and corporate settings.
Companies such as Cisco and Avaya are already leading solution providers in this arena.
There is now an increasing trend to bring the VoIP model into the closed and coveted worlds
of mobile communications.
Existing network operators envisage gradually adopting VoIP and moving their voice
traffic onto a single high speed data network because employing VoIP can offer numerous
potential advantages:
• Operational economy because it is more efficient to build and manage a single high-speed
transport network designed to handle voice, video and data together as IP.
• Lower equipment costs because convergent network and terminal equipment bring
significant savings.
• Software-based flexibility makes it cheaper and faster to create and test, provision and
manage new services.
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Introduction
• Software-based control coupled with the inherent flexibility of IP makes it easier to build
innovative new features and services.
• Having voice run over IP enables service providers to offer service bundles more
economically and to offer a variety of value added services around voice.
But at the same time VoIP is a disruptive technology that is increasingly threatening the
revenues of fixed and mobile operators. Currently, the majority of VoIP users are using
software-based solutions over broadband access from likes of Skype, Vonage, Jajah, Yahoo,
Microsoft and Google. The number of players currently offering VoIP services through
software solutions has grown dramatically over the last two years from just four or five players
in 2004 to more than 50 players currently competing in both mobile and fixed environments.
The operators are threatened by these VoIP solutions; they are carried over the operators’
broadband networks and substitute their voice services, directly cannibalising their revenues.
The operator is in danger of becoming a fat data pipe where third-party service providers
collect a large portion of existing revenues while the operator collects just a flat fee for
providing a data pipe to the home.
Mobile operators may also be increasingly challenged by players offering VoIP services via
mobile software solutions. As the biggest, fastest-growing and most profitable part of the
global voice market, mobile is a tempting target for disruptive new entrant players.
Relatively high mobile pricing makes mobile VoIP an attractive proposition for new
entrant competitive providers. They can use VoIP to bypass mobile operators’ conventional
switched voice infrastructure and high pricing and offer first cheaper and, perhaps, eventually
richer services.
Market segmentation and roadmap for VoIP in the mobile market
The growth of mobile VoIP solutions and IP softphones in the mobile and wireless markets
is snowballing. There are increasing numbers of IP phone models, VoIP-enabled handset
devices and PDAs in the market. VoIP applications are now used by a number of device
manufacturers, including Nokia, Samsung, Motorola and HTC, as competitive differentiators
to attract customers and increase market share.
Currently there are more than 25 companies worldwide that have developed downloadable
or embedded pocket VoIP software client solutions to enable the community of their users
to talk for free to other users using the same client. Subscribers are charged minimum fees
when making calls outside their communities. These companies also act as mobile virtual
VoIP service providers offering relatively cheap call services to any mobile or fixed line.
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connectivity, so users can enjoy VoIP service in public hot spot areas, at work by connecting
to the corporate network or at home by connecting to the broadband access.
The requisite high performance of the mobile device hardware needed to process VoIP packets
Introduction
So far, the majority of mobile VoIP soft solution providers are targeting access via Wi-Fi
is another challenge facing soft solutions. So far, only PDAs and Pocket PC like phones can
handle this functionality.
Another threat facing pure mobile operators may come from operators that have both fixed
and mobile telecommunications interests. These players are now building a global strategy to
provide fixed/mobile converged (FMC) services. Wireless local area networks (WLANs) – such
as 802.11/a, b and g, Universal Mobile Access (UMA) and VoIP – are the core enabling
technologies for FMC services. VoIP will be used to carry voice and other VAS over the WLAN
and also to carry them over fixed networks. One of the main benefits of deploying FMC is to
help carriers to engineer the traffic better between high-cost mobile infrastructure and low-cost
fixed infrastructure.
At the cellular networks level, VoIP traffic is bandwidth-hungry. Because of the high
requirements needed to ensure quality of service (QoS) as well as manage and transport VoIP
traffic over cellular networks, only mobile broadband technologies, such as HSUPA,
CDMA2000 1xEV-DO Revision A (EV-DOrA) or WiMAX, have the ability to handle this
traffic. Therefore wide-scale deployment of end-to-end VoIP service over mobile broadband
networks is not expected before the takeoff of enabling networks such HSUPA and EV-DOrA
– expected in late 2008 or 2009.
Figure 1.1: Market segmentation for VoIP in the mobile and wireless markets
VoIP
Wireless
(Wi-Fi, WiMAX)
PDAs
Dual-mode
phones
Enterprise
Consumer
Fixed/Mobile
Convergence
Cellular
Plug-in
Softphone
Network
integrated
Enterprise
Enterprise
Consumer
Consumer
Source: Informa Telecoms & Media
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Introduction
In the wireless segment, two categories of phone solutions exist:
• Wireless IP phones are devices specifically designed to carry VoIP over wireless connectivity.
Using these phones, the VoIP service can be accessed over any wireless access point at home,
in the enterprise or even over any public hot spot. Examples of such phones include: the
UTStarcom F1000 and F3000; the Skype phone designed by USI; ZyXEL P-2000W; and
the Netgear Wi-Fi phone. These phones are tightly configured and designed to support a
specific service provider. For example, UTStarcom F1000 is specifically designed for the
Vonage service and is not able to support any other service.
• Mobile softphones are basically software clients that can be embedded or downloaded to
any PDA or dual mode mobile phone powered by advanced OSs that support VoIP
functionality. A number of players, including Skype, Tencent, Microsoft, Aql, Eqo and
Truphone, are now building different communities of VoIP users. They are offering PC
users and some PDA and smartphone users free-to-download VoIP platforms to enable
subscribers to make free calls to other users inside their communities. These companies
also act as mobile virtual VoIP service providers offering their subscribers relatively cheap
call services to any mobile or fixed line.
In the cellular market, different approaches to the implementation of VoIP services are
possible:
• The first implementation approach consists of using a mobile softphone client to enable
the user to be connected to the VoIP service via cellular networks. Because incumbent
mobile operators generally make access difficult for any content outside their walled
gardens, a pre-established agreement is needed to enable softphone providers to offer VoIP
services over cellular networks. Skype, for example, has already signed few deals to offer
VoIP services to mobile users including subscribers to Hutchison’s 3 operations and E-Plus
using PDA smartphones and PC cards.
• The second is a software plug-in implementation approach. Users sign up through an
Internet web site and then get a software plug-in added to their device. Most of the
software plug-in clients are based on a Java micro edition (J2ME) applet and user
datagram protocol (UDP). This client consists of a telephony interface connected to an
agent platform which reports to the server. Once details of the call destination are entered
the agent sends them together with the caller details to the server of the VoIP provider.
The server then establishes the communication between the two parts (the caller and the
receiver) using IP network when possible and mobile network at the access level. Although
this service uses VoIP to certain extent, connectivity at the access level is carrier over
cellular network (see fig. 2.8 for a schematic picture of this approach). Players using this
approach include Jajah, Mino Wireless, Eqo Mobile, iSkoot, Firsthand, and Agile.
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approach. One of the advantages of running VoIP over cellular networks is that it makes
the handset a native IP device, which significantly simplifies its design and functionality.
However, current cellular packet networks, such GPRS, EDGE, WCDMA, EV-DOr0 or
Introduction
• End-to-end integration of VoIP over cellular networks is a third possible implementation
even HSDPA, are not designed to handle end-to-end VoIP services. One of the limitations
of these networks is obviously the low bandwidth they offer. Nevertheless, future
generation networks such as EV-DOrA, EV-DOrB and HSUPA are potentially capable of
handling VoIP services. Qualcomm has already demonstrated VoIP calls over EV-DOrA
wireless infrastructure using real-world conditions.
FMC is another environment where VoIP can be used. Network operators with interests in both
fixed and mobile business can deliver a single subscription service using one phone and one
number over both fixed and mobile infrastructure. This means the mobile handset can use
mobile cellular infrastructure outdoors and VoIP over Wi-Fi or Bluetooth indoors – at work
and/or at home.
Voice over WiMAX (VoWiMAX) is another potential market for VoIP services. As a
high-bandwidth and long-range wireless technology, WiMAX has the potential to
revolutionise the worldwide broadband access market and strongly compete with alternatives
such as cable, ADSL, or fibre to the building (FTTB) technologies. VoWiMAX can simply be
seen as a more powerful, bigger-capacity and longer-range version of VoWLAN, but
widespread WiMAX – and consequently VoMiMAX – deployments are likely to take years.
Figure 1.2: Roadmap for different mobile VoIP solutions
VoIP over Mobile WiMAX
VoIP Technology Roadmap
VoIP over EV-DOrB
VoIP over HSUPA
VoIP EV-DOrA
VoIP Hardphones
Softphones over WiFi & cellular
VoIP Plug-in solutions
2007
2008
2010
Source: Informa Telecoms & Media
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Introduction
Supply-side market drivers
Because they are potentially so strategically important, wireless and mobile VoIP services are
proving to be a point of convergence for players from many different parts of the telecoms
market. There are a number of different types of company that are either considering,
planning or actively offering wireless or mobile VoIP services (see fig. 1.3).
Figure 1.3: Types of player targeting the wireless and mobile VOIP markets
Short-term
Medium to
long term
Mobile operators
Indirect content and
application providers
Mobile service
providers
Fixed broadband
providers
MVNOs
mVoIP
wVoIP
Wi-Fi ISPs
Fixed wireless ISPs
Hybrid operators
Indirect access
VoBB providers
Source: Informa Telecoms & Media
Fixed wireless operators
These players are already deploying fixed wireless infrastructure for broadband Internet.
Typically, they compete with fixed broadband access providers, which often also provide
PSTN or VoIP telephony services. By adding voice capability, fixed wireless operators can
make their services more attractive to potential customers, as well as increasing ARPU from
existing customers.
Depending upon the fixed wireless infrastructure they have chosen, their access to frequency,
and the terms of any licensing agreements, the fixed wireless operators might be able to offer:
a physically fixed terminal offering VoIP over a wireless backhaul circuit; nomadic wireless
VoIP, with roaming limited to a small area around the local access point; or – in the future
– they might be able to offer portable (with walking speed cell handover) or even fully mobile
VoIP services (using mobile WiMAX).
Examples of fixed wireless operators offering wireless VoIP services include WiMAX Telecom
in Austria and other countries, Irish Broadband in Ireland, Clearwire in the US and MVS Net
in Mexico.
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The driver for commercial Wi-Fi network operators to add wireless VoIP is to increase the
attractiveness of their services and to add a new revenue stream. Community Wi-Fi networks
are being installed to benefit the community at large and voice over Wi-Fi is typically seen
Introduction
Public Wi-Fi operators
as a natural extension of the broadband access service on offer. However, one technical
challenge is that most existing public Wi-Fi infrastructure does not support the quality of
service standards required for VoIP services, although VoIP services will work in practice as
long as a hot spot is lightly loaded.
Public Wi-Fi operators supporting wireless VoIP services include BT and The Cloud in the
UK, and Azulstar and Wayport in the US.
Hybrid operators
These are the companies that operate both fixed and mobile networks; they also happen to
be the biggest operators in the telecoms market. These companies have a dilemma. Their
separate fixed and mobile networks already face declining revenues as a result of traditional
fixed and mobile competition. By introducing wireless VoIP services, they risk cannibalising
the more valuable cellular mobile and – to a lesser extent – PSTN minutes and replacing them
with cheaper VoIP minutes. On the other hand, if they do not introduce wireless VoIP
services, they risk looking poor in comparison with alternative operators that have no legacy
revenue streams to protect.
Convergence is a very positive driver for the introduction of mobile VoIP. By migrating voice
services to IP on both fixed and mobile networks, these players can introduce interesting,
differentiated and potentially high value services which combine fixed and mobile voice, data
services and content, and which will ultimately be available over any network or device.
Examples of dual network operators include most former monopoly operators in Europe,
such as France Telecom/Orange, Deutsche Telecom/T-Mobile, TeliaSonera and Telecom
Italia/TIM, and numerous alternative operators, such as Wind in Italy and NTL/Virgin
Mobile in the UK.
Mobile-only operators
A potential driver for a mobile network operator to introduce wireless VoIP services is the
opportunity to capture the 65-75% of calls made within home and office environments that
do not go over mobile networks. This is linked with the desire to prevent fixed operators
from capturing mobile traffic when they add Wi-Fi capability in the home and office.
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Introduction
The main incentive for offering mobile VoIP is the ability to introduce higher value, feature-rich
services combining voice, data and content. Again, a fear is that mobile VoIP services could
undercut existing cellular circuit-switched voice services, although the mobile operators have a
reasonable degree of control over this in their own domain, given their strong control over both
mobile access networks and end-user devices
A longer-term incentive for introducing mobile VoIP is the potential to combine the cellular
and data networks by putting all the voice onto an IP network, thus avoiding the increased
costs associated with operating two separate systems.
Mobile operators also need to be able to provide high quality broadband access to provide
backhaul for Wi-Fi access points. This requires the deployment of a fixed network, or buying
wholesale access to existing broadband infrastructure, which may cause difficulties in
assuring the quality of the service over the fixed IP portion of the network.
Fixed network operators
A key driver for fixed network operators (including the DSL broadband access providers and
cable operators) to introduce wireless VoIP is to stop fixed mobile substitution (FMS) – the
substitution of fixed calls by mobile – and to recapture some of the 25-35% of calls made
from the home or office over a mobile network. For new entrants, adding wireless VoIP also
helps to differentiate them from the incumbent provider.
Service providers
There are a variety of types of service provider:
• Content and application providers: This type of player, as a new entrant to the telecoms
market, has no legacy revenues to protect. The driver for offering wireless or mobile VoIP
typically revolves around either building a large customer base or using wireless or mobile
VoIP to generate incremental revenue from an existing user base. Examples include
Mazingo and ROK Entertainment.
• Indirect access voice over broadband providers: These players offer voice over broadband
services but do not provide the broadband connection; they already compete by providing
fixed VoIP services. Adding fixed wireless, nomadic wireless or full mobile VoIP capability
enables them to expand the number of situations in which their services can be used by
their customers. Vonage is a prime example.
• Mobile service providers: These companies have emerged specifically to exploit the
arbitrage opportunity created by the difference between the costs carried by fixed and
mobile network operators, and the costs carried by asset-light or asset-free IP service
providers. Examples include Jajah, Rebtel or Mig33.
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protecting legacy revenue streams. The incentive to introduce wireless VoIP (or indeed mobile
VoIP if their wholesale contract permits it) is to make the service more appealing to customers
and to help drive market share. Examples include Hello in Norway or Helio in the US.
Introduction
• MVNOs: As new players to the mobile market, MVNOs do not have to worry about
Figure 1.4: Comparison of supply side drivers and inhibitors by company type
Drivers
Company
type
Reach new
customers
Protect
market share
Sell more
to existing
customers
Inhibitors
Reduce
costs
Technology
availability
Cannibalisation
risk
BFW and
Wi-Fi ISPs
IA VoBB
Dual network
operators
Mobile-only
operators
Fixed network
operators
Content and
application
providers
MSPs and
MVNO’s
Source: Informa Telecoms & Media
Near-term challenges
Although the end game is rarely disputed, the speed with which we will get there, and the
overall impact on the shape and structure of the industry is by no means clear. There is
potential for widespread disruption and industry re-structuring. To avoid losing their current
positions of dominance, the established players face a few key challenges:
• Managing the transition without ARPU meltdown: Operators have two principal
strategies for competing against low cost Wi-Fi services and widespread ARPU decline.
Firstly, they can create bundles with existing services and offer huge numbers of minutes
on the traditional network for a good price so limiting price attrition to niche markets.
Secondly, they can offer better quality of service at a premium.
• Finding new applications to offset the effect of ARPU declines: Many of these will be based
on innovative combinations of voice and data, combined with SIP-enabled functionality.
Perhaps the biggest growth area will be the growth of voice usage itself. Many operators
hope that the arrival of wireless VoIP service might actually drive additional voice usage
over their mobile networks, by helping them to capture traffic from fixed operators.
Operators are also hoping to drive extra voice revenues by getting people to use their
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Introduction
laptops for voice calls by providing them with softphones to download, or softphones on
USB sticks. Some operators could also embrace third party VoIP competitors to help drive
traffic towards their own networks rather than competitors’ infrastructure.
• Avoiding loss of control: A number of operators have attempted to prevent loss of control
by banning the use of independent VoIP services as part of the terms and conditions when
signing up for a contract. Another method for preventing loss of control is to maintain a
hold over the key areas of wireless access as well as mobile access, for example by
competing in auctions for wireless spectrum to ensure they are the main providers of
licensed wireless services.
• Managing the threat of convergence and the arrival of powerful new entrants: Fighting off
the threats from minnows is always required in a competitive market. But convergence is
bringing some big companies with powerful brand names and deep pockets into the
market such as Google, Microsoft, Yahoo and eBay. Their entry to the market would be
likely to be highly disruptive. Potential strategies for dealing with the powerful new
entrants are to: i) provide entry level products which broadly match their price points, and
then focus on up-selling customers with products they will find hard to match; ii) establish
a market presence as a wholesale provider and take advantage of their brands and power
to drive traffic to the network in high volumes; iii) work with them.
Longer-term perspective
It is highly likely that, in the long-term, the arrival of wireless – and eventually mobile – VoIP
will lead to some restructuring of the industry, in the same way that the transitions from
analogue mobile to digital mobile, from 2G to 3G mobile and from PSTN to VoIP led to some
industry restructuring.
We can probably expect to see some players specialising in the provision of wholesale services
to wireless and mobile VoIP providers, and application providers (in the same way that some
operators have accepted that a good way to drive traffic on their networks is to encourage
MVNOs). These players will probably be those that are trailing in terms of market share.
While wireless VoIP services are becoming more commonplace, driven by the competing
desire either to capture mobile call traffic or defend the traffic already captured in specific
geographic locations (such as the home or office), and while third party mobile VoIP
applications are already available (such as Skype on 3’s network), it is likely to be several
years before fully integrated, end-to-end mobile VoIP services based on HSPA (HSDPA and
HSUPA) and EV-DOrA or mobile WiMAX emerge.
The longer-term driver for the introduction of mobile VoIP is the provision of integrated
mobile voice and data services with value adding applications. Operators with CDMA
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running WCDMA networks, simply because it is much harder for them to make voice and
data interoperate when the voice is going over circuit-switched networks, thus inhibiting their
development of integrated voice and data applications.
Introduction
networks will be driven towards provision of fully mobile VoIP before European rivals
Fully integrated mobile VoIP services offered by the mobile operators themselves seem likely
to start to emerge from 2008, but they are equally likely to remain small in scale and impact
at least until 2010. From the customer perspective, the particularly price conscious consumers
will be trying third party mobile VoIP clients before then. The main driver for customers to
take up mobile VoIP services from operators will be the availability of integrated mobile voice
and data applications. This will particularly be the case once business and consumer
application developers incorporate mobile VoIP technology into their products.
Many operators recognise the possibility that in the long-term (perhaps 10-15 years) cellular
networks will be shut down, with everything moving onto IP. But they doubt this will
happen until networks have been upgraded to cope with much larger volumes of data traffic
(due to widespread mobile TV usage amongst other things) so that adding voice to the
network has only a limited impact on service quality. The aim of migrating to a single
network would be saving costs.
When mobile VoIP services emerge, the leading players are expected to position themselves as
quality providers, trying to offset falling prices per minute by pulling in extra traffic and selling
a premium quality of service. When they eventually make the switch to end-to-end mobile voice
over IP services (over HSPA or EV-DOrA), they will probably not present customers with a
switched mobile versus IP mobile cost choice at all – in the same way that they did not position
digital cellular services as being cheaper than analogue. Network operators are unlikely to
encourage radical reductions of prices simply because they have deployed mobile VoIP, although
some indicate off the record that they are considering introducing low-priced entry-level services
to enable them to compete with the headline grabbing products of third party mobile VoIP
providers such as Skype, Mobiboo or JaJah. These entry-level services will be used to attract
customers with the aim of up-selling to improved – and more expensive – service packages in
the same way that fixed broadband operators typically offer multiple tiers of service starting
with a very cheap entry-level package.
The nightmare scenario for mobile operators is a dirt cheap flat-rate plan on HSPA networks,
probably offered by an MVNO in combination with circuit switched mobile outside 3G
coverage areas. But before this is even a possibility, the market needs a ready supply of
HSDPA devices supporting VoIP and HSUPA needs to be deployed.
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Chapter 2
Case studies
Mobile operator
Sprint Nextel
Company overview and strategy
Sprint Nextel is a leading mobile and wireless network operator in the US. It was formed
through the merger of Sprint and Nextel. It also operates long-distance fixed networks, but
recently spun off its local telephony business as a separate company.
Sprint Nextel’s mobile infrastructure is based on CDMA and iDEN technology and covered
278 million people by mid-2006. It has been steadily upgrading its CDMA network to offer
data services under the PowerVision brand. Its first upgrade, to EV-DO Revision 0, had
reached over 153 million people by the end of June 2006. In August the company announced
that it was planning to begin rolling out services based on an upgrade to EV-DOrA during
4Q06 and to provide coverage for around 40 million people by the year-end. The complete
network is due to be upgraded by 3Q07.
In August Sprint Nextel announced plans to deploy a 4G network based on mobile WiMAX
(IEEE 802. 16e-2005); the network is expected to provide coverage for 100 million people
by 2008. It will operate in the 2.5GHz frequency range, in which Sprint Nextel holds licences
covering 85% of homes in the top 100 US markets. Sprint Nextel will be working with Intel,
Motorola and Samsung to deploy the network, to make sure integrated chipsets are widely
available within devices and to ensure that multimode CDMA/EV-DO/WiMAX compatible
devices are on offer. Services are expected to be launched on a trial basis in selected areas
towards the end of 2007 and the operator expects to invest US$2-2.5 billion in 2007 and
2008 to make services a reality. The payback is that it expects mobile WiMAX to deliver
substantial cost-per-bit improvements in comparison with currently available mobile
broadband technologies.
Sprint Nextel is already one of the largest Wi-Fi providers in the US, operating a network of
around 22,000 hot spots.
Services
Sprint has been offering an early form of mobile VoIP service for some time in the form of
its ReadyLink Walkie Talkie push-to-talk (PTT) service on its PCS network. Meanwhile
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Case studies
Nextel had a PTT service based on its iDEN network. Their offerings were based on different
technologies – Sprint’s service is IP-based, while Nextel’s service is based on Motorola’s
proprietary iDEN packet technology and not based on IP. Both have continued to be available
since the merger of the two businesses.
In October 2006 the operator announced plans to upgrade its PTT offerings. It is deploying
Qualcomm’s QChat solution and has contracted Lucent Technologies to project manage the
installation, integration and testing work. The upgraded service will run over Sprint’s
nationwide PCS network and will be interoperable with the Nextel PTT service. It will also
be implemented on Sprint’s EV-DOrA network and will be available from 2008.
QChat is optimised to work on an EV-DOrA network and is expected to offer a call set-up
latency of less than one second between handsets. Sprint, Lucent and Qualcomm reported
that they have completed trials using pre-production handsets, commercial-grade lab systems
and EV-DOrA field sites.
Aside from enhanced PTT, Sprint Nextel has stated that the faster data rates on its EV-DOrA
network will enable the provision of a number of applications including high-speed video
telephony. The operator has already tested a number of new applications including all-IP
video telephony, and multi-user videoconferencing services.
The operator is expected to use its WiMAX network for data services, leaving capacity on
the EV-DOrA network for voice.
Sprint Nextel has a strategic partnership with a number of the leading cable operators in the
US: Time Warner Cable, Comcast, Bright House Networks and Cox Communications. The
partners unveiled their agreement in late 2005; they aim to integrate voice, data and
entertainment services (including the provision of proprietary content and cross-platform
portals), and the supply of integrated handsets, modems and set-top boxes.
The partners are widely expected to introduce a telephony service which provides calling via
IP over the cable operators’ cable TV networks, uses Wi-Fi to provide nomadic access from
the home and within range of a public Wi-Fi hot spot, and uses Sprint Nextel’s mobile
network elsewhere. They have been reported to have been testing handsets, but would not
officially confirm this. The partners’ first joint services (normal wireless offered through the
cable partners) were introduced to the market in limited areas in November 2006, with
services expected nationwide during 2007.
Sprint Nextel’s VoIP relationship with the cable companies is already strong, given that it
provides backbone services enabling them to deliver fixed VoIP services to their broadband
customers. By August 2006 it served cable companies with over 1.2 million VoIP subscribers.
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Sprint Nextel does not publish the exact number of users is has for its PTT service, but does
claim a walkie-talkie ‘community’ of over 20 million people. In mid-2006 it was the third
largest mobile operator in the US with nearly 52 million customers.
Case studies
Customers/subscribers
SWOT analysis
Strengths
Sprint Nextel has the advantage of significant scale to drive economies in its handset
purchasing. It has a strong contract customer base.
Weaknesses
Sprint Nextel’s lack of fixed infrastructure might prove to be a weakness if delivering
converged services alongside the cable operators proves problematic and delays its launches
in comparison with competitors.
Opportunities
Sprint Nextel has the exclusive opportunity to market its services to millions of cable operator
customers across the US and its mobile service will be bundled into the quad play offer of at
least four major players.
Threats
There is a risk that wireless usage by cable operator customers will pull substantial retail
traffic off Sprint Nextel’s mobile networks in home zones and hot spot zones and replace it
with less valuable wholesale transit traffic, contributing to a decline in ARPU on the network.
Established VoIP providers
Jajah
Company overview and strategy
Its founders characterise Jajah as ‘Internet enabled’ telephony; VoIP is used in the core
network only, with both ends of the call terminated through conventional switched
infrastructure – fixed or mobile.
Jajah uses a softswitch (vendor undisclosed) and proprietary software. It currently has
agreements with ‘a handful’ of wholesalers and terminates calls at 200 termination points in
85 countries. The company claims that it always pays local wholesale rates, is the biggest
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Case studies
buyer of Global Crossing’s ‘golden’ VoIP minutes (highest quality minutes) in Europe and
has earned up to 50% discount in just five months of operation because of its high volumes.
Jajah says it may launch an IPO in 2008. The company does not rule out developing alliances
with infrastructure-owning fixed operators that might wish to encourage a model which
offers cut-price telephony without cutting out the network operator.
Jajah only aims to do just a little better than break even on call costs and plans to push prices
down towards zero. Its strategy is to make money on services such as conference calling and
others it claims are being readied for launch.
However, there is also no doubt that Jajah’s success will represent yet more downward
pressure on call pricing and on the pricing of value-added features, such as conferencing.
Services
Users initiate calls through their web browsers. A personal directory of numbers that are used
regularly may be stored on the subscriber’s home page. The Jajah user instructs the Jajah
softswitch to initiate calls to both the Jajah user’s designated phone number (fixed or mobile)
and the called party.
First Jajah ‘terminates’ a call to the caller’s phone (the phone rings and the caller picks it up
to be told that Jajah is now calling the target phone) it then ‘terminates’ the call in the other
direction to the called party. Essentially, Jajah pays for two local network terminations for
each call and uses VoIP for the expensive long distance leg in the middle.
Figure 2.3: Jajah VoIP call
Source: Jajah
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between Jajah users are free. It also offers a plug in for Microsoft Outlook. Calls can be
initiated from a Web page; users of Symbian handsets or most handsets which use Java, can
download an application which then initiates the call via an SMS.
Case studies
Users are encouraged to urge others to sign up to Jajah with the incentive that all calls
Except in the US, where the receiver pays, calls to mobile numbers are considerably more
expensive for the caller than landline calls (for example, £0.115 per minute compared with
£0.015 per minute for fixed line calls in the UK) in the countries where telecoms is liberalized.
Jajah defines these countries as ‘Zone 1’ and free calls are only available to other Jajah users
in these ‘Zone 1’ countries. Jajah claims its service is available in nearly every country, only
denying service in a handful of countries with a high fraud problem.
Barriers to use are kept low. Registered users are granted a small amount of credit and can
begin making calls straight away. The account can then be topped up by credit card with the
credit limit expanding automatically as a healthy payment pattern is established.
Customers/subscribers
According to Jajah, only 3% of Internet users are currently using VoIP software despite the
cost savings. It claims that a large proportion of potential users regard software
download/configuration and headset connection as a barrier which contrasts with the
‘low-barrier’ search engines now used by the vast majority of Internet users. Jajah wants to
target those potential customers and ultimately become a telephony version of Google by
‘eliminating barriers’ in Internet telephony. It has worked hard on ease-of-use and on
simplifying its marketing messages, emphasising its ‘Internet-enabled’ approach. The
company wants to work towards zero cost for both fixed and mobile basic voice calling.
Jajah claims that the fact many Skype users download and subsequently do not use that
service indicates that many users are still wedded to the conventional phone and, if given a
choice at about the same price, would use that instead of new terminal technology. Jajah’s
most important proposition is therefore to offer VoIP pricing while retaining the tried and
trusted conventional telephone. By not pushing VoIP through the access network, Jajah can
also claim higher voice quality.
The company claims less than 3% of its users avoid payment of any kind by only calling other
Jajah users. Where calls are paid for (to non-Jajah users), Jajah makes a reasonable margin,
but this revenue must be offset against the proportion of calls made for free for which Jajah
must still pay wholesale rates. The company claims the ratio of free to paid-for calls is bearable
and will be covered by additional revenue from ancillary services such as conferencing and
scheduled calls, as well as diminished by ever-lower wholesale termination costs.
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Case studies
SWOT analysis
Strengths
While not a conventional mobile VoIP play, Jajah’s business model and viral success illustrates
how important the ‘non-call’ aspects of telephony might become as the costs of providing
voice minutes diminish. With wholesale termination costs low and still dropping, the effort
of installing VoIP end-to-end could become a game of diminishing returns if users find this
approach also involves extra complexity, lower reliability and lower quality.
Instead of trying to push VoIP that extra last mile, Jajah has used an Internet business model
to transform provisioning and service into what it claims is a completely no-hassle procedure.
Two minutes after logging on to Jajah.com a user can make a call at a low rate using familiar
equipment. The proposition is easy to understand and the barriers – such as a requirement
to download the correct software to make it work – are minimal.
Jajah is a so-called ‘low-touch’ business model with nearly all customer interactions
automated via the Jajah server. It is therefore highly scalable and should be a profitable
platform for marketing extra services.
While its mobile call charges are high in comparison to the ultra-low pricing expected from
other mobile VoIP players, Jajah’s experience indicates that a large group of users is prepared
to pay a little more for a hassle-free telephony proposition.
Weaknesses
Its mobile client is not available on all mobile phones – especially the very cheap ones whose
owners may arguably be the service’s key targets. Getting the software on all handsets will
be a significant challenge.
At present Jajah is a better proposition for fixed line users where termination costs are so
low it can match Skype. For mobile calls it is less competitive, typically costing £0.09-0.115
per minute or more. Even so, Jajah claims 30% of users’ calls are to or from a mobile. Unless
and until the costs of terminating and originating calls on mobile networks drop
dramatically, Jajah will be at a cost disadvantage against end-to-end mobile VoIP plays.
It may also be vulnerable to the network effect of its free offer for Jajah-to-Jajah calls – as
user communities build it seems inevitable that the ratio of free to paid-for calls will change
to Jajah’s disadvantage.
Opportunities
Jajah could be viewed by both fixed and mobile network operators as a partner, rather than
as a disruptive competitor. In its current guise, it makes use of existing infrastructure at both
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who focus on VoIP end-to-end and bypass the network operator’s voice infrastructure.
Threats
Case studies
ends of the call and pays for that use at wholesale rates. This is in stark contrast with players
Jajah may be vulnerable to copycat competitors. The technical solution uses standard
elements and does not rely on any defensible intellectual property. Jajah is the result of strong
marketing and execution and this could be emulated by other players.
Vonage
Company overview and strategy
Vonage was formed in 2001 and was seen as the original VoIP business. It claims it was the
first serious player to bring VoIP to a mass market in North America and UK. The company
serves both business and residential markets with SIP services, using the open Internet as an
access network.
Vonage is keen to move its VoIP away from its ‘geeky’ image and says its ‘core belief’ is that
it is in the ‘communications business’ first – the VoIP technical underpinnings are only
incidental. The company’s main aim is to make services easier to use; it tackled the fixed
telephony market as it was the largest segment and its strategy is to increase the functionality
of the service.
Vonage was also the first VoIP service provider to become a public company in mid-2006.
Services
Vonage’s first product was a telephone adapter that the subscriber plugs into the DSL modem;
it is introducing an integrated phone/adaptor unit during 2007.
Its service prices are flat rate, priced at £7.99 in the UK and US$24.99 in US for residential;
£18.99 (UK) and US$49.99 (US) for business.
Vonage claims it started working on the Wi-Fi phone in 2004 with the idea of developing a
portability, rather than premium mobility, option. The company has now introduced
portability and says it is interested in using IP to add new features to voice to make it an
effective business communications tool. It has plans to develop features such easier
conferencing and voicemail messaging as an alternative to e-mail.
Vonage is building Wi-Fi capabilities. It offers a Wi-Fi service for its own phone through The
Cloud in the UK and has announced plans to develop a similar capability in the US through
a wholesale agreement with EarthLink which is building 12 city networks during 2007.
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Case studies
Over time Vonage is looking to offer dual mode 3G/GSM and Wi-Fi so that the same phone
can be used at home, on the fixed line, and in Wi-Fi hot spots in urban areas and then as a
mobile where no Wi-Fi is available.
Portability options are a sensible move and they play to the strengths of the SIP protocol. For
instance, Vonage launched the V-Phone – a phone on a memory stick – in 2006. The user
plugs the V-Phone into a PC or laptop which then becomes the home phone with incoming
and outgoing calls and voice messages.
Vonage is also trying to make its pricing more attractive. It is offering a new option V-Access,
which offers a local Vonage phone number to anyone wanting to make a long-distance or
international call to another Vonage customer. Callers obtain a local access number from the
Vonage Web site, and, after dialing this number, they can enter a Vonage number or an 800
number. The call is then connected to that number without incurring a long-distance or
international usage charge.
Customers/subscribers
Vonage says it had over 2.2 million subscriber lines as of December 31, 2006, up from 1.27
million at the end of 4Q06 and 390,570 at the end of 4Q05. Average monthly revenue per line
for 4Q06 was US$28.25, up from US$27.22 in 4Q05. Vonage said in September 2006 that it
would keep spending heavily to attract subscribers but predicted that it will take two quarters
of improved performance before investors become comfortable with the pure-play VoIP
provider’s strategy. The company, which has forecast an operating profit as early as 1Q08,
added that it can continue spending at its current burn rate for just over two-and-a-half years
before running out of money.
SWOT analysis
Strengths
First heavily promoted VoIP provider and has strong brand recognition.
Weaknesses
Vonage reported losses of US$65 million on revenues of US$181 million in 4Q06 compared
with a loss of US$72 million on revenues of US$95 million in 4Q06. But while the headline
financials appear to be heading in the right direction some key metrics are not.
The company’s big problem is customer acquisition costs (mostly advertising). Marketing
costs per gross subscriber line addition were US$306 for 4Q06 up from US$249 for the year.
Churn was running at around 2.3% per month in 4Q06, a huge problem when the customer
acquisition costs are so high.
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and questions raised over the company’s decision to sell shares to customers.
Vonage is using a conventional business model to sell telephony services that use VoIP to both
residential and business customers. While the company makes much of its ability to use its
Case studies
Vonage’s IPO was dogged by controversy, with its share price dropping 30% after launch
technology to offer innovative services, it has yet to go far beyond conventional options such
as conference calling and the like – although it is exploring some service portability.
Opportunities
Vonage has high visibility as the first serious VoIP telephone company. If it can build a
compelling proposition based around advanced features, such as portability/mobility, rather
than price, which is becoming increasingly irrelevant, it may be able to reduce churn and
build a sustainable business.
Threats
Vonage is selling telephone calls in a market that increasingly sees fixed calls as a give-away
(or near give-away). As telephony market pricing drops still further, multi-play operators have
the opportunity to make money on alternative services, such as video.
Vonage’s central proposition is that, because VoIP is inherently more cost-effective, savings
can be passed on to its customers as lower pricing. In fact, Vonage’s pricing is being matched
by its incumbent competitors and beaten by new entrants. As the market evolves, Vonage
may need to decide which customer segment it should target.
Vonage needs to build a portfolio of reasons for its subscribers to stay with its service, when
they could get VoIP services through cable company triple play offers at the same or lower
prices as part of a bundle.
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Chapter 3
Mobile and wireless VoIP market
forecasts 2006-2011
Forecasts overview
Mobile VoIP technology is promising to change market dynamics and the way voice services
are offered, giving more power and control to the end user and also an enhanced user
experience by enabling the creation of a number of value added services around voice.
There are signs of possible growth in some segments of mobile and wireless VoIP, notably the
so-called softphone solutions together with VoIP for FMC. However, it is unlikely that VoIP
integrated with cellular technology will emerge before the wide-scale deployment of mobile
broadband services over networks such HSUPA and EV-DOrA/B; the deployment of these
high-bandwidth and low latency networks is necessary in order to provide end-to-end quality
VoIP services over cellular networks. Informa Telecoms & Media believes that 2007-2008
period will be a key year for the issues discussed above and will bring clearer visibility on the
future success of different implementations of mobile and wireless VoIP.
Currently the largest drivers for mobile VoIP services are softphones and plug-in solutions
followed by FMC.
Figure 3.1: Worldwide mobile and wireless VoIP users by market segment
140
FMC VoIP
VoWLAN
120
VoIP integrated to
cellular networks
Softphone over cellular
VoIP plug-in solutions
Users (million)
100
80
60
40
20
0
2006
2007
2008
2009
2010
2011
Source: Informa Telecoms & Media
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Mobile and wireless VoIP market forecasts, 2006-2011
Mobile plug-in solutions
Since plug-in services are not currently controlled by mobile operators, it is difficult to
estimate the size of this market. Plug-in clients are generally downloaded from the portal of
the VoIP provider or they can be sent and configured over the air. Once the client is installed,
the device becomes VoIP-enabled. Examples of players offering such services are Jajah,
Mino Wireless, Eqo Mobile, iSkoot, Firsthand and Agile.
The dynamics of this market is expected to be more aggressive within the next three years as
providers of such services are currently basing their strategies on very competitive pricing
compared with traditional mobile voice services.
Plug-in VoIP service providers are targeting early testers, mainly prepaid consumers as they
are not bound to any contract schemes with the operator and do not generally benefit from
the discount plans, the cheap voice through minute bundling arrangements or the free evening
and weekend time calls the operator might offer to its contract customers.
Another type of consumer that plug-in service providers might target is those who frequently
use their mobile phones to make international calls. Plug-in solutions offer highly
competitive prices compared with traditional mobile international calls as they use VoIP at
the core network and are not generally burned by the high costs associated with roaming.
However, the size of this market segment is relatively small. It is estimated that more than
95% of total communication calls made via mobile phones are local calls and only a very
small proportion of subscribers use their mobile phones to make international calls.
A number of mobile VoIP providers using plug-in solutions are currently emerging mainly in
North America, Europe and some Asia Pacific countries. By the end of 2006, these providers
were estimated to have attracted 140,000 users in North America, 160,000 in Asia Pacific
and 90,000 in Europe.
The number of users of plug-in services is expected to grow from just over 410,000 users in
total in 2006 more than 26 million users in 2011 (see fig. 3.2). However, this number is
expected to plateau after 2009 and even decline in a number of developed regions including
North America, Western Europe, Japan and South Korea for several reasons:
• So far, attractive per-minute pricing is the only differentiator of plug-in services compared
with traditional mobile services. The majority of users in developed countries also have a
reluctance to compromise the quality of service and are prepared to pay relatively high
price for premium services
• In these regions, mobile operators are expected to offer attractive packages to their
subscribers with increased value added services, voice minute bundling, or even flat-rate
subscriptions for premium customers.
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to frequently upgrade via online payment services. Besides the lack of trust that the
majority of users have in such payment methods, these methods make it hard for the
consumer to track details of calls they have made. In addition users in developed regions
prefer to opt for the option of one bill for all mobile communications services.
• The lack of quality of service and the lack of global coverage will discourage a number of
users to opt for such solutions.
However, the number of users in developing countries, mainly Latin America, India,
the developing markets in Asia and China, is expected to grow over the forecast period.
Figure 3.2: Worldwide mobile users of VoIP plug-in solutions by region, 2006-2011
Users (million)
North America
US
2006
0.14
0.13
2007
1.04
0.98
2008
3.00
2.82
2009
5.17
4.84
2010
6.32
5.92
2011
6.09
5.70
Canada
Latin America
Asia Pacific
Japan
0.01
0.04
0.16
0.05
0.06
0.20
1.15
0.24
0.18
0.76
3.21
0.62
0.32
1.68
5.92
0.97
0.40
2.53
8.18
1.09
0.39
2.97
8.84
0.79
China
0.05
0.27
0.75
1.42
2.10
2.49
Korea
0.01
0.10
0.25
0.40
0.44
0.31
India
0.02
0.16
0.49
1.01
1.55
1.90
Rest of AP - Developed
0.02
0.13
0.35
0.62
0.77
0.63
Rest of AP - Developing
Europe
Western Europe
0.02
0.09
0.06
0.25
1.08
0.88
0.75
3.37
2.74
1.50
6.10
4.72
2.23
7.99
5.73
2.73
8.04
5.13
Eastern Europe
Africa/Middle East
Africa
0.02
–
–
0.21
0.02
0.01
0.63
0.12
0.06
1.39
0.35
0.20
2.26
0.66
0.40
2.92
0.41
0.27
Middle East
Total
–
0.41
0.01
3.50
0.06
10.45
0.15
19.22
0.25
25.69
0.14
26.35
10
North America
9
Latin America
Asia Pacific
8
Europe
7
Users (million)
Mobile and wireless VoIP market forecasts, 2006-2011
• Plug-in services are based on the pay-as-you-go approach, which means that the user has
Africa/Middle East
6
5
4
3
2
1
0
2006
2007
2008
2009
2010
2011
Source: Informa Telecoms & Media
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Mobile and wireless VoIP market forecasts, 2006-2011
By 2011, the Asia Pacific region, mainly India, China and other developing countries,
is expected to be the main market for plug-in solutions with more than third of worldwide users
of such solutions residing in this region. Europe is expected to be the second largest market;
the number of users here is expected to exceed 8 million, representing 31% of worldwide users.
Mobile softphone solutions
The difference between plug-in solutions and softphone solutions is that the former uses VoIP
at the access level while the latter uses traditional mobile voice service at the access level.
Because of their footprints and relatively sophisticated functionality, these solutions are now
available only for smartphones powered by the latest versions of open OSs such as Microsoft,
Symbian, RIM’s Blackberry or Linux. In term of connectivity, softphone mobile VoIP services
can be accessed via either WLAN connectivity or cellular networks.
Before assessing the market opportunities for softphone solutions, the different enabling
devices – including smartphones, dual mode WLAN/cellular smartphones and PDAs
embedding WLAN connectivity – are considered.
Market forecasts for smartphones
Smartphones are best described as multimedia devices that, in addition to their phone
functionality, offer advanced computing capabilities, enabled by an advanced operating
system. This category is diverse and has been born out of the amalgamation of mobile
handsets offering PDA functionality on an advanced OS and PDAs with a WWAN
connection. Indeed most advanced features and technologies are first seen in this segment.
The increased interest in smartphone OS will see sales of smartphones growing strongly from
more than 75 million in 2006 to almost 104 million in 2007 (see fig. 3.3). The increasing unit
sales of these devices are due to the growing multimedia capabilities of these devices and the
growing share that they will take from the feature rich non-smartphone segment. The ability
to download and use a wide range of native applications greatly increases device usability.
24
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Users (million)
North America
US
2006
7.03
6.59
2007
14.32
13.46
2008
25.77
24.22
2009
37.32
34.96
2010
51.77
48.47
2011
77.09
72.02
Canada
Latin America
Asia Pacific
Japan
0.44
4.20
28.43
11.10
0.87
6.12
36.30
13.36
1.55
8.35
46.95
14.52
2.37
11.48
60.15
15.22
3.30
14.86
77.15
16.14
5.06
18.76
101.67
17.34
China
7.13
9.07
13.29
18.84
25.78
33.98
Korea
0.67
0.95
1.31
1.61
1.88
2.06
India
2.06
3.30
5.00
7.07
9.63
13.91
Rest of AP - Developed
4.41
5.30
6.59
8.51
10.57
13.05
Rest of AP - Developing
Europe
Western Europe
3.05
30.19
23.40
4.32
39.61
30.25
6.24
52.27
39.09
8.90
71.84
54.53
13.14
91.56
70.18
21.32
112.38
84.74
6.79
5.29
2.96
9.36
7.36
4.22
13.17
10.26
6.09
17.31
14.27
8.72
21.38
18.47
11.30
27.64
22.83
13.51
2.32
75.13
3.13
103.71
4.17
143.59
5.56
195.06
7.17
253.81
9.32
332.72
Eastern Europe
Africa/Middle East
Africa
Middle East
Total
120
North America
Latin America
100
Mobile and wireless VoIP market forecasts, 2006-2011
Figure 3.3: Worldwide smartphone sales, by region, 2006-2011
Asia Pacific
Units (million)
Europe
Africa/Middle East
80
60
40
20
0
2006
2007
2008
2009
2010
2011
Source: Informa Telecoms & Media
Market forecasts for WLAN-enabled mobile phones and PDAs
Mobile WLAN devices can be split into two main categories: dual mode handsets also enabling
cellular connectivity and WLAN PDAs that are not specifically powered by cellular modems.
The total market for mobile phones with WLAN capabilities is forecast to grow from
9 million in 2006 to more than 154 million in 2011. Sales of these devices are expected to
be mainly generated from dual mode handsets throughout the forecast period, they are
expected to account for 88% of the total by 2011 (see fig. 3.4).
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MOBILE VOIP:
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160
Total dual mode
Total WLAN-enabled PDAs
140
120
Units (million)
Mobile and wireless VoIP market forecasts, 2006-2011
Figure 3.4: Dual mode handsets versus WLAN-enabled PDA sales, 2006-2011
100
80
60
40
20
0
2006
2007
2008
2009
2010
2011
Source: Informa Telecoms & Media
A number of handset vendors are now progressively implementing WLAN into their devices.
WLAN capability is expected to represent a significant proportion of product portfolio of
some leading vendors including Nokia, Samsung, and Motorola. While sales for dual mode
handsets is expected to grow rapidly over the next five years, sales of WLAN-enabled
handsets excluding mobile phones will grow more slowly – forecast to only just exceed
19 million in 2011 (see fig. 3.5). Although WLAN capability is expected to significantly help
the PDA market to maintain steady sales, actual growth in this market is expected to
increase only slightly.
Figure 3.5: Worldwide WLAN-enabled handset sales, by region, 2006-2011
Users (million)
Dual mode handsets
North America
2006
2007
2008
1.00
3.43
US
0.98
3.32
Canada
Latin America
Asia Pacific
Japan
0.03
0.13
2.74
1.63
0.10
0.41
7.04
4.22
2010
2011
9.08
17.87
29.13
45.01
8.73
16.99
27.56
42.42
0.35
0.97
13.74
7.49
0.89
1.94
22.78
11.12
1.57
2.96
33.43
14.83
2.59
3.87
44.64
17.93
China
0.29
0.76
1.79
3.30
5.48
8.51
Korea
0.14
0.36
0.99
2.17
3.61
4.47
India
0.07
0.24
0.62
1.24
2.04
3.01
Rest of AP - Developed
0.52
1.14
2.04
3.21
4.31
5.32
Rest of AP - Developing
Europe
Western Europe
0.10
2.54
2.27
0.32
5.56
4.80
0.82
10.64
8.89
1.74
18.85
15.71
3.16
28.08
23.37
5.40
36.30
29.85
Eastern Europe
Africa/Middle East
Africa
0.27
0.18
0.09
0.76
0.53
0.28
1.75
1.24
0.69
3.14
2.40
1.41
4.71
3.80
2.26
6.45
5.06
2.92
Middle East
Total dual mode
0.09
6.59
0.25
16.97
0.55
35.68
0.99
63.84
1.54
97.40
2.14
134.88
Source: Informa Telecoms & Media
26
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Users (million)
2006
WLAN enabled handsets excluding mobile phones
North America
1.43
US
1.37
Canada
0.07
Latin America
0.04
Asia Pacific
0.24
Japan
0.02
China
0.07
Korea
0.02
India
0.02
Rest of AP - Developed
0.09
Rest of AP - Developing
0.02
Europe
0.68
Western Europe
0.55
Eastern Europe
0.12
Africa/Middle East
0.07
Africa
0.02
Middle East
0.04
Total WLAN-enabled
2.46
2007
2008
2009
2010
2011
2.41
2.27
0.14
0.11
0.60
0.04
0.16
0.05
0.04
0.23
0.06
1.30
0.99
0.31
0.19
0.07
0.12
4.61
3.53
3.30
0.23
0.25
1.15
0.09
0.33
0.11
0.10
0.39
0.13
1.94
1.48
0.46
0.48
0.16
0.32
7.35
4.79
4.46
0.33
0.59
1.91
0.17
0.65
0.16
0.16
0.54
0.23
2.79
2.10
0.70
0.95
0.31
0.64
11.04
5.75
5.33
0.43
1.07
2.87
0.31
1.08
0.21
0.23
0.71
0.33
3.71
2.67
1.04
1.60
0.56
1.03
15.00
6.67
6.17
0.50
1.63
3.82
0.45
1.51
0.24
0.30
0.90
0.43
4.81
3.36
1.45
2.24
0.80
1.44
19.17
Source: Informa Telecoms & Media
North America, Asia Pacific and Europe will between them account for over 90% of the
worldwide sales of dual mode handsets: North America with 33.4%, Asia Pacific with 33.1%
Mobile and wireless VoIP market forecasts, 2006-2011
Figure 3.5: Worldwide WLAN-enabled handset sales, by region, 2006-2011 (continued)
and Europe with 26.9% in 2011. Africa & Middle East will account for 3.8% and Latin
America 2.9%.
Market forecasts for VoWLAN softphone users
So far, the majority of mobile VoIP soft solution providers are targeting access via WLAN
connectivity, so users can enjoy VoIP service in public hot spot areas, at work by connecting
to the corporate network or at home by connecting to the broadband access. However, it is
not entirely clear whether there would be a significant higher demand for VoWLAN
softphones among consumers until at least the two following conditions are satisfied:
• Public, municipal or community wireless networks have similar geographical coverage to
cellular networks, thereby enabling mobile softphones to be carried over WLAN hotspots
and access points.
• Availability of dual mode handsets with integrated VoWLAN. So far, only service specific
phones, such as Skype SMC, PDAs and Pocket PC type phones can handle VoWLAN
functionality as they have the high processing performance, stronger battery capacity,
larger display and more flexible user interface necessary. All of these elements are required
to take better advantage of the multimodal capabilities of these phones for offering quality
mobile VoIP services. For these reasons, so far, the mobile VoIP client can be implemented
only over advanced and open OSs such as Symbian, Microsoft Windows Mobile or Linux.
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Mobile and wireless VoIP market forecasts, 2006-2011
These constraints are currently restricting the market opportunities of these solutions to
high-end smartphones and PDAs.
Figure 3.6: Worldwide VoWLAN users, by region and by handset type, 2006-2011
Users (million)
2006
Users with dual mode handsets
North America
0.01
US
0.01
2007
2008
2009
2010
2011
0.14
0.13
0.95
0.84
3.80
3.09
10.45
8.10
27.62
23.06
Canada
Latin America
Asia Pacific
Japan
0.00
0.00
0.01
0.01
0.01
0.01
0.21
0.13
0.11
0.09
1.21
0.68
0.71
0.46
3.88
1.91
2.35
1.29
9.37
4.32
4.56
2.56
20.25
9.23
China
0.00
0.02
0.12
0.37
0.79
1.77
Korea
0.00
0.01
0.04
0.10
0.30
1.09
India
0.00
0.01
0.09
0.48
1.37
2.57
Rest of AP - Developed
0.00
0.04
0.22
0.65
1.46
2.76
Rest of AP - Developing
Europe
Western Europe
0.00
0.02
0.02
0.01
0.28
0.24
0.07
1.47
1.10
0.35
5.08
3.44
1.14
13.42
8.76
2.83
28.53
19.30
Eastern Europe
Africa/Middle East
Africa
0.00
0.00
0.00
0.05
0.02
0.01
0.36
0.13
0.06
1.64
0.60
0.32
4.66
1.76
0.94
9.23
3.72
1.97
Middle East
0.00
0.01
Total dual mode users
0.04
0.66
Users with WLAN handset devices excluding mobile phones
North America
0.06
0.64
US
0.05
0.60
0.07
3.84
0.28
13.81
0.81
36.29
1.74
82.67
2.24
2.10
5.11
4.77
8.87
8.25
13.61
12.64
Canada
Latin America
Asia Pacific
Japan
0.00
0.00
0.01
0.00
0.04
0.02
0.12
0.01
0.14
0.11
0.53
0.05
0.34
0.41
1.43
0.15
0.62
1.06
3.04
0.35
0.98
2.17
5.51
0.67
China
0.00
0.02
0.07
0.27
0.74
1.61
Korea
0.00
0.01
0.06
0.16
0.30
0.47
India
0.00
0.01
0.04
0.12
0.25
0.45
Rest of AP - Developed
0.00
0.06
0.23
0.56
1.02
1.66
Rest of AP - Developing
Europe
Western Europe
0.00
0.02
0.02
0.01
0.31
0.25
0.06
1.15
0.92
0.17
2.67
2.10
0.37
5.05
3.84
0.66
8.27
6.07
Eastern Europe
Africa/Middle East
Africa
0.00
0.00
0.00
0.06
0.04
0.01
0.23
0.21
0.07
0.58
0.69
0.23
1.20
1.65
0.57
2.20
3.19
1.12
Middle East
0.00
0.02
0.14
0.46
1.08
2.07
Total
0.09
1.12
4.24
10.31
19.67
32.77
Source: Informa Telecoms & Media
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Users (million)
Total VoWLAN users
North America
US
2006
2007
2008
2009
2010
2011
0.06
0.06
0.78
0.73
3.19
2.94
8.90
7.85
19.33
16.36
41.23
35.70
Canada
Latin America
Asia Pacific
Japan
0.00
0.00
0.02
0.01
0.05
0.03
0.33
0.14
0.25
0.21
1.74
0.73
1.05
0.87
5.31
2.07
2.97
2.34
12.41
4.67
5.53
4.73
25.77
9.90
China
0.00
0.03
0.19
0.64
1.53
3.38
Korea
0.00
0.02
0.10
0.26
0.60
1.55
India
0.00
0.02
0.13
0.60
1.62
3.02
Rest of AP - Developed
0.01
0.10
0.45
1.21
2.48
4.42
Rest of AP - Developing
Europe
Western Europe
0.00
0.04
0.04
0.02
0.59
0.48
0.13
2.62
2.02
0.53
7.76
5.54
1.51
18.47
12.61
3.50
36.81
25.37
Eastern Europe
Africa/Middle East
Africa
0.00
0.00
0.00
0.11
0.05
0.02
0.59
0.34
0.13
2.22
1.29
0.54
5.86
3.41
1.51
11.44
6.91
3.09
Middle East
Total VoWLAN users
0.00
0.13
0.03
1.79
0.21
8.09
0.74
24.13
1.90
55.96
3.82
115.45
Source: Informa Telecoms & Media
The market for VoWLAN is more favourable for the fixed telecoms operators as they
Mobile and wireless VoIP market forecasts, 2006-2011
Figure 3.6: Worldwide VoWLAN users, by region and by handset type, 2006-2011 (continued)
understand IP much more than the mobile operators do. However, mobile operators could now
be in a more favourable position to take advantage of VoWLAN – a market in which they failed
to succeed earlier. Support of VoWLAN will be the first step in the operators’ strategy to provide
stronger services under the FMC services that guarantee smooth hand offs between cellular and
fixed networks. More details on FMC markets are provided later in this chapter.
VoWLAN specific devices and PDAs are expected to drive the usage of VoWLAN services until
2009 (see fig. 3.6). This is because the enabling devices are much cheaper and consume less
power compared with dual mode handsets. The average sale price of such devices is currently
in the range of US$200; this price is expected to be as low as US$80 by the end of 2011. The
number of users for these devices will grow from 90,000 in 2006 to almost 33 million in 2011.
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90
Users with dual mode
handsets
Users with VoWLAN specific
devices and PDAs
80
70
Users (million)
Mobile and wireless VoIP market forecasts, 2006-2011
Figure 3.7: Worldwide VoWLAN users, by handset type, 2006-2011
60
50
40
30
20
10
0
2006
2007
2008
2009
2010
2011
Source: Informa Telecoms & Media
Handset manufacturers have not offered much WLAN support so far, although some
high-end smartphones are currently embedding this feature. However, the leading vendors,
including Nokia, Samsung and Motorola, are now committed to embedding WLAN
functionality into a greater proportion of handset models. This commitment, together with
the improvement in the hardware technology, should enable WLAN functionality to be
smoothly integrated into mobile devices with just an incremental price increase and only a
small effect on the overall power consumption of the device.
As a result, the use of VoWLAN services on dual mode handsets is expected to overtake the
VoWLAN-specific devices sometime in 2009. The number of VoWLAN users carrying dual
mode handsets is anticipated to increase from 40,000 users in 2006 to more than 82 million
users in 2011 (see fig. 3.7).
Regionally, North America is expected to lead the market for VoWLAN services throughout
the forecast period (see fig. 3.8), reflecting the trend of the more data-centric behaviour of
North American consumers compared with users in other regions of the world. The number
of North American VoWLAN service users is expected to reach 41 million in 2011, up from
just 780,000 users expected by the end of 2007.
Europe is currently showing less interest in VoWLAN partly because of the very high
penetration of cellular technology in the region. The lack of clear strategy by the mobile
operators when it come to VoWLAN and the still high-priced dual mode handsets could
hinder initial uptake of VoWLAN services in both consumer and enterprise markets.
However, the region is likely to gain ground more rapidly over the forecast period, forecast
to have almost 37 million VoWLAN users by 2011, thanks to an anticipated boost from ISPs
and fixed line operators seeking to enter the mobile market in an attempt to counteract the
effects of fixed mobile substitution (FMS) and win market share.
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IMPACTING VOICE NETWORKS, DEVICES & BUSINESS MODELS IN THE CARIBBEAN
45
North America
40
Latin America
Asia Pacific
Users (million)
35
Europe
Africa/Middle East
30
25
20
15
10
5
0
2006
2007
2008
2009
2010
2011
Source: Informa Telecoms & Media
Asia Pacific will be the third largest market for VoWLAN services, attracting almost 26
million users by 2011. In that region, Japan will be the largest single market for such services
thanks to the plans of incumbents such as NTT DoCoMo and Softbank to facilitate the usage
of VoWLAN so that subscribers can use their dual mode handsets to make calls on cellular
Mobile and wireless VoIP market forecasts, 2006-2011
Figure 3.8: Worldwide VoWLAN users, by region, 2006-2011
systems while on the move and VoWLAN SIP-enabled systems for calls initiated from
in-building locations (e.g. home, office, or public hot spots). Other countries in the region
will increasingly see the need for VoWLAN access, particularly in the wealthier business and
tourist districts of large cities, tourist sites, airports and popular holiday resorts. After Japan,
the vast markets of China and India – although not currently seen to be supporting VoWLAN
– could be key to the future success of these services in Asia Pacific region and are each
forecast to have over 3 million VoWLAN users by 2011 (see fig. 3.8).
Market forecasts for users of softphones over cellular networks
The VoIP soft solution provider relies strongly on Internet openness. However, many
incumbent mobile operators continue to exercise an overwhelming control over mobile data
services denying access to any content outside their walled-gardens. This is a justifiable
strategy since mobile operators have invested billions of dollars in the mobile access
networks; they have already attracted more than two billion mobile users and are targeting
an addressable market of more than 3 billion by 2011. In some developed countries, mobile
phones have achieved complete or nearly complete market penetration, and a number of
consumers are dispensing with their landlines and now use only their mobiles – the fixed
mobile substitution (FMS) effect.
To protect their investments and generate revenues from services they have built, mobile
operators continues to block access to any Internet portal or server without a pre-established
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MOBILE VOIP:
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Mobile and wireless VoIP market forecasts, 2006-2011
agreement with the portal owner. Therefore, there is unlikely to be widespread usage of
softphone solutions over cellular networks until the following conditions are achieved:
• Mobile softphone clients are implemented in the majority of mobile handsets. So far, and
similarly to VoWLAN solutions, mobile softphone clients have relatively high hardware
requirements and can be accommodated only by smartphones powered by advanced OSs
such as Microsoft WM05 or Symbian V8 or above. This will significantly restrict the usage
of such services to high-end smartphones for the next three to four years at least.
• Access to VoIP services over current cellular networks is allowed by a number of
incumbent mobile operators. The soft solution providers cannot offer VoIP service over
mobile networks without an established agreement with the mobile operator. Skype,
for example, has already signed a few deals to offer VoIP services to mobile users
– including subscribers to Hutchison’s 3 operations and E-Plus – using PDA smartphones
and PC-cards.
So far only a few mobile operators are willing to open up their services to the Internet. This
is expected to change as a number of operators start to enable access to the open Internet to
their premium subscribers who are willing to pay additional costs to access Internet services
while on the move.
The total number of softphone over cellular users is set to grow over the next five years but
will still only reach 51 million in 2011 (see fig. 3.9), which will represent less than 1.7% of
the total number of mobile users. These users are expected to be the premium cellular
subscribers who are willing to pay extra fees to access such services.
Europe is expected to lead the way for such services; this is because its mobile operators will
increasingly offer differentiated services to their premium customers in an attempt to tackle
the on-going competition characterizing this region.
North America is expected to be the second largest market for softphone over cellular services
with some 13 million users by 2011. This number is much smaller than the 41 million users
that are forecast to use VoWLAN services (see fig. 3.9), which directly reflects the data-centric
nature of the North American market compared with the other regions of the world.
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Users (million)
North America
US
2006
0.02
0.02
2007
0.23
0.21
2008
1.03
0.97
2009
3.07
2.88
2010
6.80
6.38
2011
13.43
12.56
Canada
Latin America
Asia Pacific
Japan
0.00
0.01
0.06
0.02
0.01
0.05
0.31
0.11
0.06
0.17
0.99
0.30
0.19
0.49
2.56
0.66
0.43
1.14
5.48
1.25
0.86
2.16
10.30
2.06
China
0.01
0.06
0.23
0.65
1.46
2.76
Korea
0.00
0.01
0.03
0.08
0.16
0.26
India
0.00
0.03
0.10
0.31
0.74
1.52
Rest of AP - Developed
0.01
0.06
0.17
0.42
0.86
1.52
Rest of AP - Developing
Europe
Western Europe
0.01
0.10
0.08
0.05
0.64
0.48
0.16
2.31
1.71
0.44
6.16
4.55
1.02
12.95
9.68
2.18
22.31
16.53
Eastern Europe
Africa/Middle East
Africa
0.02
0.01
0.01
0.16
0.06
0.03
0.60
0.22
0.12
1.61
0.65
0.37
3.27
1.51
0.86
5.77
2.81
1.59
Middle East
Total
0.01
0.21
0.03
1.28
0.10
4.71
0.29
12.93
0.64
27.87
1.22
51.00
25
North America
Latin America
Mobile and wireless VoIP market forecasts, 2006-2011
Figure 3.9: Worldwide softphone over cellular users, by region, 2006-2011
Asia Pacific
20
Europe
Users (million)
Africa/Middle East
15
10
5
0
2006
2007
2008
2009
2010
2011
Source: Informa Telecoms & Media
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